June 21 (SeeNews) - Romania's natural gas producer Romgaz [BSE:SNG] and oil and gas group OMV Petrom [BSE:SNP] said on Wednesday that they will invest up to 4 billion euro ($4.36 billion) in the development of the Neptun Deep offshore gas project.
Neptun Deep will supply a total volume of approximately 100 billion cu m (bcm) of natural gas, with the earliest anticipated delivery date being 2027, Romgaz and OMV Petrom said in a joint statement.
The exploitation of the Neptun Deep resources will make Romania the largest gas producer in the European Union, the companies said.
"The project will contribute to Romania’s economic growth and will strengthen the country's energy security. To give an example of the project’s size: the estimated natural gas production is equivalent to around 30 times the current annual demand of around 4.3 million households," said Christina Verchere, CEO of OMV Petrom.
The two companies have approved the development plan for the Domino and Pelican South commercial gas fields in the Neptun Deep block and will submit it for approval to the National Agency for Mineral Resources. Romgaz and OMV Petrom each have a 50% interest in the project.
The Neptun Deep block in the Black Sea has an area of 7,500 sq km and is located at about 160 km from the shore. Since 2008, seismic acquisition campaigns and exploration drilling programs have been carried out at the site. Once production will reach the plateau stage, Neptun Deep will output 8 billion cu m of gas for almost 10 years.
Romgaz shares traded 0.12% higher at 42.35 lei ($9.32/8.53 euro) as of 1019 CET on Wednesday on the Bucharest Stock Exchange. OMV Petrom's shares changed hands 0.41% higher at 0.4940 lei as at 1021 CET.
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