The Rompetrol Group, through its Exploration and Production Division (Upstream), will start workover and completion of the natural gas storage in Golesti (Argeş) in about 3 months, investment that could exceed $27 million for the next four years.
The decision follows the signing on June 1st, of the concession agreement with the Natural Mineral Resources Agency (ANRM), by which Rompetrol became holder of the exploration-development license for the above-mentioned field.
The license is valid for maximum 20 years, and upon expiry the bearer of the license can extend it for 5 consecutive years. The field has about 4.5 square km and is located in the vicinity of the national natural gas distribution network, 5 km from Piteşti.
“The Goleşti facility was selected mainly for experimenting and developing an underground gas storage facility. The workover and completion of the 5 production wells can bring additional data regarding the energetic and production potential of the field. These data represent the technical support for decision and strategic development”, said Serghie Mihalache, Director General - Exploration and Production Division, the Rompetrol Group.
The programme set by Rompetrol for the exploitation-development of the field consists in two major stages. The first will be developed over a 2 years period and consists in wells workover and evaluation of the production potential. The investment for this phase is about $500.000.
According to the results, Rompetrol will further on decide to initiate the next stage, estimated at about $2 million. At that stage, Rompetrol shall continue exploration development, by revamping the production, collection, transportation and trading of new gases facilities, an estimated reserve of 20 million cubic meters.
At the same time, the Group’s strategy includes the development of an underground gas storage project. Its capacity shall be 120 million m/cycle – in a first stage, with potential to increase to 150 million m/cycle. For the completion of this project Rompetrol intends to invest about $25 million over the next 5 years.
According to the exploration, development and exploitation concession agreements signed with ANMR, the Upstream Division of the company holds since 2004 the license for two exploration fields : Zegujani and Satu Mare, and since 2005, for another 3 similar fields, transferred from Forest Oil: Greşu, Nereju and Focşani.