OMV Petrom, Repsol Sign Exploration Accord on Romanian Fields

Repsol SA, Spain’s largest oil producer and OMV Petrom SA, Romania’s biggest oil company, will sign an accord today to jointly explore four onshore oil and gas fields in Romania.

The two companies plan to invest about 50 million euros ($66 million) in the next two years for exploration drilling in the deep onshore blocks located in the southern Romania, Petrom said in an e-mailed statement. Repsol will hold a 49 percent working interest in the fields, according to the statement.

Petrom has been searching for partners to help it boost output in mature fields in Romania as it seeks to stabilize declining oil and gas production. The Bucharest-based company has a joint venture with Exxon Mobil Corp to search for resources in the Black Sea, where it announced last year a potentially significant discovery in the Neptun block.

“This partnership with Repsol is an important step for evaluating the hydrocarbons potential in the four blocks,” Johann Pleininger, a member of Petrom’s executive board responsible with exploration and production, said in the statement. “One of our major objectives is to unlock the deep onshore exploration potential in Romania.”

Petrom and Repsol will search for resources in areas deeper than 2,500 meters in the Baicoi V, Targoviste VI, Pitesti XII and Targu Jiu XIII blocks, according to the statement.

OMV AG, Petrom’s majority owner, has already signed exploration and production partnerships with Repsol in Bulgaria and Libya, Petrom said in the statement.