OIL and gas firm Sterling Resources hailed a new era yesterday after moving into one of Aberdeen’s most prestigious office buildings and announcing the relaunch of its Romanian projects.
The firm has moved from Banchory into Gordon House, in Rubislaw Den North, as it sets itself up for expansion after gaining key agreements with the Romanian government over its operations there.
After three years of difficulties in the former Soviet-bloc country, sparked by a change of government, the firm has now had its path cleared to start on plans to develop a major gas field and explore further gas and oil prospects in the Romanian Black Sea.
It is also now closer to first production on its Breagh southern North Sea gas field and continuing assessment work on the central North Sea Cladhan prospect.
Sterling currently employs about 50 people but the new office has room for many more.
Chief executive and president Mike Azancot said: “This resolution we have reached is clearly a turning point.
“I’m just delighted we can move ahead and that the partnership with the agencies in Romania is strong.
“I think, looking ahead, Romania will play a very significant part in our portfolio. We are a developing company now, being involved in Breagh and Cladhan, but we have always been an exploration company.”
Activity in the Black Sea is likely to hot up.
Romania’s government has recently awarded new licences and ExxonMobil is already drilling in 2,000ft of water to the south-west of Sterling’s acreage, opening up the possibility of third-party business through Sterling’s infrastructure, when it is built.
Mr Azancot said: “Our aim is to build up infrastructure, creating gas infrastructure.”
Sterling had been held up by issues over a law on construction permits, approval for partners and getting clarity on the period for which it has its licences.
Those have been resolved, subject to final documentation, and the firm now has licences until 2014, with two three-year options.
“While we must still receive the final documentation on the agreements reached, we can confirm that meetings held in Bucharest herald a new era in our future plans in Romania,” said Mr Azancot
Sterling has two main projects in Romania, the first being the development of offshore gas fields Anna and Doina, containing an estimated 350billion cubic feet about 62 miles offshore in 213ft of water.
The firm hopes to get project sanction by the end of next year and expects it will be about three years after that before first gas.
Exploration of Sterling’s Pelican gas and Midia oil blocks should mean drilling can start next year.
Partnering the company in its Romanian exploration are PetroVentures International (20%) and Gas Plus (15%).
Sterling Resources is listed in Canada and has assets in the UK, onshore and offshore Romania, France and the Netherlands.
With oil production of 7.2 million tons in 1937, Romania ranked second in Europe and seventh in the world.
It was one of the largest producers of oil in World War II and crucial for German war campaigns.
As a result, the centre of oil production, Ploiesti was the subject of an intense bombing raise by Allied Troops forces in August 1943.
After the war, a heavy reconstruction and expansion was carried out under the communist regime.
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