Dacian Petroleum will buy 40 OMV Petrom fields located in the south of Romania and with a cumulative oil and gas production of approximately 1,700 barrels equivalent of oil (boe)/ day. The value of the transaction is of $17.8 million for 190 active wells, representing about 1% of OMV Petrom’s production in 2019.

The transaction includes the transfer of the wells and the oil infrastructure related to the respective perimeters, as well as of a number of 190 employees, writes Profit.ro.

Out of the agreed total of $17.8 million, Dacian Petroleum has to pay OMV Petrom about $10 million at the conclusion of the transaction, and the rest – during the exploitation of the wells. In addition, Dacian Petroleum needs another $4 million, representing working capital and various costs of the transaction with OMV Petrom, bringing the total short-term financing needs up to $14 million.

Dacian Petroleum company was founded by Ion Popa, former general manager of Petrom until privatization, in the period 1992-2003, together with 3 former top executives of the American oil giant Weatherford.