Romania, OMV Petrom is reportedly interested in the Midia Gas Development project offshore Black Sea

, SEE Energy News

The largest Romanian oil and gas company OMV Petrom is reportedly interested in the Midia Gas Development (MGD) project offshore Black Sea, operated by Black Sea Oil & Gas (BSOG).

According to sources, since the MGD shallow water project has already reached production phase, with estimated production of 1 billion cubic meters of gas per year, and its proximity to OMV Petrom operated Neptun Deep project, the takeover would make sense economically. However, this would ultimately be dependent on the asking price.

Earlier this week, media reported that BSOG, in cooperation with the European Bank for Reconstruction and Development (EBRD), is preparing a data room in an effort to attract possible investors as strategic partners or outright buyers of the project.

The Romanian Government, who will need to approve the possible acquisition, would also be interested to bring another gas project under the ownership of local company (Neptun Deep is jointly owned by state-controlled Romgaz and OMV Petrom). However, recent takeover of ExxonMobil’s stake in Neptun Deep has left Romgaz seriously indebted and it would be highly unlikely that it could finance another takeover, unlike OMV Petrom which achieved record profits this year.

BSOG, owned by Carlyle International Energy Partners and the European Bank for Reconstruction and Development, is a Romania- based independent energy company, targeting offshore development of gas resources. The company’s portfolio is currently made up by the Midia Gas Development Project and two production licenses at Ana and Doina gas fields in XV Midia Shallow Concession, Romanian Black Sea, where it is the operator and holds a 70 % interest.

BSOG operates the concession on behalf of its partners Petro Ventures Resources (20 % stake) and Gas Plus Dacia (10 % stake).