Key Projects

Neptun (Romania, OMV 50%)

In cooperation with ExxonMobil as the operator, OMV Petrom continued assessing the commercial and economic viability of the Neptun Deep project in the Romanian Black Sea. Cumulative production from Neptun Deep was estimated at 125–250 (net to OMV). OMV Petrom remains interested in seeing the Black Sea resources developed. However, the final investment decision depends on a range of factors including a stable and competitive fiscal framework and a liberalized natural gas market. Regarding the former, mainly in reference to the Offshore Law, amendments are scheduled to be made by means of a parliamentary process according to public statements. This process will be initiated by the new Parliament elected in December 2020. On the liberalized natural gas market front, some progress was made through replacement of the central market obligation with a natural gas release program.

Other major projects (Romania, OMV 100%)

Despite the difficult environment, some major milestones were achieved in other projects. At the Petromar asset, the rerouting of a section of 2.7 km of the 12” onshore pipeline that connects the offshore Central Platform to the onshore Midia Terminal was successfully completed. In addition, a pilot project for Enhanced Oil Recovery (EOR) was initiated in the Independenta field, at the Moldova asset. This project aims to increase the recovery factors from our mature fields by injecting a mixture of viscous water into the reservoir. So far, encouraging results were achieved, and OMV Petrom is currently analyzing the possibility of extending this technology to other fields in the coming years.

Nawara (Tunisia, OMV 50%)

In Q1/20, OMV managed to successfully start up operations at the onshore Nawara natural gas and condensate field development, thereby achieving commercial natural gas flows despite COVID 19-related restrictions. This meant that the final phase of commissioning and startup of the gas treatment plant and central processing facility had to be performed remotely. Despite the peak production level of 9  (OMV share) already having been achievedin 2020, production had to be shut down for three months due to social unrest in the country, which also affected project close-out activities. The project unlocks South Tunisia’s natural gas resources and supplies urgently needed natural gas, LPG, and condensate to the Tunisian market.

Umm Lulu and SARB (United Arab Emirates, OMV 20%)

Umm Lulu and Satah Al Razboot (SARB) are two offshore oil fields situated in the shallow waters of Abu Dhabi. Pipelines connect both fields to dedicated processing, storage, and loading facilities on Zirku Island. In 2020, the Umm Lulu Super Complex started up in full field mode in April, while the commissioning of the natural gas treatment plant, the wellhead towers, brownfield modification works, and Super Complex performance testing are still in progress, following delays caused by COVID-19. Development drilling is planned to continue until 2023. Production started up at the Umm Lulu and SARB fields in September 2018 and reached an average level of 23 kboe/d (OMV share) in 2020. This was affected by production limitations in connection with the OPEC+ quota. Production from the concession area is expected to increase to 215 kboe/d (43 kboe/d net to OMV) by 2023.

Khor Mor (KRI, OMV 10%)

The consortium develops, produces, processes, and transports natural gas from Khor Mor, a major gas condensate field located in the Kurdistan Region of Iraq (KRI). The consortium plans to increase production by drilling additional wells and by expanding the capacity of the facilities by another 42 kboe/d (thereof 4.2 kboe/d net to OMV). The resulting additional natural gas production will be introduced into the existing Pearl-operated natural gas pipeline to support increasing domestic natural gas demand. In 2020, the engineering, procurement, and construction contract for Khor Mor Train 1 was awarded, but project progress was impacted by contractor force majeure related to the COVID-19 pandemic, resulting in a delay of one year.

Gullfaks (Norway, OMV 19%)

In 2020, the Equinor-operated Gullfaks field delivered strong production volumes thanks to robust natural gas exports. The planned revision stop at Gullfaks A was finalized early in November. The Norwegian authorities approved the plan for development and operation of the Hywind project in April 2020. The wind farm is a pioneering project and a contribution to reducing emissions from the Snorre and Gullfaks oil and gas fields. The offshore wind farm will consist of 11 floating wind turbines with a total capacity of 88 and will meet about 35% of the annual power demand of the platforms. Construction on the wind farm started in Q4/20.

