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Romgaz SA establishes a subsidiary specializing in the management of natural gas storage

By Emea Riga
Romgaz SA announces that starting April 1, the subsidiary that will manage natural gas storage will become operational. The branch is called Depogaz Ploieşti SRL.
The establishment of this subsidiary will respond to the current market demands through greater flexibility and will allow the optimization of the storage activity through the more efficient management of the resources involved.
Underground storage of natural gas has a major role to play in securing natural gas supply, facilitating the balancing of domestic consumption - domestic production - natural gas imports by covering the consumption peaks caused mainly by temperature variations in order to obtain technical advantages; economic.
In view of the nature of the activity, the Subsidiary will take over the storage facilities in the Romgaz concession, will operate the assets that contribute to the activity owned by Romgaz SA and will fully take over the Romgaz warehouse staff.
Romgaz is the largest producer and main supplier of natural gas in Romania. The company is admitted to trading on the Bucharest Stock Exchange and the London Stock Exchange (LSE).
The main shareholder is the Romanian state with a 70% stake. The company has extensive experience in the field of exploration and production of natural gas, its history started more than 100 years ago in 1909. Romgaz is doing geological research in order to discover new gas fields, produces methane by exploiting the deposits in the company's portfolio, deposits underground natural gas, performs interventions, capital repairs and special operations on wells and provides professional servicestechnological transport.
From 2013, Romgaz expanded its field of activity by assimilating the Iernut thermal power plant, thus becoming a producer and supplier of electricity. (rbj/27.03.2018)

OMV Petrom invests 5 mln euro in modern laboratory for testing fuel quality at Petrobrazi

By rbj

OMV Petrom, the largest oil and gas producer in South-Eastern Europe, announced on June 14th the inauguration of a modern laboratory test center for fuel quality control at Petrobrazi refinery. The modernization of the laboratory located near the entrance of the Petrobrazi refinery required investments of approximately EUR 5 mn, including the relocation of the existing laboratory equipment from the old facility.

The new test center has three laboratories for petroleum products testing and one laboratory for water-environment tests. At the test center at Petrobrazi refinery, the most relevant quality characteristics of fuels are tested on a continuous basis.

“Gasoline and diesel are, in fact, mixtures of hundreds of hydrocarbons and tens of other products, to precise recipes. Fortunately, Romania does not have a problem with fuel quality and every client at OMV or Petrom filling stations knows he or she can rely on our fuels. But, in order to reach this high level of quality, there is a lot of work behind the scenes, billions of euro in investment, and laboratories, like this one, which perform thousands of tests to ensure the quality of the products that come out of the refinery,” said Neil Anthony Morgan, OMV Petrom Executive Board member responsible for Downstream Oil.

The most important quality characteristics of fuels are tested in the laboratories; for example, the gasoline octane number and the diesel cetane number. These characteristics are relevant for the power that fuels transmit to the engine. For testing fuel power, Octane Number Research tests are performed to measure gasoline detonation properties compared to a standard reference substance. Also, motor tests for octane number are performed in the center, which test gasoline in conditions closer to real-life. Other quality tests for fuels performed by the laboratory aim to check the water content, the sulphur and other metals or gums content, or the filterability temperature of diesel – which show the lowest temperatures at which diesel engines can work without any problems.

Around 150,000 laboratory tests are performed annually in the test center in Petrobrazi. After privatization (2005-2016), investments in the Petrobrazi Refinery have totalled EUR 1.2 billion, of which around EUR 600 million was invested for the modernization program which took place between 2010 and 2014.

With a refining capacity of 4.5 million tonnes per year, Petrobrazi can process the entire crude production of OMV Petrom in Romania. The refinery currently has an 11.5 Nelson Index, the largest in the region, capable of processing a large variety of crude.

OMV Petrom is the largest integrated oil and gas group in South-Eastern Europe, with annual oil and gas production of approximately 64 mn boe in 2016. The Group has a refining capacity of 4.5 mn tonnes/year and operates an 860 MW high-efficiency power plant and a 45 MW wind park. The group is present on the oil products retail markets in Romania and neighbouring countries through 783 filling stations, end 2016, under two brands – Petrom and OMV.

