OMV Petrom signs contract for transport of Neptun Deep offshore gas

Romanian oil and gas company OMV Petorm (BVB: SNP) signed with the national gas transport system operator Transgaz (BVB: TGN) the contract for the natural gas to be extracted from the offshore perimeter Neptun Deep, the company announced.

The agreement was concluded for the period September 2026 to September 2042.

Taking into account the transmission tariffs applicable at the current date, the value of the contract is estimated at EUR 276 mln. Based on this, Transgaz will begin work on the infrastructure needed.

With a current estimated value of approximately EUR 478 mln (VAT included), the project consists of constructing the 308.3 km gas transmission pipeline Tuzla-Podisor to connect the Black Sea available gas to the BRUA corridor, thus enabling the transmission of gas through the existing interconnections.

The signing of the contract between OMV Petrom and Transgaz took place after the successful completion of the incremental capacity booking process for the entry/exit point to/from the Tuzla NTS.

"Today, we took an important step together with our partners. We believe the Black Sea has significant potential for natural gas production, and Neptun Deep is a strategic project for OMV Petrom and Romania. It is at the heart of our 2030 strategy and will play an essential role in Romania's energy security. We are planning the final investment decision for mid-2023, with production set to begin in 2027," stated Christina Verchere, CEO of OMV Petrom, quoted by Bursa.ro.

OMV Petrom became the operator of the Neptune Deep perimeter in August 2022. At the end of 2022, the company submitted the commercial discovery declaration for the deposit. Currently, the company is progressing with the tender procedure, authorization and other technical topics.

(Photo source: Facebook/Guvernul Romaniei)