In partnership with Global Data, Globuc – the organizers of the Black Sea Oil and Gas Conference (October 23-24, Bucharest) – have prepared an overview of onshore exploration & production in the Black Sea countries – Romania, Ukraine, Georgia, Turkey, and Bulgaria.
The current onshore reserves in Romania are declining because of intensive onshore exploitation since the beginning of the last century. The majority of sites are mature and fragmented, with production-per-well being one of the smallest in Europe.
There is also no clarity on unconventional production opportunities in Romania. There is no national ban on fracking, however there have been no reports of any sizeable production of unconventional gas after the public backlash against Chevron’s activity in the region in 2015.
The latest big onshore gas field exploration was announced in 2016 by Romgaz, Caragele gas field, with estimated 986 billion cubic feet of gas. Start of development is scheduled for 2020.
Some of international operators in the region, like Mazarine Energy, are choosing to focus on extending the life cycle of onshore fields and maintaining the production activities. In the last three years, Mazarine Energy took over 28 petroleum fields of OMV Petrom and working on rejuvenating them with new technologies and more cost-effective approach.
National Agency of Mineral Resources recently launched an auction for new 22 onshore blocks in Romania, which is expected to bring in new international operators.
During the last ten years Ukraine’s natural gas production has ranged from 20 to 21 bcm/year. At the same period, the share of private producers in total production in from 8% to 20%. 80% of production is controlled by Naftogaz and its subsidiaries (PwC).
Ukraine recently introduced transparent competitive online bidding, which attracted new international companies in onshore oil & gas production.
The results of 9 international PSA tenders, covering 11.400 sq km of onshore acreages, have been concluded this July. Seven companies have been selected as the winners: national UGV grabbed 2 blocks (Buzivska, Betestianska), also it took 2 blocks more together with Canadian Vermilion Energy (Balakliyska, Ivanivska), American Aspect Energy won the tender on sizable Varvinska block, four Ukrainian producers Geo Alliance, UNB, DTEK, and Zakhidnadroservice made the best bids on Sophiivska, Zinkivska, Rusanivska and Ugnivska blocks.
Georgia is comparatively under-explored but has a well-developed infrastructure and a couple of international companies starting to operate in the onshore E&P.
Schlumberger, the world’s largest oilfield service provider acquired a 100% working interest in 3 blocks in Georgia from Jindal Petroleum in 2017 and assumed the role of operator in the region.
Block Energy Plc, the exploration and production company focused on the Republic of Georgia, recently announced announce that production testing at well 16a at its West Rustavi field delivered a test flow rate of an average 1,100 bbl/d versus the previously announced target production rate of 325 bbl/d. The well test indicates an initial well performance that is better than any well drilled in Georgia in the last 50 years.
Most of the onshore oil & gas production in Turkey belongs to state owned companies, with the largest being Turkish Petroleum.
Turkish Petroleum (TPAO) drilled 73 wells in 2018 and up to Feb. 6, the company’s oil production reached 136,000 barrels per day, an all-time high, according to Energy and Natural Resources Minister Fatih Dönmez. “In 2019, the target is to drill 139 wells in Turkey to increase this figure even further,” said the minister.
The majority of onshore gas assets In Bulgaria are now mature and in decline. The only company with onshore production is the Bulgarian operator, Oil & Gas Exploration & Production (OGEP). Although a number of companies hold undeveloped acreage including: TransAtlantic Petroleum, Iskander Energy, Moesia Oil and Gas and Park Place Energy.
Bulgaria banned shale gas exploration back in 2012, following big street protests by environmentalists and revoked a shale gas permit granted to US energy giant Chevron.