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Romgaz to double indebtedness for taking over Black Sea offshore project stake

Romanian state-controlled natural gas company Romgaz confirmed in a note to investors that it initiated a non-binding process with a view to obtain offers for financing in the amount of RON 1.6 bln (EUR 320 mln) or the equivalent in euros.

Notably, the amount of RON 1.6 bln exceeds the total current debts of Romgaz, which amount to about RON 1.35 bln at the end of June 2021.

At the same moment, Romgaz was carrying in its balance sheets bank deposits bought government securities with a total value of over RON 3.2 bln.

The purpose of the would-be RON 1.6 bln loan is “covering a portion of the acquisition of 100% in ExxonMobil Exploration and Production Romania Holdings Ltd and consolidating its current working capital,” according to the company’s statement.

The financing contract will be completed, however, only after the negotiations with Exxon completes, it is approved by Romgaz shareholders, and then the financing loan is endorsed by the shareholders.

Rumours about such negotiations with a syndicate of banks have been circulated by the media.

Also, according to sources familiar with the negotiations, the price envisaged by Exxon for the 50% stake in Neptun Deep offshore perimeter - controlled through the investment vehicle subject of the negotiations with Romgaz, is up to EUR 1 bln.

(Photo: Romgaz Facebook Page)

andrei@romania-insider.com

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

 

BSE

 

 

Romgaz to double indebtedness for taking over Black Sea offshore project stake

Romanian state-controlled natural gas company Romgaz confirmed in a note to investors that it initiated a non-binding process with a view to obtain offers for financing in the amount of RON 1.6 bln (EUR 320 mln) or the equivalent in euros.

Notably, the amount of RON 1.6 bln exceeds the total current debts of Romgaz, which amount to about RON 1.35 bln at the end of June 2021.

At the same moment, Romgaz was carrying in its balance sheets bank deposits bought government securities with a total value of over RON 3.2 bln.

The purpose of the would-be RON 1.6 bln loan is “covering a portion of the acquisition of 100% in ExxonMobil Exploration and Production Romania Holdings Ltd and consolidating its current working capital,” according to the company’s statement.

The financing contract will be completed, however, only after the negotiations with Exxon completes, it is approved by Romgaz shareholders, and then the financing loan is endorsed by the shareholders.

Rumours about such negotiations with a syndicate of banks have been circulated by the media.

Also, according to sources familiar with the negotiations, the price envisaged by Exxon for the 50% stake in Neptun Deep offshore perimeter - controlled through the investment vehicle subject of the negotiations with Romgaz, is up to EUR 1 bln.

(Photo: Romgaz Facebook Page)

andrei@romania-insider.com

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