Romania-based Expert Petroleum competes for PEC by UGV
In November 2019, Romania-based Expert Petroleum Solutions SRL submitted their proposals for participation in the competition by JSC UkrGasVydobuvannya to conclude a PEC (Production Enhancement Contract) for two lots of mature fields in Western Ukraine.
Expert Petroleum’s Co-Founder and COO Michel Louboutin told about this to ExPro during the interview in Kyiv.
“Mature fields market is the biggest market in the Oil and Gas industry and it will continue to grow in the years to come as exploration opportunities and discoveries are going down and the need to be more efficient with the limited resources that we have is becoming more and more important for the industry,” noted COO Michel Louboutin.
According to COO Louboutin, Romania started to implement the PEC concept more than 20 years ago, and PEC definitely contribute positively to stabilize the oil and gas production in the country. “PEC mechanism has proved to be successful with both Romgaz and OMV-Petrom in Romania. OMV- Petrom is a former state-owned company, who has been contracting Expert Petroleum since 2013 though PEC to operate and enhance its old and mature fields, where XP doubled production on some of these fields, reduced the OPEX/boe by 50% (therefore extending the economic life of the fields and the reserves), reduced freshwater withdrawal intensity by 60%, the green house gas intensity (tCo2 eq/toe) by 75% and energy Intensity by a factor of 3 by using stranded gas for power generation and sales of electricity to the national grid,” said Michel.
Further, the top manager of Expert Petroleum explained that under the PEC an operator-investor commits to a production increase guarantee and a minimum CAPEX investment for a certain period of time, usually 5 years, takes over the operating personnel from the asset owner, funds all necessary CAPEX and OPEX during the fulfillment of the PEC.
“We have a long list of fit for purpose new technologies (focused on cased-hole logging, drilling, artificial lift, stimulation, perforation, road construction, etc.) that we introduced in Romania in partnership with local subcontractors who we helped to develop and grow by transferring some know-how” noted further Michel Louboutin, while adding that Ukraine has a large pool of local service companies that could benefit also from this technology transfer and assist Expert Petroleum in their goals.
Speaking on prospective implementation of PEC in Ukraine by Expert Petroleum, COO Louboutin noted that, having visited mature gas fields in Ukraine for the past 3 years, having met with the field operators and having reviewed subsurface data and operating challenges, they found some similarity with Romania’s gas fields they operate now, though each Ukrainian field has its specificity and needs a customized work program.
Earlier it was reported, that besides Expert Petroleum, three other companies passed JSC UkrGasVydobuvannya’s pre-qualification for participation in PEC projects. Those other three included Baker Hughes Ukraine LLC (the subsidiary of the American corporation Baker Hughes, a GE company LLC), the Chinese consortium of companies uniting Energy Engineering Xinjiang Baker and Oil Engineering Zhongshi Shengli, and the Ukrainian-British JV Poltava Petroleum Company.
In April 2019 Ukrgazvydobuvannia informed about re-launch of PEC project on production stimulation of mature and depleted fields in the Western Region.
Expert Petroleum (headquartered in Bucharest, Romania) was founded in 2005 by two Schlumberger managers, Michel Louboutin and David Martinon. The company invests into maximizing potential and extending production life of mature and relinquished oil & gas fields through long-term PECs. Over the last 15 years Expert Petroleum did production enhancement at more than 1,500 wells in Romania and Hungary, and has a vast operational experience in Carpathian areas. As of now, Expert Petroleum is implementing Production Enhancement Contract with OMV Petrom, having been entrusted with the PEC contracts for the 15 years span plus extension, to produce from seven mature oil and gas fields in Craiova county and all mature fields in Timisoara area in Romania). The company has in average increased by more than 70% the production above the baseline production of the group of fields it takes over the operation.
At a current glance, the company has almost 1,000 employees, is operating 25 mature fields, with 1,100 wells drilled , managing 8,500 boe/day.