Romgaz Pays $1 Billion to Buy EXXON Shares in Neptun Deep Project in the Black Sea

Romgaz, the state-owned business, will take over the American portion of the Neptun Deep project from Exxon. This was announced in November last year by the Romanian company. According to the specialists’ estimates, in the whole perimeter of Neptune Deep, there is a giant gas field in which there would be one hundred billion cubic meters of gas. Other estimations say there is even more. The whole quantity could ensure Romania’s consumption of natural gas for 10-15 years.

Neptun Deep is the only project in the history of Romania for the deep extraction of hydrocarbons from the Black Sea, in a perimeter that covers 7,500 km2, in which eight exploration wells have already been placed.

ExxonMobil Exploration and Production Romania Limited (EMEPRL), which holds 50% of the acquired rights and obligations assumed by the Oil Agreement for the eastern area, the deepwater site, of the offshore perimeter XIX Neptune in the Black Sea, signed the sale-purchase contract of all shares issued (representing 100% of the share capital) by ROMGAZ S.A. (ROMGAZ).

According to the government, the sale-purchase contract was authorised at the Extraordinary General Meeting of Shareholders of Romgaz S.A. on April 28. The fulfilment of the contract’s preconditions is required for the transaction to be completed.

Romgaz will pay USD 1,060,000,000 for the shares, which can be amended according to the methods outlined in the share sale-purchase deal. The Romgaz Board of Directors had previously approved this sale-purchase agreement on March 22.

Natural gas resources from Neptune Deep are to be extracted starting with 2026

On the occasion of signing the agreements for Romgaz’s takeover of the assets for 50% of the Neptun Deep perimeter from Exxon on May 3, Prime Minister Nicolae Ciuca stated that the resources will be extracted no later than 2026.

According to him, the estimations assure that there will be enough gas for Romania’s neighbours, both in the area and the European Union, in large enough quantities.

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 fulfil its objective to become independent in terms of energy resources, and gas is one of them. Through this act, through which today we will be able to start the process by which no later than 2026 the gases will be extracted from the Neptune Deep perimeter in the Black Sea, together with Romgaz and OMV Petrom, we will fulfil the goal we have assumed, so so that we can provide the necessary gas for our own consumption, and taking into account that the estimates give us guarantees that there are large enough quantities to be able to provide gas for our neighbours, both in the region and in the European Union.

Nicolae Ciuca, Prime Minister of Romania

Romania should be able to use the first quantities of gas from the Black Sea by the end of 2026, making it an energy-independent country for eight years at least.