Romanian Oil Co Petrom Mulls Producing Electric Pwr From Renewable Sources

The targeted projects require over EUR2.3 million investments between 2008 and 2009, the statement also read.

The projects refer to the production of electric power using depleted oil and gas fields, after the evaluation of their geothermal potential, the biogas production from biomass, the market evaluation in view of developing wind power projects, the use of nanotechnology to increase the electric power efficiency, the split-up of the carbon dioxide from gas production and its further reinjection into the deposit to hike the oil-recovery rate, as well as electric power optimization of the future headquarter of Petrom’s Petrobrazi refinery.

"The analysis shall end in 2009, based on which we will make a decision on our further investments. We have not settled a target yet on electric power production from renewable resources," Petrom’s director general Mariana Gheorghe said.

By approaching both natural gas and electric power resources as well as by developing projects in the renewable energy field, Petrom will make the medium-term transition from an oil and gas company to an electric power one, the statement also read.

The final energy demand is seen 46% higher by 2020 compared with 2005, at almost 50% higher imports, compared with 27% in 2005.

Romania’s limited oil and gas reserved could cover the country’s demand for another 14 and 15 years, respectively, at an output rate of 5.2 million tons of oil per year and at 12.5 billion cubic meters of gas.

Romania’s current charcoal reserves should cover the country’s demand for another 229 years, and the uranium ones for 85 years, Petrom said.

"We want to make money from alternative electric power, as the stockholders expect profit. We also ground on a social criterion, namely new job creation, as well as on the environment protection," director with OMV Future Energy Fund Dorothea Sulzbacher said.

Petrom’s first quarter net profit more than doubled to 977 million lei (EUR1=RON 3.666) from RON381 million a year earlier, on higher oil prices and positive restructuring results.

The company posted RON3.72 billion in first-quarter turnover, up 35% from RON2.75 billion in the corresponding period in 2007 due to higher oil prices.

The company eyes a RON11.97 billion turnover in 2008, 2.5% lower compared with RON12.284 billion in 2007, and a net profit of RON2.422 billion, up 36% from RON1.778 billion a year earlier.

Petrom is the largest corporation in Romania and the largest gas and oil producer in Southeastern Europe. In December 2004, Petrom was privatized and became a part of OMV AG (OMV.VI), which is the majority shareholder.