OMV Petrom (BVB: SNP), as the operator, and Romgaz (BVB: SNG), as an equal partner in the offshore perimeter Neptun Deep, received from the Romanian government a two-year extension to November 2027 for the exploration period provisioned in the concession contract, according to a government press release. The overall period of the contract, which was supposed to expire in 2045, was maintained.

The two recently announced plans to go ahead with a new exploration well.

Separately, OMV Petrom aims to complete the drilling of the ten production wells on the Domino and Pelican South blocks of the same Neptun Deep perimeter by the end of 2026. Production is expected for 2027.

The government's press release indicates that the amendments to the concession agreement include an obligation for OMV Petrom to waive its court action conducted under the 2021 Arbitration Rules of the International Court of Arbitration in Paris, as well as the files pending before the national courts. 

Profit.ro provided more details about the agreement between the two parties involving court actions and the amendments to the concession agreement. OMV Petrom reportedly does not give up on its rights to derive revenues from the contracts already signed (for Neptun Deep natural gas), rights that might be restricted under acts other than the concession agreement (such as the Offshore Law that gives the state some preemptive rights over the offshore resources, as Profit.ro explained). The environmental cleansing costs and the stability of the taxation regime are also reportedly tackled by the amendments.

OMV Petrom initially requested in October a one-month extension of the deadline for initiating the exploration well project, in order to avoid breaching contractual obligations that would have resulted in losing part of the Neptun Deep concession contract and a EUR 50 million fine. Austrian publication Der Standard reported at that time that the Romanian state was disappointed by the pace of the operations and urged the company to speed up the procedures.

This month, Ziua de Constanta announced that OMV Petrom submitted the environmental documentation to the Constanta County Environment Directorate for the execution of drilling in the deeper offshore area of ​​the Anaconda-1 well, an investment seen by authorities as sufficient for not stripping the company of the rights provided under the concession contract for part of the perimeter. This will analyse the existence of additional gas resources to those already found.

The drilling of this well is an obligation under the concession contract, and OMV Petrom's commitment to drilling was one of the main topics of a discussion on December 2 at the government's headquarters between prime minister Ilie Bolojan and OMV Petrom representatives.

OMV Petrom and Romgaz had already prepared the documents for the new exploration well, at a depth of over 3,000 meters. Two more potential prospects were previously identified in Neptun Deep, called Nard (Nard-1) and Anaconda (Anaconda-1). 

iulian@romania-insider.com

(Photo source: Inquam Photos/George Calin)