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Romgaz did not reach a deal with Polish partners
The gas producer Romgaz, one of the msot profitable state owned companies, decided a year ago to withdraw from its partnership with Aurelian Oil& Gas and Sceptre Oil & Gas companies for exploration and production operations in Poland. Complete withdrawal procedures have not been completed because there are difference of opinion between Romgaz and its partners, the 2016 company report shows.
Rongaz was a partner within partnership accords concluded with Aurelian Oil & Gas Poland and Sceptre Oil & Gas for oil operations in the areas of Cybinka and Torzym in Poland.
Romgaz had a share of 30% in the two licences taken over in 2008. According to company data of 2015, the completion of exploration was programmed for the beginning of 2017.
Romgaz managers decided to withdraw from concessions in Poland because of the unfavorable results obtained while drilling in Sosna, and because of the continuous delay in executing drilling works by partners in the last two years, the report shows.
“At present, Romgaz is no longer a shareholder in the two entities, but complete withdrawal procedures have not been completed and there are still differences between the opinion of Romgaz and that of the operator about the yielding of rights and obligations by Romgaz, which result from the loan accords (association Romgaz, Aurelian Oil&Gas Poland and Sceptre Oil& Gas Poland)” the Romgaz report shows.
Romgaz has a participation of 25% in three oil perimeters in Slovakia (Svidnik, Snina and Medzilaborce). In 2016, the operator obtained most of approvals and permits needed for drilling.
The net Romgaz profit dropped by 14.2% in 2016, to 1.02 billion lei (about 227 million euros), on the background of a business drop by 15.8%, the producer’s activity being affected by the drop of gas consumption.
In 2016, the company made investments of 497.7 million lei (10 million euros), half the level of 938 million lei, reached in 2015.
The gas production of the company dropped last year by 24.1%, to 4.22 billion cubic meters, from 5.56 billion cu,m in 2015.
Romgaz has about 6,200 employees and next to OMV Petrom, the company controlled by the Austrian group OMV, concentrates almost the entire natural gas production of Romania.
Company shares are transactioned in the stock market (BVB) and London exchange (LSE). The Romanian state is the main shareholder with a 70% participation. The company has now a market value of 11.83 billion lei (2.62 billion euros).