The development plans for the Domino and Pelican South commercial natural gas fields, in the Neptun Deep block, have been approved by OMV Petrom and Romgaz.
The project will be sent to the National Agency for Mineral Resources for endorsement. OMV Petrom, the largest integrated energy company in South-Eastern Europe, will be the operator and both companies will have an equal 50% interest in the project. Both OMV Petrom and Romgaz will invest up to EUR 4 billion for the development of the project, which will enable approximately 100 bcm of natural gas to be brought on stream.
“With the final investment decision for the Neptun Deep project, we are opening a new game-changing chapter for the Romanian energy sector. Together with our partner, Romgaz, we are entering the development phase of the first deep water offshore project in Romania. The project will contribute to Romania’s economic growth and will strengthen the country’s energy security. To give an example of the project’s size: the estimated natural gas production is equivalent to ~30 times the current annual demand of ~4,300,000 households. It is also a major step forward for our Strategy 2030 that aims to support the energy transition in Romania and the region.”
Christina Verchere, CEO of OMV Petrom.
“Neptun Deep is a strategic project for Romania and for the region from the perspective of ensuring the natural gas needs and from the perspective of decarbonization. Starting with 2027, we will have a new source of natural gas, which has the potential to significantly increase the country’s natural gas production. We are proud to be part of an innovative project, which will bring significant benefits to the country, in the long term.”
Răzvan Popescu, General Manager of Romgaz.
“The Neptun Deep project enters today a new phase, the decision to invest in the development of the fields in this perimeter is a historic one for all interested parties and will bring undeniable benefits to Romania’s energy security and independence. We remain committed to achieving the objectives of this project and we are confident that the National Agency for Mineral Resources will confirm, as soon as possible, the development plan for the Domino and Pelican South commercial fields in the Neptun Deep block, from which point the development stage of these fields will effectively start.”
Aristotel Jude, Deputy General Manager:.
The development of the Domino and Pelican South offshore natural gas fields requires 10 wells, 3 subsea production systems and associated flow lines, an offshore platform, the main natural gas pipeline to Tuzla and a natural gas measurement station to continue with development. Operating at the highest standards of safety and environmental protection, the platform will be generating it’s own energy and the entire infrastructure will be operated remotely using a digital simulation. The energy consumption will be more efficient at reducing emissions due to the processes that will allow optimum improvement of environmental performance.
The first production is estimated to be active in 2027 with the plateau producing roughly 8 bcm annually (~140,000 boe/d), for around 10 years.
With an area of 7,500 square km and located almost 160km from shore, the Neptun Deep Block in the Black Sea is in waters between 100 and 1,000 meters deep. The exploration activities that have occurred in the Neptun Deep block since 2008 have included two exploration drilling programs and two 3D seismic acquisition campaigns.
OMV Petrom have a refining capacity of 4.5 million tons annually and operates an 860 MW high-efficiency power plant. The Group is present on the oil products retail market in Romania and neighbouring countries through approximately 780 filling stations under two brands – OMV and Petrom. The group also had a group hydrocarbon production of approximately 43 million boe in 2022.
Over 42% of shares from OMV Petrom are owned by Romanian shareholders, of which the Romanian state, through the Ministry of Energy, holds 20.7%, and 21.7% are owned by pension funds in Romania, to which are added almost 500,000 individual investors and other Romanian entities. One of the largest listed industrial companies in Austria, OMV Aktiengesellschaft, holds a 51.2% stake in OMV Petrom, and the remaining 6.4% of shares are held by other foreign investors. Of the total shares of OMV Petrom, 28.1% represents the free float on the London Stock Exchange and the Bucharest Stock Exchange.
OMV Petrom is the largest contributor to the Romanian state budget, with roughly 39 billion euro in taxes and dividends paid between 2005 and 2022. Within the same 17 year period, the company invested approximately 17 billion euro and in 2022, the taxes paid by OMV Petrom ensured 7% of Romania’s tax revenues.
Since 2007, OMV Petrom have included corporate responsibility principles into their business strategy. Between 2007 and 2022, the company had allocated around 120 million euro to develop communities within Romania, focusing on environmental protection, education, health, and local development.
On July 29th, 2020, OMV Petrom announced its support for the guidance issued by the Task Force on Climate-related Financial Disclosures regarding risks and opportunities on climate change. OMV Petrom annually reports on the progress made in implementing these recommendations.
S.N.G.N. ROMGAZ S.A. is the largest natural gas producer and the main supplier for Romania. The company is listed on Bucharest Stock Exchange and GDRs are traded on London Stock Exchange. The Romanian State is the majority shareholder, owning a 70% stake.
ROMGAZ began in 1909 and have extensive experience in the field of gas exploration and production. They undertake geological exploration with the aim of discovering new gas reserves, produces methane by exploiting the reservoirs included in the company’s portfolio and stores natural gas in underground storages. The company also perform well interventions, workover and special operations, and ensures technological transportation professional services. Back in 2012, ROMGAZ increased their workload by acquiring Iernut thermoelectric power plant, by covering the debt of 150 million euro that was created by the previous owner company.
On August 1, 2022, ROMGAZ became sole shareholder of ROMGAZ BLACK SEA LIMITED, following the completion of the sale transaction and the transfer of all issued shares. ExxonMobil Exploration and Production Romania Limited, hold 50% of the acquired rights and obligations under the Petroleum Concession Agreement for the Deep Water Zone of XIX Neptun offshore block located in the Black Sea.
News sourced from OMV Petrom.
