Romania, Romgaz signs 1 billion-euro contract to take over Neptune Deep project from Exxon, SEE Energy News
Romanian natural gas producer Romgaz announced on Tuesday that it has signed a deal to buy a 50% stake in ExxonMobil in the offshore project Neptune Deep for $ 1.06 billion (1 billion euros).
The purchase price can be positively adjusted with a maximum value of up to 10 million dollars, while the negative adjustment is not limited, Romgaz said in a statement submitted to the Bucharest Stock Exchange, BVB.
In a separate press release, US multinational oil and gas corporation ExxonMobil announced that employees at its Romanian subsidiary would be transferred as part of the sale. The transaction is expected to be concluded in the second quarter of 2022, Exxon added.
“Our investments so far have positioned the Neptune Deep project for future success with the potential to help increase resource production in Romania and the European Union,” said Examon Mobile Upstream Company President Liam Mallon.
In March, Romgaz announced that its board of directors had approved the purchase of a 100% stake in ExxonMobil Exploration and Production Romania Limited (EMEPRL), the holder of 50% of the rights and obligations under the concession agreement for oil exploration, development and production in Block XIX Neptune Deep.
The other half of the rights and obligations under the concession are held by the Romanian oil and gas group OMV Petrom.
In 2008, OMV Petrom entered into a joint venture with ExxonMobil to explore the Neptu Deep block. The block covers an area of about 7,500 square kilometers at depths of 100 to 1,700 meters, according to information published on the OMV Petroma website.
In March, Austrian OMV, which holds a 51% stake in OMV Petrom, said it would make the final decision on investing in the Neptune Deep project next year, pending a new offshore law.
The government submitted the bill to parliament in mid-April. The draft states that the tax regime will not change during the duration of gas offshore projects and imposes a lower tax on gas sales. It also lifts restrictions on natural gas exports, except in emergencies.