Romgaz enters exclusive negotiations with ExxonMobil for Black Sea project

Energy Trade

Romanian state-controlled gas producer Romgaz has entered exclusive negotiations with US oil group ExxonMobil for its stake in the Neptun Deep offshore gas project in the Black Sea, reported news portal Romania-insider.

The exclusivity agreement is valid for four months, until October 15, 2021, Romgaz said in a note to investors. If the two sides reach an agreement, this could be the biggest transaction ever carried out by a Romania company. ExxonMobil has invested some USD 750 million in the Neptun Deep project so far.

The American group holds a 50% stake in the project and has been running it. ExxonMobil's partner in the project is Romanian oil and gas group OMV Petrom, which holds the other 50%. OMV Petrom will take over the project's management if Romgaz buys Exxon's stake, according to a previous announcement of the two companies.

The Neptun Block in the deepwater sector of the Black Sea covers an area of approximately 7,500 square km (7,895 sq. miles) in water depths ranging from 100-1,700 meters (328-5,577 ft). The two companies invested over USD 1.5 billion between 2008 and 2016 in exploration and appraisal activities in the Neptun Deep block.

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