OMV, one of Austria’s largest listed industrial companies, holds a 51.01% stake in OMV Petrom. The Romanian state, via the Ministry of Energy, holds 20.64% of OMV Petrom shares, Fondul Proprietatea holds 12.57%, and 15.79% of shares are traded as free float on the Bucharest Stock Exchange and London Stock Exchange.(rbj/15.06.2017)

BSOG awards drilling rig contract for two offshore wells in the Black Sea

By rbj

Black Sea Oil & Gas SRL (BSOG) together with its co-venture partners announced the awarding of a contract for the drilling of two offshore exploration wells located in the XV Midia Shallow Block, Romanian Black Sea continental shelf, to the local offshore drilling services provider GSP Offshore SRL (GSP).

The cantilever-type jack-up drilling rig ‘GSP Uranus’ has been contracted by BSOG for the drilling of the two exploration wells in water depths up to 100m scheduled to commence in Q4 2017. Auxiliary services such as aviation, logistics and offshore service vessels to support the drilling operations have also been contracted with GSP.

“The Midia Block Concession Holders are targeting prospects that not only could add to the resource base of the Concession Holders but, more importantly, could feed the Midia Gas Development Project currently consisting of the Ana and Doina discoveries that is currently heading towards development approval,” Mark Beacom, BSOG Chief Executive Officer, stated.

BSOG is currently obtaining all the approvals required to develop the Midia Gas Development Project. These approvals include NAMR and ANRE approvals, environmental and construction approvals and authorizations from local and national authorities, Transgaz approval as well as shareholder and partner approvals. Although there are many regulatory challenges ahead the partner group is targeting obtaining these approvals in 2017. Once this has been achieved then it will take a further 2 years to build the offshore platform, drill the development wells, lay the offshore and onshore pipelines and construct the Gas treatment plant.

Black Sea Oil & Gas SRL, wholly owned by Carlyle International Energy Partners, is a Romanian based independent oil and gas company, targeting exploration and development of conventional oil & gas resources. The company’s current portfolio is made up of XV Midia Shallow Block and XIII Pelican Block concession in the Romanian Black Sea where it is the operator and holds a 65% interest. (rbj/14.904.2017)

OMV Petrom: New innovative Polyfuels technology at Petrobrazi Refinery

*** Investment of approx. 60 million euros *** Polyfuels unit will allow conversion of LPG components into gasoline and middle distillates *** New unit expected to be fully operational beginning of 2019

By Edwig Ban

OMV Petrom, the largest oil and gas producer in Southeastern Europe, announces approx. 60 million euros investment for a new unit to be built in the Petrobrazi Refinery, based on innovative Polyfuels technology developed by French company Axens. The new unit, expected to become fully operational at the beginning of 2019, allows the conversion of LPG components into gasoline and middle distillates, using a catalytic process. "The implementation of the Polyfuels project, which uses innovative technologies to increase gasoline and diesel production, will give us a competitive advantage through increased output of high value products (white products) and a more flexible production structure", said Neil Anthony Morgan, OMV Petrom executive board member responsible for Downstream Oil.

The Polyfuels unit will allow for a shift in refinery production of up to 50,000 tonnes of gasoline and middle distillates from LPG components. The overall refinery capacity will remain at 4.5 million tonnes/year. This new unit is based on the innovative PolyFuel® process, a technology which was developed by Axens, based on 50 years of commercial experience in the field of olefins conversion into fuels, having a track record of being a safe and clean technology.

The project consists of three main reactors, several adsorbers, columns and pumps. Due to the proper selection of main equipment and several heat-exchangers, the unit is designed for high energy efficiency. Construction is set to start in 2017; the unit is expected to be fully operational at the beginning of 2019.

After privatization, investments in the Petrobrazi Refinery have totaled EUR 1.2 billion (2005-2016), of which around EUR 600 million was invested for the modernization program which took place between 2010 and 2014. With a refining capacity of 4.5 million tonnes per year, Petrobrazi can process the entire crude production of OMV Petrom in Romania. The refinery currently has an 11.5 Nelson Index[1], the largest in the region, being capable of processing a large variety of crude oil.

OMV Petrom is the largest integrated oil and gas group in Southeastern Europe, with annual oil and gas production of approximately 64 mn boe in 2016. The Group has a refining capacity of 4.5 mn tonnes / year and operates an 860 MW high-efficiency power plant and a 45 MW wind park. The group is present on the oil products retail markets in Romania and neighboring countries through 783 filling stations, end 2016, under two brands - Petrom and OMV.(rbj/22.02.2017)

Romania has significant gas reserves onshore and offshore

*** A new round of concessions perimeters.will be issued by NAMR

By rbj

Romania has significant reserves of gas in deep areas, both at sea and on land. A new large international company is interested in the Romanian sector of the Black Sea, said Monday Sorin Gal, director general of the National Agency for Mineral Resources (NAMR).

