€4bn Neptun Deep offshore gas project in Romania officially set for completion in 2027

OMV Petrom and Romgaz, 50:50 partners in the Neptun Deep natural gas project in Romania’s Black Sea, announced separately that they agreed to begin the development plan aimed at beginning production in 2027. 

The field is expected to cover most of Romania's gas consumption of around 12bn cubic metres (bcm) of gas per year, generating significant export potential. Total development capex is estimated at up to €4bn, to be spent mostly during 2024-2026.

OMV Petrom repeatedly deferred its investment decision for several years until the authorities amended the Offshore Law in mid-2022 in a form closer to what the company expected. In the meantime, OMV Petrom became the project’s operator, as ExxonMobil sold its 50% stake to Romanian state-controlled natural gas company Romgaz. 

“This is a major step forward in our Strategy 2030 execution and will bring a significant shift in our portfolio. Our proposition to shareholders remains growth in investments, increase in profitability and in dividends - all while securing a sustainable long-term business through our energy transition,” stated Christina Verchere, CEO of OMV Petrom. 

Romgaz deputy general manager Aristotel Jude said that “the decision is a historic one for all interested parties and will bring undeniable benefits to Romania's energy security and independence.”

The estimated recoverable volumes are currently at around 100 bcm (700mn barrel oil equivalent or boe). Plateau production is estimated at about 140,000 boe (238,000 MWh) per day for almost 10 years. 

At a price of €38 per MWh (currently prevailing in the market), the value of the recoverable natural gas is worth €44bn. Unit production cost is estimated at an average of $3 per boe (or $1.76 per MWh) for the life of the field.