OMV Petrom possibly interested in BSOG offshore project

OMV Petrom (BVB: SNP), the most important oil and gas company in Romania, is reportedly interested in Midia Natural Gas Development (MGD) project, the only new offshore gas exploitation in the Black Sea that is furthermore reportedly open to strategic investors, according to Profit.ro.

As the MGD shallow water project has already reached the production stage (1 bln cubic meters per year) and is not far from OMV Petrom’s Neptun Deep project, the takeover would make sense, economically - depending on the price, though.

MGD’s shareholders, the Carlyle investment fund and the European Bank for Reconstruction and Development (EBRD), are reportedly preparing a “data room” in an attempt to bring strategic investors as partners or buyers for the project.

Profit.ro speculates about the Romanian authorities - whose permit is needed for the transfer of MGD from one investor to another, in part or in whole - being interested in bringing the project under the ownership of a local company (OMV Petrom or Romgaz). But the indebtedness of Romgaz already came under pressure after the takeover of the 50% stake in the Neptun project from ExxonMobil, while OMV Petrom accumulated a large pile of cash after the record profits this year.

The Supreme Council of National Defense (CSAT) needs to clear the deal.

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