June 21, 2024
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Romania: Modifications of the Offshore Law

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Alfred Stern, CEO of OMV Group, parent company of OMV Petrom, will negotiate with the representatives of the Romanian Government the modification of the Offshore Law

OMV Petrom sued the state at the International Court of Arbitration (ICC) in Paris, claiming that certain provisions of the Offshore Law impose some limits on the way the company can use natural gas produced in the Black Sea

Christina Verchere, CEO of OMV Petrom, said that she believes that the solution can be found. She said that the Neptun Deep gas project is moving forward regardless of what happens with the arbitration process, adding that the project timeline will not be impacted at all.

In August, OMV Petrom said that the Neptun Deep offshore gas project, which the company develops in cooperation with natural gas producer Romgaz, had entered the development phase after it received regulatory approval. The development phase includes the execution of drilling activities and construction of the infrastructure necessary for the extraction of natural gas, with the first production estimated for 2027.

OMV Petrom and Romgaz will invest up to 4 billion euros in the project’s development phase, which will enable some 100 billion cubic meters of natural gas to be brought on stream. The infrastructure will consist of ten wells, three subsea production systems and associated flow lines pipelines, an offshore platform, the main natural gas pipeline to Tuzla and a natural gas metering station. 

OMV Petrom and Romgaz each hold a 50% stake in the project, with OMV Petrom also being the project’s operator.

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