Petrom Group 1Q Hydrocarbon Output Up 1% YY, To 16.78M Boe

05.11.2011 By Andrei Circhelan

Romanian oil group OMV Petrom (SNP.RO) Wednesday reported a 1% year-on-year increase in its first quarter hydrocarbon production, driven by higher gas production in Romania and higher hydrocarbon production in Kazakhstan.

"Group oil, gas and NGL (natural gas liquids) production in (the first quarter) amounted to 16.78 million barrels of oil equivalent, higher by 1% compared to the same period of 2010, as a consequence of higher gas production in Romania and a higher oil and gas production in Kazakhstan. Sales volumes increased by 1% in Q1/11 compared to Q1/10, in line with the production increase," Petrom noted in its financial report for the first quarter.

The Petrom group also includes operations outside Romania.

Total oil, gas and NGL production in Romania amounted to 15.75 million boe, down 1% on the year. Crude oil production dropped 3% on the year, to 7.33 million barrels, because of natural decline, which was not fully compensated by new wells drilled and a workover program, Petrom said.

Petrom produced in Romania 1.3 billion cubic meters of gas in the first quarter, up 3% from 1.28 billion cubic meters in the same interval of 2010.

Crude and gas volumes extracted in Kazakhstan rose 27% in the first quarter, to 1.03 million boe.

Production costs rose 2% in Romania, to $16.28 per boe, compared to $15.96 per boe in the first quarter last year, because of lower production volumes and higher staff and services expenditure, partially compensated by the appreciation of the US dollar versus the leu.

The company is 51.01% owned by Austrian group OMV, while the Economy Ministry holds a 20.64% stake. Fondul Proprietatea (FP.RO) holds 20.11%, the European Bank for Reconstruction and Development holds 2.03% and 6.21% of stock is free float.

Wednesday morning, Petrom shares were up 0.1% at RON0.416 in Bucharest.