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June 30, 2022
ECONOMY ENERGY

Exxon Mobil to sell its Romanian upstream unit to Romgaz. PM Ciuca: Neptun Deep perimeter gas to be extracted no later than 2026

The deal with Romgaz includes all shares in Exxon Mobil Exploration and Production Romania along with interest in the XIX Neptun Block offshore Romania

Exxon Mobil Corp said on Tuesday that it will sell its upstream unit in Romania to the gas producer Romgaz for over one billion US dollars, as the oil major focuses its investment on assets with a low cost of supply, according to the Reuters news agency.

Exxon has been present in Romania’s upstream sector since November 2008, when it acquired an interest in the deepwater Neptun Deep block in the Black Sea.

The deal with Romgaz includes all shares in Exxon Mobil Exploration and Production Romania along with interest in the XIX Neptun Block offshore Romania.

The company expects the deal to close in Q2 2022

 

PM Ciuca: Neptun Deep perimeter gas to be extracted no later than 2026

 

Prime Minister Nicolae Ciuca said on Tuesday, on the occasion of the signing of the assets takeover documents by Romgaz from Exxon for 50% of the Neptun Deep perimeter, that the gas will be extracted no later than 2026.

According to him, the estimates give guarantees that there are large enough quantities to be able to supply gas to our neighbours, both in the region and in the European Union.

“It is the activity that has been prepared so that we can continue the steps taken by the Government in order to be able to develop everything that means the capacity of the Romanian state to fulfill its objective of becoming independent in terms of energy resources, and gas is one of them. By 2026 the gas will be extracted from the Neptun Deep perimeter in the Black Sea, together with Romgaz and OMV Petrom, and we will meet our goal so that we can provide the necessary gas for our own consumption. The estimates give us guarantees that there are large enough quantities to be able to supply gas to our neighbours, both in the region and in the European Union,” the prime minister told the ceremony at the Victoria Palace.

Nicolae Ciuca requested that Romgaz, together with OMV Petrom, start the investments “as soon as possible”, so that the gas extraction will take place “at least” by the assumed term, that is the end of 2026.

“Practically, through what will be achieved, we will ensure the development of our own capacities, so that we can be in line with what we have assumed through the offshore bill that we submitted last month to Parliament and we ensure this way also stability and predictability of the entire energy field in Romania,” he mentioned, according to Agerpres.

The ceremony at Victoria Palace was attended by the Minister of Energy, Virgil Popescu, and David Muniz, US interim chargé d’affaires in Romania.

Romgaz, the largest natural gas producer in Romania, has signed the sale-purchase contract of all shares issued (representing 100% of the share capital) by ExxonMobil Exploration and Production Romania Limited (EMEPRL) which owns 50% of the acquired rights and from the obligations assumed by the Oil Agreement for the eastern area, the deep water area of the offshore perimeter XIX Neptun in the Black Sea.

According to a press release sent by the Government, the sale-purchase contract was approved at the Extraordinary General Meeting of Shareholders of Romgaz on April 28. The completion of the transaction is conditioned by the fulfillment of the pending conditions in the contract. The purchase price paid by Romgaz will be 1,060,000,000 dollars, and can be adjusted according to the mechanisms provided in the share sale-purchase contract. Earlier, on March 22, Romgaz’s Board of Directors approved this sale-purchase agreement.

 

Photo: www.omvpetrom.com

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