Romanian business media Business review talked to Romgaz CEO, Constantin Volintiru, about the company plans and current stage of its projects. We publish part of the interview, the full version can be found on the Business Review website.
What are Romgaz’s main objectives for the coming years?
Romgaz has expanded its development strategy for the next few years, with the main priorities being to develop its base activity of exploration and production, to harness the production of natural gas and electricity, develop storage activity and expand its business in the region.
Is Romgaz planning to get more involved in the exploration and exploitation of offshore gas in Romania’s exclusive economic area in the Black Sea?
We certainly want to be more involved in the exploration and exploitation of Black Sea offshore gas. We want to develop our existing partnership with Lukoil, as well as identify other opportunities to invest in offshore blocks, and for this we’re already in talks with two other large companies.
In any case, we want to increase our stake in the Black Sea, less by increasing our participation in the Lukoil association, and more by identifying new partnerships where Romgaz will have a larger stake than it does at the moment (12.2 percent).
Romgaz has made steps to expand outside Romania, but currently doesn’t have a significant presence in any other country. Is there still a plan to expand activity abroad – either through investments or through takeovers of foreign companies?
Yes, we still intend to develop our business on a regional level and we’re looking for opportunities where we can use our experience in the production, storage and supply of natural gas. The current regional context and the existing technical and innovative development make us a good candidate to become a partner in the exploitation of these technologies: Natural Compressed Gas (GNC), Liquefied Natural Gas (LNG) and power to gas.
To be more precise, I’d like to go into detail about what power to gas means as a new and innovative technology.
For rigs where deposits are low and that should be closed down because they’re no longer cost-effective, we can install generators that are capable of transforming the gas into electricity, as they are able to work even in very low gas pressure conditions. The only limitation that could exist is the proximity of electricity routes.
Romgaz is facing a natural decline in the onshore gas resources it is exploiting. Can this trend be stopped? Can new onshore gas reserves still be found in Romania?
You’re asking me about things that will happen in the future. I can confirm that my team and I are working today to achieve the things that will shape the future we’re envisioning.
We have confirmed discoveries in the Black Sea, Caragele and others, and more will come, while at the same time we’re making current production more efficient in line with maintaining the exploitation trend that compensates for the natural decline in production.
What impact will OUG 114/2018 have on Romgaz’s business and profits?
The ordinance will lead to a significantly increased consumption of natural gas for a producer the size of Romgaz, but at the same time restrains the size of investments we’ve scheduled on the long term.
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