November 22 (SeeNews) - Romanian president Klaus Iohannis requested oil and gas group OMV Petrom [BSE:SNP] to speed up the search for hydrocarbons in the Black Sea under the offshore project Neptun Deep, the presidential administration said.
President Iohannis reiterated the strategic importance of the project for Romania and requested the OMV management to start offshore exploitation as soon as possible within the perimeter owned by natural gas producer Romgaz [SNG] and OMV Petrom, considering that the amended offshore bill is now favourable, the presidential administration said in a press release on Monday evening after a meeting of Iohannis with representatives of OMV Group and OMV Petrom
For their part, OMV Petrom representatives reiterated their commitment to make the final investment decision regarding the project in mid-2023, according to the press release.
In September, Romanian media quoted energy minister Virgil Popescu as saying that OMV Petrom should announce its final investment decision "as soon as possible, including by the end of this year", because "more natural gas is needed on the market".
OMV Group CEO Alfred Stern said in March that the company will make the final investment decision on the Neptun Deep project next year, pending a new offshore law from the Romanian parliament.
"With an investment of up to 2 billion euro ($2.05 billion) in Neptun Deep, we expect the block plateau production of about 70,000 barrels of oil equivalent per day, net to OMV for an estimated period of about 10 years," Stern said at the time.
In May, president Iohannis endorsed the new offshore bill expected to speed up the development of major offshore oil and gas projects in the Black Sea, helping the country secure its energy independence.
OMV Petrom holds 50% of rights and obligations under the XIX Neptun Deep Block concession. The company entered a joint venture with ExxonMobil for exploration of the block in 2008. The block covers an area of some 7,500 sq km in water depths ranging from 100 to 1,700 meters, according to information posted on OMV Petrom's website.
On August 1, Romgaz completed the acquisition of Exxon Mobil's 50% stake in Neptun Deep for $1.06 billion.
OMV Petrom's shares were trading 0.23% higher at 0.4450 lei ($0.09/ 0.09 euro) as at 1022 CET on Tuesday on the Bucharest bourse.
Romgaz was trading 0.62% higher at 40.5 lei at 1020 CET on Tuesday.
($=0.9771 euro)
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