Huge Gas Field Found in Black Sea

A new deposit of natural gas has been discovered in the Romanian Black Sea waters.

Roxana Vasile, 15.10.2015, 13:15

The major discovery in the Black Sea is already making the headlines in Romania. After exploration works in Romanias territorial waters, which began in 2011, a consortium made up of the Russian company Lukoil Overseas, held by Lukoil group, the American company PanAtlantic and the Romanian Romgaz, identified a natural gas field with a volume put at some 30 billion cubic meters. This is a preliminary figure, pending for the findings of the assessment drilling. If the volume is confirmed, processing works may take at least 7 years and will very likely require investments of billions of US dollars. Dumitru Rotar, the deputy executive manager and exploration-production manager of Romgaz, told Radio Romania that the entire amount could cover Romanias needs for 3 years, considering that the national annual consumption stands at 11 billion cubic meters. Dumitru Rotar:

Dumitru Rotar: “In around 7 years time, the gas from these reserves will probably reach the homes of Romanians. After we start the processing works, we will be able to use these 30 billion cubic meters for 10, perhaps even 15 years. In theory, if we divide the amount of gas in this reserve by the annual consumption figures for Romania at present, we can safely say that it covers the entire need for 3 years.

But does this mean that Romanians may see their natural gas bills reduced? Apparently, its too soon to tell. Here is the deputy executive manager of Romgaz:

Dumitru Rotar: “Developing these reserves means, first of all, incomes for the state budget. For the citizens in general, it means security and reliability in the supply of natural gas. I wouldnt venture to say anything about what the price of natural gas will be in 10 years time.

The area where the 30-billion cubic metre deposit was found is on the Black Sea continental shelf that The Hague court awarded to Romania in 2009 at the expense of Ukraine. Further to the dispute between Bucharest and Kiev, the Romanian state got 9,700 sq km, whose potential, according to experts, is huge. This is also the place where, 3 years ago, OMV Petrom and Exxon Mobile announced another notable find, with preliminary estimates pointing to an 84-billion cubic metre natural gas deposit. A lot of voices argue that the deposits in the Black Sea can secure Romanias and other countries energy independence from Russian natural gas. In fact, in Romania the domestic needs are almost fully covered by OMV Petrom and Romgaz.