"We are the oldest country reported an oil production. For over 160 years we extracted oil in Romania. .. We have ensured with petrol German war machine, then came another neighbor who carried himself ... But so far managed to extract quantities that were more feasible and easier to extract. for oil and gas. there are still significant resources in the deep sea. at depths of 4000-5000 meters there are reserves very important gas. can be made with expensive technology, "said the official NAMR, a conference on energy issues.

According to him, besides ExxonMobil, OMV Petrom, Lukoil and Romgaz, which have so far invested huge sums in exploration in the Black Sea, another big company is interested in the sector.

"We have significant potential in the Black Sea. They are necessary investments, especially in the deep sea, where the water is between 700 and 900 meters deep. I give you an example: drilling program ExxonMobil and OMV Petrom in the Neptun Block meant one 5 billion dollars, an investment as little has been done in Romania. also, Lukoil and Romgaz have invested over 500 million dollars in two other blocks, so everybody invests large sums of money. We currently interest from a large company do not want to give her name, intending to come to the Black Sea, "continued Gal.

He also said that NAMR waiting two years amend the legislation in the oil sector, to launch a new round of concessions perimeters.

The latest round of concessions issued by the NAMR, the tenth, was begun in 2009 and completed in 2010.

Romania has significant reserves of gas in deep areas, both at sea and on land. A new large international company is interested in the Romanian sector of the Black Sea, said Monday Sorin Gal, director general of the National Agency for Mineral Resources (NAMR).

"We are the oldest country reported an oil production. For over 160 years we extracted oil in Romania. .. We have ensured with petrol German war machine, then came another neighbor who carried himself ... But so far managed to extract quantities that were more feasible and easier to extract. for oil and gas. there are still significant resources in the deep sea. at depths of 4000-5000 meters there are reserves very important gas. can be made with expensive technology, "said the official NAMR, a conference on energy issues.

According to him, besides ExxonMobil, OMV Petrom, Lukoil and Romgaz, which have so far invested huge sums in exploration in the Black Sea, another big company is interested in the sector.

"We have significant potential in the Black Sea. They are necessary investments, especially in the deep sea, where the water is between 700 and 900 meters deep. I give you an example: drilling program ExxonMobil and OMV Petrom in the Neptun Block meant one 5 billion dollars, an investment as little has been done in Romania. also, Lukoil and Romgaz have invested over 500 million dollars in two other blocks, so everybody invests large sums of money. We currently interest from a large company do not want to give her name, intending to come to the Black Sea, "continued Gal.

He also said that NAMR waiting two years amend the legislation in the oil sector, to launch a new round of concessions perimeters.

The latest round of concessions issued by the NAMR, the tenth, was begun in 2009 and completed in 2010.(rbj/2017.02.20)

Romania's Black Sea natural gas production to start in 2018

331111

By rbj

Black Sea Oil & Gas will kick off Romania's Black Sea natural gas production in mid-2018, when Romania is expected to become a natural gas exporter as well, Chairman of Romania's National Energy Regulatory Authority (ANRE) Niculae Havrilet said Wednesday.

"Starting next year, a new important natural gas sources of 4 billion cubic metres a year will be commissioned, namely the natural gas discovered in the Black Sea. Local operators and investors have shown us that next July 1 a new structure will be commissioned. From that moment on, Romania virtually becomes an exporter, because the new structure will generate a surplus that exceeds normal demand in Romania," said Havrilet. He added that Black Sea Oil & Gas has taken under lease two oil blocks on Romania's Black Sea continental shelf — Midia and Pelican.

Havrilet said production in the first year of existence there should be 1 billion cubic metre, to be incremented afterwards to 4 billion cubic metres a year.

"Production in the first year of operation should be 1 billion cubic metre, to be incremented afterward to 4 billion cubic metres against Romania's 2107 consumption of 12 billion cubic metres a year and normal imports of between 500 and 600 million cubic metres a year. The first year's production will virtually cancel out the need for natural gas imports, and, what's more, Romania will have to secure conditions for gar exports for the investor to be able to recoup its investment costs," added Havrilet.

