RO Govt. wishes Romgaz replace ExxonMobil in major Black Sea gas project

Romania’s new energy minister Virgil Popescu suggested state-controlled natural gas company Romgaz should evaluate the option of taking over the stake held by ExxonMobil in the Black Sea offshore gas project “since there are anyway rumors about Exxon wanting an exit,” Agerpresreported.

This is the largest natural gas deposit in the area, with over 200 billion cubic meters, a quantity that could cover the country’s needs for 10 to 20 years, and involving investments worth USD 1 billion.

Popescu said that he would coordinate with Romgaz management quickly in order to estimate whether this is possible or not.

As regards Exxon’s intentions, Popescu confirmed that there is a letter from the US company received by the ministry, but he said that he has not consulted it.

Notably, the head of the industry committee in Parliament, Iulian Iancu - a member of the Social Democratic Party (PSD) in opposition to the Liberal Government, has recently also supported the idea of having Romgaz involved in the Black Sea gas project by replacing Exxon.

ExxonMobil could sell its 50% share of the rights in the Black Sea perimeter, or the whole company that has the extraction rights in this perimeter, in which OMV Petrom holds the remaining 50%, could go on sale, according to a confidential letter leaked in the media in July.

Romgaz is the biggest gas producer in Romania whereas OMV Petrom is the second-biggest. The Romanian state also holds 20% of OMV Petrom, which is controlled by Austrian group OMV.

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