Romania’s Govt. eyes Exxon’s 50% stake in Neptun Deep offshore block

Romanian state-controlled gas producer Romgaz plans to purchase from US group ExxonMobile the 50% stake in the Neptun Deep offshore gas perimeter, according to a plan sketched by the Government and confirmed by the minister of economy and energy Virgil Popescu.

Polish state-controlled oil and gas company PGNiG has pulled out of the project, Popescu said, Economica.net reported.

ExxonMobil holds 50% of Neptun Deep (with OMV Petrom holding the other 50% stake) and is also the perimeter's primary operator. Thus, replacing ExxonMobil in this project will require not only a financial investment but also technological expertise.

However, Minister Popescu estimates on a very optimistic note that the first gas deliveries from Neptun Deep could take place in 2025.

"The investment decision will be made next year, and I am very optimistic [about a positive decision]. It takes another three years, I think, to prepare the gas extraction from the Black Sea," said minister Popescu, who also stated that the new Parliament would undoubtedly amend the offshore law.

Under the Government's scenario, Romgaz must first pay ExxonMobil's 50% stake in the project, then invest, together with OMV Petrom, another EUR 3 billion to start extracting gas from the perimeter. The exploration works have already cost USD 1.5 bln.

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