Profile picture for user andreich
Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at andrei@romania-insider.com. 

 

 

The Capital Markets News section is sponsored by the Bucharest Stock Exchange 

 

BSE

 

 

Romania’s Romgaz will pay USD 1 bln for ExxonMobil’s stake in Black Sea gas project

Romanian state-controlled gas producer Romgaz (BVB ticker: SNG) will pay USD 1.06 bln to take over a 50% stake in the Neptun Deep offshore gas project in the Black Sea from the U.S. group ExxonMobil.

The company’s board approved the deal on Tuesday, November 2, and the General Shareholders Meeting will vote on it on December 9.

Romgaz will have to pay a deposit of USD 106 mln upon signing the share purchase agreement, according to a notification sent to the Bucharest Stock Exchange.

This is by far the largest takeover deal ever signed by a Romanian company. The transaction is backed by Romania’s Government, which holds 70% of Romgaz’s shares. It comes at a time when Romania is struggling to ensure its energy independence in the context of rising gas and energy prices.

Neptun Deep is by far the biggest gas perimeter in Romania’s Black Sea section, with reserves estimated at between 42 and 84 billion cubic meters. Romania currently uses about 10 billion cubic meters of gas per year.

ExxonMobil holds 50% of the project with the remaining 50% owned by Romanian company OMV Petrom, which is controlled by the Austrian group OMV. Once the deal is completed, OMV Petrom is expected to take over the project’s management.

So far, ExxonMobil and OMV Petrom have invested approximately USD 1.5 bln to explore the Neptun Deep perimeter and assess its economic viability. The two partners have postponed their investment decision due to legislation changes passed by the Parliament under the PSD rule. The Liberals promised to change the offshore law to make it friendlier for investments but haven’t taken any concrete steps in this sense so far.

editor@romania-insider.com

(Photo source: Photo 100664893 © Pichit Boonhuad | Dreamstime.com)

Normal
Profile picture for user andreich
Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at andrei@romania-insider.com. 

 

 

The Capital Markets News section is sponsored by the Bucharest Stock Exchange 

 

BSE

 

 

Romania’s Romgaz will pay USD 1 bln for ExxonMobil’s stake in Black Sea gas project

Romanian state-controlled gas producer Romgaz (BVB ticker: SNG) will pay USD 1.06 bln to take over a 50% stake in the Neptun Deep offshore gas project in the Black Sea from the U.S. group ExxonMobil.

The company’s board approved the deal on Tuesday, November 2, and the General Shareholders Meeting will vote on it on December 9.

Romgaz will have to pay a deposit of USD 106 mln upon signing the share purchase agreement, according to a notification sent to the Bucharest Stock Exchange.

This is by far the largest takeover deal ever signed by a Romanian company. The transaction is backed by Romania’s Government, which holds 70% of Romgaz’s shares. It comes at a time when Romania is struggling to ensure its energy independence in the context of rising gas and energy prices.

Neptun Deep is by far the biggest gas perimeter in Romania’s Black Sea section, with reserves estimated at between 42 and 84 billion cubic meters. Romania currently uses about 10 billion cubic meters of gas per year.

ExxonMobil holds 50% of the project with the remaining 50% owned by Romanian company OMV Petrom, which is controlled by the Austrian group OMV. Once the deal is completed, OMV Petrom is expected to take over the project’s management.

So far, ExxonMobil and OMV Petrom have invested approximately USD 1.5 bln to explore the Neptun Deep perimeter and assess its economic viability. The two partners have postponed their investment decision due to legislation changes passed by the Parliament under the PSD rule. The Liberals promised to change the offshore law to make it friendlier for investments but haven’t taken any concrete steps in this sense so far.

editor@romania-insider.com

(Photo source: Photo 100664893 © Pichit Boonhuad | Dreamstime.com)

Normal
 

facebooktwitterlinkedin

1

Romania Insider Free Newsletters