Amoco Corp. on Tuesday signed a major oil exploration deal with Romania, as the eastern European country said it was enlisting support from a major Western oil company in its search for untapped sources of oil and gas.
”This is our first concession deal in east Europe and the first foreign investment in Romanian oil and gas exploration,” said Amoco Production Co. Vice President David Work.
Under the deal, signed with Romania`s oil exploration and development company, Rompetrol SA, Amoco committed $20 million for five-year exploration rights on a bloc in the Buzau area, 68 miles northeast of Bucharest.
Chicago-based Amoco believes there are good prospects of finding hydrocarbon deposits in the 290-square-mile area in the foothills of the Carpathian mountains.
Cash-strapped Romania, which seeks an upturn in oil output, has offered concessions to foreign companies on 12 onshore areas and three offshore blocks on the Black Sea continental shelf believed to contain hydrocarbons.
In 1991 Romania`s crude oil production fell to 6.791 million metric tons, down 14.3 percent from 1990.
”Romania has been targeted by Amoco as a country where we would like to invest for many, many years from now,” said Clive Fowler, Amoco`s vice president for Europe and the Middle East.
