Romania's Romgaz signs agreement to buy 10% in Exxon, OMV Petrom's Black Sea petroleum joint venture

Romania's oil and gas company OMV Petrom and its partner Exxon Mobil signed an options contract with Romanian state owned Romgaz to participate in petroleum operations in the deepwater portion of the Midia Block in the Black Sea offshore Romania. Romgaz has the option to purchase 10 percent of the participating interest in Midia Deep, from Exxon and OMV Petrom. Romgaz’s option is triggered by a previous becoming effective and an announcement of a commercial discovery. Exxon Mobil and OMV Petrom signed a previous agreement in October 2012 with Sterling Resources Ltd. and Petro Ventures Europe B.V. for the purchase of an 85 percent interest in the hydrocarbon exploration and production rights to a portion of the Midia Block in the Romanian Black Sea. The agreement is not yet effective and is subject to several conditions which are in the process of being fulfilled, including approvals from relevant authorities. When the transfer becomes effective, Exxon and OMV Petrom will each have 42.5 percent, and Gas Plus International B.V., an existing co-title holder, will maintain its 15 percent interest. “The signing of this option agreement allows the expanding of our operations in the Black Sea in order to reach the company’s strategic objective to increase its portfolio of resources and reserves,” said Corin Cindrea, General Director Romgaz. Exxon Mobil will be the operator of the petroleum operations in the deeper water portion of the Midia Block. Together with OMV Petrom, Exxon has activities in the Romanian sector of the Black Sea where the two companies announced a gas discovery earlier last year. OMV Petrom is Romania's largest oil and gas company, with a turnover of EUR 5.3 billion in 2011, while EBIT (earnings before interest and taxes) was EUR 1.16 billion. It is majority owned by Austrian company OMV. editor@romania-insider.com (photo source: OMV Petrom)