OMV estimates Neptun Deep will require less than EUR 4 bln in production phase

After the new Offshore Law comes into force, it will take between 9 and 12 months to make a final investment decision and another four years before starting gas production, Austrian group OMV's CEO Alfred Stern explained in an interview with APA news agency, speaking about the Neptun Deep offshore perimeter in Romania's Black Sea.

"The main issue is the tax regime for offshore oil and gas production in the Black Sea. This is important for the project to be economically viable," Alfred Stern said, according to local Economica.net.

"Depending on the final content and the timing of the revised Offshore Law, the final investment decision is expected in H1/23," according to the quarterly report of OMV Petrom.

An investment volume of "less than two billion euros" will be needed, he also said.

OMV Petrom CEO Cristina Verchere explained that this investment estimate regards her company's 50% participation - implying a total volume of EUR 4 bln needed in the production phase.

Stern explained that even after the production at Neptun Deep begins, Austria will not be able to replace the Russian gas it currently uses with future production in the Black Sea - because this offshore gas will be needed primarily in Romania and Southeast Europe.

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