Black Sea Oil & Gas SRL, wholly owned by Carlyle International Energy Partners, is a Romanian based independent oil and gas company, targeting exploration and development of conventional oil & gas resources, according to a press statement released by the company in November 2016. (rbj/2017.02.15)

Romgaz is the largest natural gas producer in CEE

By rbj

It is a joint stock company whose majority shareholder is the Romanian State owning a 70% stake. The company is listed on Bucharest Stock Exchange(link is external) and GDRs are transacted on London Stock Exchange(link is external).

The company has a vast experience in the field of gas exploration and production and a history that began in 1909 with the discovery of the first commercial gas reservoir in the Transylvanian Basin by drilling well Sarmasel.

Romgaz undertakes geologic research in order to discover new gas reserves, produces methane by exploiting the reservoirs included in the company portfolio, stores natural gas in the underground deposits, interventions, workover and special operations on wells and technological transport.

Starting with 2013, Romgaz extended its scope of work by taking over the Iernut thermoelectric power station, and thus it became also electric power supplier. The company dwells on the implementation of the latest technology in geologic exploration, gas production and underground storage, financed from our own or external sources. The company economic and financial position is characterized by the profit constancy and solvency. Thus, Romgaz is one of the state-owned companies that have fulfilled all the conditions for economic rise, turning into one of the most important companies Romania.

Within the borders of Romania, Romgaz is co-titleholder of rights and obligations in 15 petroleum concessions.

In these 15 blocks, Romgaz performs its activity under Joint Operation Agreements concluded with the respective partners, as follows:

11 petroleum exploration and development blocks in the Moesica platform and Getica depression, where Romgaz performs production rehabilitation activities along with Amromco Energy S.R.L;

2 petroleum exploration-development-production concentrated in the North-East of the country, Brodina (exploration area and production area) and Bacau, where Romgaz develops petroleum activities together with:

Aurelian Petroleum and Europa Oil&Gas within Brodina block – exploration area;

-Raffles Energy in Brodina – production area;

-Raffles Energy and Europa Oil&Gas in Bacau perimeter.

2 petroleum exploration-development-production off-shore blocks on the continental platform of the Black Sea (EX 29 EST RAPSODIA and EX 30 TRIDENT) in partnership with Lukoil Overseas Atash B.V.

At the same time, Romgaz cooperates in the Laslau Mare block in the Transylvania basin with Schlumberger Logelco Inc, under an Agreement for association without legal personality, for production rehabilitation by reserve enhancement on Laslău Mare field.

Romgaz is co-titleholder of petroleum rights and obligations in 3 exploration blocks from Slovakia and 2 exploration blocks from Poland. Romgaz holds an interest share of 25% in the three exploration blocks from Slovakia, namely Svidnik, Medzilaborce and Snina, and an interest share of 30% in the two blocks from Poland, namely Torzym and Cybinka.

Romgaz is focused on extending its operations outside Romania by acquiring petroleum rights and obligations for petroleum exploration, development and production operations, with an aim to record the first gas and oil reserves outside Romania.(rbj/2017.01.30)

Deloitte: Romanian energy assets deals, among the most important M&As

By rbj

Retail, FMCG and energy industries have kept the headline transactions of Romanian assets mergers and acquisitions (M&As) in 2016, says Ioana Filipescu, partner of the Division of Corporate Finance, Deloitte.

“The energy market provides among the most important transactions, always being in the top three in the ranking of the largest transactions. In addition to KazMunayGas transaction, which involved Romanian assets but was made outside the country, we had some interesting examples of sales of portfolios, such as those of the Fondul Proprietatea in E.ON subsidiaries, or that of E.ON Distributie to Allianz,” Filipescu told energynomics.ro.

Among the largest transactions of the past year with Romanian energy assets were the acquisition of 51% of assets KazMunayGas by China Energy Company Limited (CEFC), the sale of portfolio of shares held by Fondul Proprietatea (FP) in subsidiaries of E.ON or the 30% of E.ON Distribution by Allianz. Also, FP announced its intention to sell part of the shares in OMV Petrom, and also in its Electrica subsidiaries.

“2016 was an exceptional year for M&A. In 2016 there were transactions worth 3.4 to 4 billion euros in Romania, with almost 23% more than the volume registered in 2015. Of the 85 transactions, three have exceeded 500 million,” Filipescu says.

Average transaction exceeded 40 million, and for 2017 thre M&A market is estimated to reach 3 billion euros, at half of the peak values recorded during the previous economic boom that ended in 2009.

Contact
The Romanian Business Journal
Constantin Radut
Editor in Chief
031726 Bucharest, Romania

+40 725 511 887 office.rbjournal@gmail.com www.rbj.ucoz.ro
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