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OMV Petrom might drop Neptun Deep project in Romania unless Offshore Law is amended

BLACK SEA
OIL & GAS

OMV Petrom might drop Neptun Deep project in Romania unless Offshore Law is amended

The Neptun Deep offshore gas project in Romania will undergo a new postponement, because of ExxonMobil’s intention to sell its 50% stake in this project, said OMV CEO Rainer Seele, Romania Insider reports.

He stressed that the sale of ExxonMobil's stake is still in a preliminary stage and no new partners have emerged yet. OMV Petrom owns the other half in the Neptun Deep project.

This is the latest of a series of delays caused by changes in the regulatory framework namely tax hikes under the emergency ordinance (OUG) 114/2018, that have been abrogated in the meantime, and the new Offshore Law, also adopted in 2018, which is expected to be amended.

Speaking of the concerns regarding the existing legal framework in Romania and its impact on the Neptun Deep project, Seele said that they are currently “somewhat alleviated” by the abrogation of OUG 118 provisions and that the final investment decision might be taken within a year after the Offshore Law is amended.

We need changes to the Offshore Law. In the absence of amendments to the offshore law, for the first time I am afraid that we will move from "when" to "if". And this would be a huge loss for Romania.

Christina Verchere, OMV Petrom CEO

OMV Petrom will pay € 27 million to its parent-group for taking over OMV Offshore Bulgaria, which owns a 30% stake in the Han Asparuh offshore perimeter in Bulgaria’s Black Sea waters, which is adjacent to the Neptun Deep perimeter.

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