Rompetrol Upstream exceeds business plan targets

The Upstream Division - a business unit of Rompetrol Group including Exploration and Production, Drilling and Well Services, posts after 6 months of activity a turnover of more than $21 million – 75% more against the same period of last year. The operational profit exceeds $6 million – a 115% increase compared to the end of June 2006.

The financial results are supported by the increase and diversification of customer portfolio on the already existing markets for work over services, by entering new markets with such services, as well as by consulting projects for prestigious international companies in the field of exploration and production, drilling and work over of oil and gas wells.
 
The current and future strategy of Rompetrol Upstream in the field of exploration and production focuses on continuing the exploration and production activities in the Romanian fields, as well as developing exploration and production activities internationally through acquisitions or partnerships.

„We have an active exploration program on our concessions in Romania, including 240 km of 2D seismic in Greşu, Nereju and Focşani blocks as well as an exploration well in Zegujani area. We rely on the excellent reputation we enjoy in drilling, well interventions and work over services and our main goal is to enter as many foreign markets as possible while diversifying our service range as well as our skills. Our final goal is to turn Upstream into a business unit able to support TRG’s long-term strategy of becoming a fully integrated oil company”, states Peter Hamilton, Vice-President of Rompetrol Upstream.

For the next five years, the activities to be undertaken in the exploration and production in Romania involve total investments of over $32 million. This amount is allocated to 2D and 3D seismic prospecting, data processing and drilling of exploration wells, environmental surveys, reactivation of some old wells and other costs related to the surface infrastructure.

In 2006 the business unit Rompetrol Upstream registered consolidated revenues of over $30 million, a 24% increase compared to 2005 and an operational profit of more than $6 million, 15% more against previous year results. For 2007 Upstream has already exceeded their business plan goal, estimating an increase of the consolidated turnover by almost 50% and of the operational profit by 80%, compared to the previous year.