OMV to give up Siberia project if starting production at Neptun Deep in Romania

Austrian group OMV is preparing to adopt a final investment decision on the Neptun Deep offshore project in Romania’s Black Sea next year, said OMV CEO Rainer Seele.

He pointed to “encouraging” developments in Romania, where the Government seems determined to start the parliamentary procedure to amend the Offshore Law, and Romgaz submitted a binding offer to acquire ExxonMobil’s subsidiary, which owns 50% of the project.

OMV has repeatedly deferred the investment decision in the project, amid regulatory issues generated by the Offshore Law that all the oil companies involved in Romania’s Black Sea project expect to be amended.

If a favorable investment decision is adopted in the Neptun Deep project is made, OMV will consider giving up the option to acquire a 24.9% stake in the Gazprom project intended for the development of blocks 4 and 5 of the Achimov formation, part of the Uregoy gas field in Siberia, OMV’s CEO Seele said.

However, Profit.ro notes that Seele invoking Neptun Deep in the context of analyzing the opportunity to acquire the 24.9% stake in the Gazprom project can only be a pretext to avoid signing the rather expensive contract with the Russians.

Following the acquisition of Borealis just before the outbreak of the pandemic, OMV has problems financing planned projects, particularly one such as Achimov 4/5 that would cost USD 1 bln, according to Profit.ro.

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