Boston, MA -- (SBWIRE) -- 03/21/2013 -- BMI View: The exploration efforts of ExxonMobil and OMV Petrom in the Black Sea could signal a turning point in Romania's upstream outlook, helping reduce dramatically the country's gas import dependency from around 2018. International oil company (IOC) interest in Romania is now on the rise and, if exploited by the government, could result in much higher investment levels. Romanian Prime Minister Victor Ponta ha said that he supports shale gas exploration in the country, bringing hope to Chevron and other IOCs keen to investigate the country's significant shale gas potential.

The main trends and developments for Romania's oil and gas sector are:

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- Romanian Prime Minister Victor Ponta said in January 2013 that he supports shale gas exploration in the country, although the country plans to make a final decision on drilling once it has confirmation of resources in about five years' time.
- In 2012, Romania imposed a de facto moratorium on the practice of hydraulic fracturing (fraccing). Although the senate rejected an outright ban in July 2012, operators have held back from exploration, apparently in deference to continued public opposition. The new Romanian government does now appear to be shifting its position to a more positive stance, according to IHS Global Insight.
- ExxonMobil and OMV Petrom discovered natural gas with their Domino-1 deep water exploration well in the Romanian sector of the Black Sea, and early estimates of up to 85bn cubic metres (bcm) have been attributed to the prospect. The discovery well in the Neptun block, in water depths of approximately 1,000 metres (m), was drilled to a total depth of more than 3,000m. A 3D seismic programme is being conducted before further drilling takes place to prove-up the block's potential. If successful, first production is unlikely before 2018.
- Romania's government plans an additional tax in 2013 on gas producers, which are enjoying higher profits as a result of the country's energy market deregulation, a draft law showed in January 2013. The tax revenue will subsidise households that are expected to be hurt by rising charges as the European Union's second-poorest state liberalises energy prices, an ongoing process lasting until 2017 for the electricity sector and 2018 for gas.
- Natural gas consumption - estimated 13.4bcm in 2012 - is expected to reach at least 15.9bcm by 2017, then rise further to 18.2bcm by 2022. Romania's gas production is forecast to be no more than 8.6bcm by 2017, resulting in a net import requirement of at least 7.3bcm. However, success in proving up the Domino find in the Black Sea could mean volumes rising towards the end of the forecast period - potentially exceeding 10bcm in 2018 and reaching 17bcm by 2022.

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