Romania's Romgaz gets shareholders' permit for taking over half of Neptun Deep perimeter

The shareholders of Romanian state-controlled natural gas company Romgaz approved on Friday, December 10, the management's plan to pay USD 1 bln for the 50% stake of ExxonMobil in the Black Sea Neptun Deep offshore gas project, according to a company note to investors.

The shareholders also approved a EUR 325 mln loan to cover part of the price.

In a statement made last week, OMV Petrom - which holds the other 50% stake in Neptun deep and will become the project operator replacing ExxonMobil - said that the investment would be unblocked no sooner than 2023 unless the new ruling coalition amends the Offshore Law by the end of 2021.

OMV Petrom estimates that it will invest up to EUR 2 bln in this project that will start generating resources in 2026-2027, depending on when the local authorities amend the Offshore Law. Romgaz is expected to contribute the same amount.

Romanian brokerage firm Swiss Capital, one of the biggest operating at the Bucharest Stock Exchange (BVB), revised its price target for the shares of the producer and supplier of natural gas Romgaz (SNG) to RON 46.5, to be revised upward by RON 9.7 upon the completion of the ExxonMobil deal. The RON 9.7 revision is consistent with RON3.74bn (EUR 0.75 bln) in terms of market capitalisation. Romgaz has a market capitalisation of RON 14.3 bln (EUR 2.8 bln).

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