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OMV Petrom, Romgaz to invest up to EUR 4 billion for Neptun Deep's development phase
OMV Petrom and Romgaz will invest up to EUR 4 billion for the development phase of the Neptun Deep project, which will generate a production of about 100 billion cubic meters of natural gas, the start of production being estimated for 2027, according to a press release sent on lastThursday.
According to the source, the Development Plan for the Domino and Pelican Sud deposits in the Neptune Deep perimeter has been confirmed by the Regulatory Authority.
At the same time, the final development plan for the Domino and Pelican Sud commercial fields in the Neptun Deep perimeter was confirmed by the National Agency for Mineral Resources, according to OMV Petrom. Therefore, the Neptun Deep project enters the development phase, which involves both awarding contracts and executing drilling activities and building the necessary infrastructure for natural gas extraction.
"With the confirmation of the Development Plan, the Neptun Deep project passes into the technical implementation phase. We have a dedicated team with decades of experience in developing projects of such importance and complexity. Neptun Deep, the largest natural gas project in Romania's Black Sea area, will contribute to Romania's energy security and the country's welfare. We thank all partners involved in the project, including the Romanian authorities and we look forward to continuing the collaboration," Christina Verchere, CEO OMV Petrom, said.
According to the source, the infrastructure necessary for the development of the Domino and Pelican Sud offshore gas fields includes 10 wells, 3 submarine production systems and the network of associated collector pipelines, an offshore platform, the main gas pipeline to Tuzla and a gas metering station.
"The platform generates its own electricity, operating at the highest standards of safety and environmental protection. The offshore platform, wells and fields will be operated remotely via a digital twin. It allows processes to be optimized and will contribute to improving environmental performance by making energy consumption more efficient and minimizing emissions.
OMV Petrom is the largest energy company in Southeast Europe, with an annual production of oil and gas at group level of approximately 43 million boe in 2022. The Group has a refining capacity of 4.5 million tonnes annually and operates an 860 MW high-efficiency power plant. On the retail petroleum products distribution market, the Group is present in Romania and neighboring countries through approximately 780 gas stations, under two brands, OMV and Petrom.
OMV Petrom is a company in which Romanian shareholders hold over 42% of the shares (of which the Romanian state, through the Ministry of Energy, holds 20.7%, and 21.7% are owned by pension funds in Romania, plus almost 500,000 individual investors and other Romanian entities). OMV Aktiengesellschaft, one of Austria's largest listed industrial companies, owns 51.2% of OMV Petrom's shares, while the remaining 6.4% is held by other foreign investors. Of OMV Petrom's total shares, 28.1% are freely traded on the Bucharest Stock Exchange and the London Stock Exchange.
OMV Petrom is the largest taxpayer to the state budget, with about EUR 39 billion in taxes, fees and dividends paid between 2005 and 2022. During the same period, the company invested approximately 17 billion euros. In 2022, taxes paid by OMV Petrom provided 7% of Romania's tax revenues.
Prime Minister Marcel Ciolacu says that the Neptun Deep project, which involves the extraction of gas from the Black Sea, is a strategic one that will turn Romania into the largest natural gas producer in the European Union.
"This strategic project to Romania will contribute to the country's energy security. Romania will thus become the largest producer of natural gas in the European Union," Ciolacu said in a social media post on Friday.