Romania's Romgaz borrows 325 mln euro to partly finance takeover of Exxon stake in Neptun Deep

The loan has a five-year maturity from drawdown, Romgaz said in a statement filed with the Bucharest Stock Exchange, BVB.

Romgaz shareholders approved the contracting of the loan in December.

Earelier this month, Romanian prime minister Nicolae Ciuca said that the government will leave half of the dividend due from state-owned Romgaz and nuclear power plant operator Nuclearelectrica with the two companies in a move to support their investment plans.

Also in March, Romgaz announced that its board of directors approved the acquisition which is expected to be completed in the second quarter of the year.

Romgaz's board of directors approved the acquisition of 100% of ExxonMobil Exploration and Production Romania Limited (EMEPRL), the holder of 50% of the rights and obligations under the concession agreement for petroleum exploration, development and production in XIX Neptun Deep Block.

The other half of the rights and obligations under the XIX Neptun Deep Block concession is held by Romanian oil and gas group OMV Petrom [BSE:SNP].

At the beginning of November, Romgaz said it will pay up to $1.06 billion to Exxon Mobil for the 50% stake. Upon signing the share purchase agreement, Romgaz will have to pay Exxon $106 million representing an advance payment/deposit.

OMV Petrom entered a joint venture with ExxonMobil for exploration of Neptun Deep 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.

Earlier this month, Austria's OMV, which holds a 51% stake n OMV Petrom, said it will make the final investment decision on the Neptun Deep natural gas project in the Romanian section of the Black Sea next year, pending a new offshore law from the Romanian parliament.

Romgaz shares traded 0.38% lower at 40.15 lei on the Bucharest Stock Exchange as at 1319CET on Wednesday. OMV Petrom's shares were trading 0.42% higher at 0.4790 lei as at 1321 CET on Wednesday.

(1 euro= 4.9470 euro)