Romania's OMV Petrom to join Neptun Deep offshore project if Exxon

Romanian oil and gas group OMV Petrom [BSE:SNP] said on Friday that if ExxonMobil accepts the offer submitted by natural gas producer Romgaz [BSE:SNG] for Black Sea offshore project Neptun Deep, it will join in the project as operator.

OMV Petrom and Romgaz are cooperating to unlock the natural gas resources in the Black Sea which are essential for Romania's energy security, for the success of the energy transition and for generating economic growth, the two companies said in a joint press release.

"We are ready to act as equal partners to make this strategic project happen. If our offer is accepted, OMV Petrom will become the project operator," Romgaz general manager Aristotel Jude said.

At the end of March, Romgaz announced that it has submitted a binding offer to acquire the 50% stake that ExxonMobil holds in Neptun Deep.

Romgaz plans to buy 100% of ExxonMobil Exploration and Production Romania Limited (EMEPRL), the company that holds half of the rights and obligations under the concession agreement for petroleum exploration, development and production in XIX Neptun Deep Block.

The binding offer and the conclusion of the transaction to acquire all shares EMEPRL are conditional upon approval by the extraordinary general meeting of shareholders of Romgaz scheduled for May 7.

EMEPRL and Romania's top oil and gas group OMV Petrom [BSE:SNP] hold 50% each of the deep water sector of the Neptun Block. EMEPRL is the operator.

OMV Petrom entered a joint venture with ExxonMobil for exploration of the Neptun Block in the deep water sector of the Black Sea in 2008. The block covers an area of approximately 7,500 square kilometers in water depths ranging from 100 to 1,700 meters, according to information posted on OMV Petrom's website.

Neptun Deep would be the second offshore gas project in the Black Sea, in which Romgaz would have a participation if it buys a stake in it. Romgaz already holds 12.2% interest in offshore joint venture exploration perimeter EX Trident, according to information available on the company's website. Lukoil Overseas Atash BV, a subsidiary of Russia's Lukoil, holds the remaining 87.8% interest.