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October 28, 2021

OMV and ExxonMobil invest USD 1 bln in Black Sea oil deposit

OMV CEO Gerhard Roiss has downplayed the importance of the announcement according to which Russia has decided to abandon the South Stream gas pipeline project, stating that investments in the Black Sea play a much more important role for OMV, Reuters informs. Pointing out that he was not informed by Gazprom about the scrapping of the South Stream project, Gerhard Roiss stated that “for OMV this is not a big deal.”

Roiss pointed out that extending the South Stream pipeline to Austria would have cost OMV approximately EUR 100 M over three years, compared to the USD 1 bln that OMV and ExxonMobil will invest to explore Romania’s Black Sea continental shelf as part of a project that would produce natural gas by 2020, Agerpres informs.

In 2012 ExxonMobil and OMV Petrom announced the discovery of an important natural gas deposit with the Domino-1 well in the deep-sea part of the Neptun block in the Romanian sector of the Black Sea. According to OMV, the Domino-1 well discovered 70.7 meters of net gas pay, the preliminary estimates pointing to a deposit of 42 to 84 billion cubic meters.

“Europe urgently needs natural gas pipelines,” Roiss stated, adding that the question is whether Russia needs South Stream or is willing to invest in European pipelines.


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