OMV Petrom Asks RON92M Refunds For Eco-Friendly Works

04.28.2011 By Florentina Dragu

Romania’s leading oil company OMV Petrom (SNP.RO) has requested the state issue refund payments of 91.68 million lei (EUR22.5 million) for environment decontamination works at some of its decommissioned wells, the company said in its financial report for 2010.

Romania's leading oil company OMV Petrom (SNP.RO) has requested the state issue refund payments of 91.68 million lei (EUR22.5 million) for environment decontamination works at some of its decommissioned wells, the company said in its financial report for 2010.

Under its privatization contract signed in 2004, Petrom has pledged to shut down abandoned wells and render the fields environmentally friendly.

"The costs are to be recovered from the Romanian state, because they regard exploration and production activities prior to the privatization process," Petrom said in its report.

Petrom estimates total receivables to decommission abandoned wells and make the related fields eco-friendly will reach to RON1.99 billion (EUR488 million).

Additionally, Petrom is due to receive RON466 million (EUR114.3 million) from the state for "environmental obligations" related to exploration, production and refining operations at Doljchim chemical plant, according to the report.

Thus, the total amount Romania would pay to Petrom reaches around RON2.45 billion (EUR601 million), just below the EUR669 million cashed from Austria's OMV for selling a 33.3% stake in the company back in 2004.

Since its privatization in 2004, Petrom reported total investments of RON23.3 billion. For 2011, the company has scheduled investments of RON4.94 billion.