Black Sea – offshore operations

Black Sea – offshore operations
Constanta, 15 October 2014
CMS Cameron Mckenna SCA | 15 October 2014
Black Sea Jurisdictions and Key Players
CMS Cameron Mckenna SCA | 15 October 2014
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Is the Black Sea the new North Sea?
Black Sea
North Sea

Less than 100 wells drilled

Widely unexplored

Only one major discovery in Neptun
Block- Romania




High risks/high reward region
CMS Cameron Mckenna SCA | 15 October 2014
More than 7000 wells drilled
Industrial focus over 30 years
Declining Production
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Romania Offshore Blocks
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Pelican – Sterling Resources Ltd. + Petroventures
Europe BV + Gas Plus International BV
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Midia - Sterling Resources Ltd. + Petroventures
Europe BV + Gas Plus International BV
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Istria XVIII – OMV Petrom SA
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Neptun XIX 1 – OMV Petrom SA
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Ex – 25 Luceafarul – Petro Ventures Europe BV +
Midia Resources
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Neptun XIX 2 – ExxonMobil Exploration Production
+ OMV Petrom SA
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Ex – 29 Est Rapsodia – Lukoil Overseas +
Panatlantic Petroleum Ltd. + Romgaz
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EX – 30 Trident - Lukoil Overseas + Panatlantic
Petroleum Ltd. + Romgaz
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EX 28 – Est Cobalcescu – Petroceltic + Petromar +
Beach Petroleum
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EX – 27 Muridava – Petroceltic + Petromar + Midia
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Recent Developments

January 2012: ExxonMobil and Petrom started exploration drilling on the Neptun
Block Domino-1, the first exploration well in the deep waters of the Romanian Black
Sea coast which indentified a gas tank with a thickness of 70.7 meters (preliminary
estimate of reserves between 1.5 and 3 trillion cubic feet/42 and 84 billion cubic
meters);

Agreement between ExxonMobil, OMV Petrom and Transgaz relating to the
construction of a pipeline on the former Nabucco project coordinates;

August 2014: OMV Petrom announced the successful drilling of an exploration well
on the Istria Block in the shallow waters of the Romanian Black Sea coast. Marina 1
well identified a deposit of oil in the continental shelf of the Black Sea.
OMV Petrom will evaluate the results of Marina 1 exploration in order to assess if it is
a commercial discovery. Production - could begin in the next 3-4 years.
CMS Cameron Mckenna SCA | 15 October 2014
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Romania – upcoming developments

Round XI
•
The Romanian National Agency for Mineral Resources is preparing round XI for
awarding consessions for 36 petroleum blocks, out of which 8 will be offshore,
including deep water areas.

Legislation amendements
•
An inter-ministerial comission is working on ammending the legislation in the oil & gas
sector. Romania is expected to have a different system of royalties depending on
exploitation area (onshore, offshore shallow waters, offshore deep waters) and a
separate system for shale gas.
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Bulgaria

Largest 3D seismic survey in the Black
Sea and in OMV´s company history of
7,740 sqkm completed in 2014;

Gas
production
concessions
(
Petroceltic): Galata, Kaliakra, Kavarna
and Kavarna East;

The internal production represents
approximately 15% of the gross domestic
consumption.
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Turkey

The Black Sea may also hold significant oil production potential for Turkey. The
Turkish national oil company, TPAO, has increased its exploration activities in the
Turkish portion of the Black Sea, which could hold between 7 and 10 billion barrels of
oil. The offshore area is being explored by TPAO, in joint ventures with ExxonMobil
and Petrobras. TPAO's short-term goal is to develop the resources situated in the
Black Sea and begin commercial production in the Black Sea by 2016.

At the moment, the Blue Stream pipeline
under the Black Sea supplies Turkey with
Russian gas (Turkey's own gas needs are
met by Russia and, to a lesser extent, Iran)
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Strategic importance of the Black Sea
 South Stream
 Azerbaijan – Georgia – Romania – Interconnector (AGRI)
 Other routes of pipelines (projects)
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South Stream – potential routes
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AGRI proposed route
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Other possible pipelines
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Thank you!
Varinia Radu
Partner, CEE Head of Oil & Gas
[email protected]
Mobile: +40 72 255 1216
Loredana Mihailescu
Partner, Head of Energy in Romania
[email protected]
Mobile: +40 75 212 75140
Tel:
Tel:
+40 21 407 3870
CMS Cameron Mckenna SCA | 15 October 2014
+40 21 407 3876
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