Lukoil Ready to Invest $1.5B in Romania - Mediafax

BUCHAREST (Dow Jones Newswires), Oct. 21, 2011

Lukoil Holdings will invest around $400 million in hydrocarbon prospecting at Romania's Black Sea platform, with another $1.5 billion available for further works if discoveries are made, the group's vice-president Vladimir Nekrasov said Thursday, news agency Mediafax reports.

"We are ready to invest $1.5 billion to exploit oil and gas reserves in the Black Sea, should we discover any," Nekrasov said in Bucharest.

On Wednesday, the Romanian government ratified concession agreements for exploration of two blocks in the Black Sea platform granted to a consortium comprising Lukoil Overseas and Vanco International.

The licenses are for 30 years and include the rights for exploration, development and exploitation of two maritime blocks with a surface of 1,000 square kilometers each.

Romania recently signed similar agreements with the companies Petromar Resources, AuDAX Resources, Petro Ventures Europe, Blackstairs Energy and Moesia Oil & Gas.

According to a document obtained by Mediafax last week, the government issued an ordinance allowing companies that drill in the Black Sea platform to work without construction permits, in a move to shorten the waiting period for companies.

Romania's leading oil company, Petrom, as well as oil giants ExxonMobil and Lukoil are some of the companies set to benefit from the facility.

Copyright (c) 2011 Dow Jones & Company, Inc.


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