OMV Gives Final Investment Decision for Gas Project in Romania

PeopleOther ♦ Published: June 22, 2023; 10:21 ♦ (Vindobona)

OMV announced the final investment decision by OMV Petrom, the largest integrated energy company in Southeast Europe, for the Neptune Deep natural gas production development project.

Neptune Deep in Romania's Black Sea is set to become one of the largest natural gas projects in the European Union. / Picture: © OMV Petrom - redaktionelle Verwendung honorarfrei

The project in the Romanian part of the Black Sea is set to become one of the largest natural gas projects in the European Union and is an important milestone in Strategy 2030 to strengthen the natural gas supply as an energy source for the energy transition.

OMV Petrom, as an operator, is developing the gas project in a 50/50 partnership with Romgaz, the largest producer and main supplier of natural gas in Romania. The planned project investments total up to 4 billion euros. The first gas deliveries are expected in 2027, and the estimated recoverable volume is around 100 billion cubic meters (about 700 million boe).

Commenting on the decision, OMV CEO and Chairman of the Management Board Alfred Stern stressed that the Neptune Deep project is a long-standing part of OMV Petrom's strategy and an important strategic pillar of the Group's portfolio under Strategy 2030. He also stressed the importance of the project for Romania, which would become the largest producer of natural gas in the EU and a reliable and secure source of energy for the region. At the same time, the OMV Group's position in the Black Sea region and Southeastern Europe will be strengthened, he added.

The Neptune Deep project comprises the development of the Domino and Pelican South offshore natural gas fields. The infrastructure includes ten wells, three subsea production systems, an offshore platform, a main natural gas pipeline, and a natural gas metering station. All infrastructure is remotely controlled via a digital twin, which helps improve environmental performance and enables efficient energy use.

The Neptune Deep block in the Black Sea covers an area of 7,500 square kilometers and is located in water depths ranging from 100 to 1,000 meters. Exploration of the area began in 2008, and the first natural gas discovery was made in 2012. Exploration and appraisal expenditures to date amount to more than €1.5 billion.

OMV Petrom is the largest integrated energy company in Southeastern Europe and has an annual hydrocarbon production of about 43 million boe. OMV Group holds a 51% stake in OMV Petrom. OMV Petrom is the largest contributor to the state budget, with around EUR 39 bn in taxes and dividends paid between 2005 and 2022. During the same period, the company invested around EUR 17 bn. In 2022, taxes paid by OMV Petrom will represent 7% of Romania's tax revenues.

Since 2007, OMV Petrom has incorporated the principles of corporate responsibility into its business strategy. Between 2007 and 2022, the company has committed approximately EUR 120 million to community development in Romania, focusing on environmental protection, education, health, and local development.

OMV Petrom announced its support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) on climate change risks and opportunities. OMV Petrom reports annually on progress in implementing these recommendations.