BLACK SEA OIL & GAS:
UPSTREAM PROJECTS

In partnership with Global Data we have prepared an overview of upstream developments in the Black Sea countries – Romania, Ukraine, Georgia, Turkey, and Bulgaria. Summary of the regions as well based on reports of Wood Mackenzie

ROMANIA

Romania is central and eastern Europe's largest oil and second-largest gas producer.

Local companies Romgaz and OMV Petrom are responsible for over 90% of production, with the majority coming from the onshore. However, two offshore projects will reverse the recent decline in gas production, leading Romania to become a net exporter during the next decade: ExxonMobil’s Neptun Deep and Black Sea Oil and Gas’ Midia Gas development.

  • Capital expenditure forecast (2020-2025) – 5,552.12 US$ mil
  • Crude oil and condensate production (2019) – 77.25 mbd
  • Natural gas production (2019) -1,035.32 mmcfd
  • Crude oil and condensate reserves -235.64 mmbbl
  • Natural gas reserves – 8,699.10 bcf
  • Gas processing capacity (2019) 442.14 mmcfd
  • Refining capacity (2019) 344.80 mbd
  • Petrochemicals capacity (2019) 7.90 mtpa

 

TURKEY

Turkey is a minor oil and gas producer, with overwhelming reliance on energy imports.

In 2018, Turkey’s gas production met just 1% of domestic demand. Although Turkey is the second-largest oil producer in Southern Europe, its oil output covered only 5% of demand. Continued reliance on imports and recent currency depreciation has increased Turkey’s import bill.

  • Capital expenditure forecast (2020-2025) – 14,096.88 US$ mil
  • Crude oil and condensate production (2019) – 57.68 mbd
  • Natural gas production (2019) – 44.34 mmcfd
  • Crude oil and condensate reserves – 237.76 mmbbl
  • Natural gas reserves126.46 bcf
  • LNG Regasification capacity (2019) – 1,520.97 bcf
  • Gas processing capacity (2019)14.99 mmcfd
  • Refining capacity (2019) – 816.00 mbd
  • Petrochemicals capacity (2019)7.28 mtpa

UKRAINE

Mature producer with substantial resources - Ukraine was one of the key suppliers of oil and gas in the Soviet Union.

Liquid and gas production peaked at 300,000 b/d and 6.6 bcfd in the 1970s. Since then, production has been in steady decline because of the maturity of the core assets and a severe reduction in investment after Ukraine’s independence. Unlike other countries in central and eastern Europe, gas production in Ukraine is expected to increase over the next years.

  • Capital expenditure forecast (2020-2025)2,978.11 US$ mil
  • Crude oil and condensate production (2019)46.27 mbd
  • Natural gas production (2019)1,984.14 mmcfd
  • Crude oil and condensate reserves198.20 mmbbl
  • Natural gas reserves9,117.81 bcf
  • Gas processing capacity (2019)1,109.55 mmcfd
  • Refining capacity (2019) – 393.60 mbd
  • Petrochemicals capacity (2019)12.72 mtpa

 

GEORGIA

Georgia is currently a minor oil and gas producer. However, it is a vital transit route for Caspian hydrocarbons.

Oil from Azerbaijan and Central Asia crosses the country, largely via the Baku-Tbilisi-Ceyhan (BTC) pipeline. Georgia also transits Azerbaijani gas and is a key part of the strategic Southern Gas Corridor to Europe. To date, most drilling in Georgia has focused on shallower reservoirs. There is higher-cost potential in deeper reservoirs and offshore (Black Sea).

  • Capital expenditure forecast (2020-2025)2,978.75 US$ mil
  • Crude oil and condensate production (2019) – 0.67 mbd
  • Natural gas production (2019) – 0.58 mmcfd
  • Crude oil and condensate reserves3.11 mmbbl
  • Natural gas reserves1.80 bcf
  • Gas processing capacity (2019) 7.00 mmcfd
  • Petrochemicals capacity (2019)0.40 mtpa

BULGARIA

Bulgaria is a mature hydrocarbon province, with production of both oil and gas now far below historical highs.

Production is dominated by two companies: Oil and Gas Exploration and Production (OGEP) and Worldview Capital-backed Petroceltic. However, a number of Majors and IOCs are actively involved in Black Sea exploration, including Shell, Total, Repsol and Woodside.

  • Capital expenditure forecast (2020-2025) – 1,191.91 US$ mil
  • Crude oil and condensate production (2019) – 1.00 mbd
  • Natural gas production (2019) – 18.53 mmcfd
  • Crude oil and condensate reserves – 3.24 mmbbl
  • Natural gas reserves – 36.86 bcf
  • Refining capacity (2019) – 196.85 mbd
  • Petrochemicals capacity (2019) – 2.52 mtpa