Exxon in talks with Romanian state-owned Romgaz to sell stake in Black Sea gas project

The consultants hired by American group ExxonMobil to prepare the exit from the Neptun Deep offshore gas project in the Black Sea have contacted Romanian state-owned gas producer Romgaz with a proposal, the company’s executive director Adrian Volintiru, told Profit.ro.

Volintiru confirmed that the Romanian company is interested in buying a 15-20% minority stake in the project that ExxonMobil is developing together with OMV Petrom under a 50:50 arrangement.

“We are interested, it is true, but it is a multi-step process that must be undergone before making the final decision,” Volintiru said.

In case Exxon wants to recover the investment made so far in the project, of approximately USD 750 million, Romgaz should pay about USD 220-300 mln for a 15-20% stake. Additionally, another USD 3 billion needs to be invested in the project by 2025, to which Romgaz should contribute around USD 450-600 mln.

This would add to other major investment projects Romgaz has under development or in the pipeline, including the Mintia gas fired power plant, the contribution for its 12% stake in Trident offshore gas project (developed by Lukoil), and the contribution to the LNG terminal Alexandroupolis in Greece.

In 2018, Romgaz investments amounted to RON 1.2 billion (approximately USD 250 million).

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