October 1 (SeeNews) - Romanian natural gas producer Romgaz [BSE:SNG] said it is seeking a 1.6 billion lei ($375 million/ 323 million euro) bank credit to finance the the acquisition of the 50% stake that ExxonMobil holds in Black Sea offshore project Neptun Deep.
The funding will also help Romgaz cover its current working capital needs, the natural gas producer said in a statement filed with the Bucharest Stock Exchange, BVB, on Thursday.
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The financing for which Romgaz is in process of obtaining and assessing the offers from banks is subject to the completion of negotiations with ExxonMobil Exploration and Production Romania Holdings Ltd. (EMEPRL), and on the approval of the transaction and credit by Romgaz's shareholders.
Romgaz announced in June that it signed an exclusivity agreement related to the negotiations for the acquisition.
ExxonMobil is granting Romgaz an exclusivity right for a period of four months, or until October 15, regarding negotiations for the acquisition, Romgaz said at the time.
Romgaz plans to buy 100% of EMEPRL, the company that holds half of the rights and obligations under the concession agreement for petroleum exploration, development and production in XIX Neptun Deep Block.
Romgaz submitted a binding offer to acquire the 50% stake in Neptun Deep in April.
Also in April, Romanian oil and gas group OMV Petrom [BSE:SNP] said that if ExxonMobil accepts the offer submitted by Romgaz, it will join in the project as operator.
EMEPRL and OMV Petrom hold 50% each of the deep water sector of the Neptun Block. EMEPRL is the operator.
OMV Petrom entered a joint venture with ExxonMobil for exploration of the Neptun Block in 2008. The block covers an area of some 7,500 square kilometers in water depths ranging from 100 to 1,700 meters, according to information posted on OMV Petrom's website.
Neptun Deep would be the second offshore gas project in the Black Sea, in which Romgaz would have a participation if it buys a stake in it. Romgaz already holds 12.2% interest in offshore joint venture exploration perimeter EX Trident, according to information available on the company's website. Lukoil Overseas Atash BV, a subsidiary of Russia's Lukoil, holds the remaining 87.8% interest.
Romgaz shares traded 0.86% lower at 34.5 lei ($8.09/ 6.97 euro) on the Bucharest Stock Exchange as at 0914 CET on Friday.
OMV Petrom's shares changed hands 0.44% lower at 0.455 lei as at 0914 CET on Friday.
(1 euro=4.9471 euro)
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