Romania's Romgaz signs $1.06 bln takeover contract for Exxon's stake in Neptun Deep

May 3 (SeeNews) - Romanian natural gas producer Romgaz [BSE:SNG] said on Tuesday it has signed the contract for the acquisition of Exxon Mobil's 50% stake in the Black Sea offshore project Neptun Deep for $1.06 billion (1 billion euro).

The purchase price can be adjusted positively with a maximum value of up to $10 million, while the negative adjustment is not limited, Romgaz said in a statement filed with the Bucharest Stock Exchange, BVB.

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In a separate press release, U.S. multinational oil and gas corporation ExxonMobil announced that employees of its Romanian subsidiary will be transferred as part of the sale. The transaction is expected to close in the second quarter of 2022, Exxon added.

“ExxonMobil continues to evaluate our portfolio of opportunities, focusing our investments in advantaged assets with a low cost of supply. Our investments to date have positioned the Neptun Deep project for future success with potential to help increase resource production within Romania and the European Union," ExxonMobil Upstream Company president Liam Mallon said.

"Together with Romgaz and OMV Petrom, we will meet our goal to provide the necessary gas for our own consumption, and, provided that there will be sufficiently large quantities, to provide gas for our neighbors, both in the region and in the European Union," prime minister Nicolae Ciuca said during the live-streamed event.

In March, Romgaz announced that its 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].

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.

Also in March, Austria's OMV, which holds a 51% stake in OMV Petrom, said it will make the final investment decision on the Neptun Deep project next year, pending a new offshore law from the Romanian parliament.

The government submitted the draft bill to parliament in mid-April. The draft bill states the tax regime will not change for the duration of offshore gas projects and enforces a smaller tax for gas sales. Also, it removes export restrictions for natural gas, except in emergency situations.

Romgaz shares traded 1.82% lower at 43.2 lei ($9.2/ 8.6 euro) on the Bucharest Stock Exchange as at 1606CET on Tuesday. OMV Petrom's shares traded flat at 1.33 lei as at 1613 CET on Tuesday.

(1 euro= 4.9469 euro)