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BLACK SEA OIL AND GAS

October 2019   |   Black Sea region

OMV optimistic on approving billion euro investment in Romania soon

Posted by GBC on 11-09-2018

At Black Sea Oil & Gas future prospects of offshore projects in Romania will be discussed at the Panel discussion with offshore operators on 23 of October. Check agenda

Austria’s OMV is confident Romania will establish an acceptable framework for its Black Sea exploration project in the autumn and that it will be able to give the green light for a billion euro investment soon after, its upstream chief said.

The exploration of the Black Sea Neptun block is a joint venture between OMV’s Romanian subsidiary Petrom and U.S. major ExxonMobil and includes the first deep-water exploration well in Romanian waters.

In 2012, the firms said they had discovered 1.5-3 trillion cubic feet (42-84 billion cubic metres (bcm) of gas reserves at the ExxonMobil operated Domino-1 well, located around 170 km offshore.

OMV needs reliable framework conditions regarding taxes and royalties before it can give the final nod on such a major investment, Johann Pleininger told Reuters in an interview. “It would be a billion euro investment.”

OMV also needs the guarantee that it can export surplus gas, he said. Unlike other countries in the region, Romania is almost entirely energy independent.

The state imports less than 10 percent of its gas needs from Russia, with the rest produced locally, largely by state producer Romgaz and Petrom.

“I trust the Romanian government to make a sensible proposal that will be accepted by industry,” he said, adding he expected a decision in the autumn. The investment decision could follow “either this year or in the first quarter next year,” he said.

OMV owns a 51 stake in OMV Petrom and the Romanian state holds 20.6 percent.

Source: Reuters

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