Gudrun (Norway, OMV 24%)

The Equinor-operated Gudrun field continued to produce at a high efficiency level and was only slightly affected by COVID-19 and the OPEC production cuts. Phase 2 of the Gudrun field redevelopment is planned to enable water injection in Q4/21, with ongoing batch drilling and topside modifications to the existing platform. During 2020, two additional infill production wells were also drilled. The first started production in April 2020; the second is scheduled to start in early 2021.

Edvard Grieg (Norway, OMV 20%)

The Edvard Grieg offshore oil field operated by Lundin Petroleum continued to produce above expectations in 2020, due to high production efficiency and increased capacity in Ivar Aasen. Planned maintenance revision stops were completed on time. The Edvard Grieg infill drilling campaign is on track to start in Q1/21.

Aasta Hansteen (Norway, OMV 15%)

Aasta Hansteen continued steady production in 2020, with no major impact from COVID-19. Since September 2020, Aasta Hansteen has reached close to 100% production efficiency on its increased export capacity of around 160  gross.

Wisting (Norway, OMV 25%)

In 2020, the Wisting license partners awarded several contracts for concept studies to further move the project toward a final concept. Operator Equinor and its partners have considered various concepts to determine potential solutions for cost-effective field development and will further develop a floating production unit based on a circular FPSO solution. An important objective for the Wisting project is reducing the carbon footprint of production. The project will study a power-from-shore solution for a circular FPSO. The Wisting project is on track to deliver the plan for development and operation by year-end 2022 to take advantage of the tax incentives introduced in spring 2020.

Hades/Iris (Norway, OMV 30%)

OMV made the Hades and Iris discoveries in 2018. The exploration well found natural gas and condensate in both Hades and Iris. The objective of the 2020 Hades appraisal well was to delineate the 2018 discovery, reduce the uncertainty of the resource estimate, and perform a formation test. The appraisal well phase was concluded as planned in Q3/20. The Hades/Iris project is on track to deliver a plan for development and operation by year-end 2022 to take advantage of the tax incentives introduced in spring 2020.

Yuzhno-Russkoye (Russia, OMV 24.99%)

The second phase of the Turonian development project has been completed at Yuzhno-Russkoye. A total of 45 wells were drilled, and 24 new wells in the Turonian formation started producing. A plateau production extension until 2023 was confirmed.

SK408 (Malaysia, OMV 40%)

In Malaysia, Phase 1 development of the SK408 Gorek, Larak, and Bakong fields was completed by June 2020, increasing production in Malaysia to more than 30 kboe/d in 2020. The development of the Jerun field as Phase 2 of the SK408 development achieved a key milestone, obtaining the final investment decision in December 2020 with first gas planned in 2024. The project is currently pending joint venture partner approval. This development is expected to contribute an additional initial production rate of over 30 kboe/d.

Maui A Crestal Infill (New Zealand, OMV 100%)

Drilling operations on the Maui A offshore platform commenced in October, following an interruption to rig installation and integration due to COVID-19 restrictions. First gas production was achieved late 2020 and drilling operations are continuing for the subsequent wells in the campaign.

Maui B IRF Phase 3 (New Zealand, OMV 100%)

The Maui B IRF Phase 3 infill drilling opportunity targets by-passed natural gas in the Maui reservoir sands, by sidetracking shut-in wells on the Maui B offshore platform. Up to six sidetracks are currently under consideration with a final decision yet to be made.

Pohokura Depletion Compression (New Zealand, OMV 74%)

This project increases well deliverability and reserves recovery thanks to the installation of an electric single-stage centrifugal compressor. First gas was achieved from the Pohokura Depletion Compression project in September. The innovative application of remote working technologies also made it possible to recover time lost during construction due to COVID-19 restrictions.

Toutouwai Appraisal (New Zealand, OMV 40%, SapuraOMV 30%)

Hydrocarbons were discovered in the Toutouwai-1 exploration well during the New Zealand exploration campaign in April 2020.The campaign was curtailed before a full logging and testing program could be executed due to COVID-19 restrictions. An appraisal well is planned for early 2022 to evaluate the commercial viability of the discovery and coordinate further development planning.

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Pearl Petroleum Company Limited
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