Romania's Romgaz boosts gas production by 30% from Caragele onshore field

London — Romanian gas producer Romgaz has boosted output from the onshore Caragele field -- the biggest field discovered onshore Romania in the last 30 years -- Romgaz by 30% with the start up of new wells, the company said Friday.

Romgaz produced 5.3 Bcm of gas in 2019, according to preliminary data, around half of Romania's total gas output. Austrian-owned OMV Petrom accounts for the majority of the rest.

The Caragele field was discovered in 2016 and has been producing at around 1 million cu m/d.

Three new wells at the field have now been put into production, increasing daily production by 30% and boosting total Romgaz output by 1.4% in January 2020, the company said.

The new wells are at deeper intervals than previous production wells.

Romgaz CEO Adrian Volintiru said the production increase justified the "significant efforts" of the company to explore at deeper depths at the field in "high risk" conditions.

Volintiru said Romgaz would continue exploration and development work at the field to allow for a "potential increase of the assessed volume of the gas originally in place, as well as the recovery of it."

Romgaz said Caragele has estimated resources of 25-27 Bcm of gas.

Output outlook

Romania's onshore gas potential remains significant and it also has vast untapped offshore acreage, meaning Romania is one of the few parts of Europe that could see gas output rise in the near-to-medium term.

After the UK and the Netherlands, it has the EU's third highest gas production, totaling 9.53 Bcm in 2018, according to data from the latest BP Statistical Review of World Energy.

After the big six EU gas demand markets of Germany, the UK, Italy, France, the Netherlands and Spain, Romania is also one of the largest of the EU's gas markets.

It is effectively self-sufficient in gas -- its production capacity and recent demand levels matching at around 11-12 Bcm/year.

Any shortfall in domestic production has traditionally been made up with imports from Russia.