Romgaz buys half of Black Sea deepwater gas project

Romanian state-run natural gas producer Romgaz says it has reached an agreement with ExxonMobil to buy its share in an offshore perimeter in the Black Sea.

Romanian state-run natural gas producer Romgaz says it has reached an agreement with ExxonMobil to buy its share in an offshore perimeter in the Black Sea, where significant gas discoveries have been made.

ExxonMobil and OMV Petrom have jointly operated the perimeter since 2008, but changes to Romanian oil and gas legislation delayed a decision to invest in exploiting the natural gas resources found in the Black Sea. Then the US company announced its decision to divest the Romanian assets.

Romgaz, a company in which the Romanian government holds a 70% stake, expressed its intention to buy the ExxonMobil stake in the Black Sea project. Then, in June 2021, the two sides entered exclusive negotiations.

”S.N.G.N Romgaz S.A. and ExxonMobil Exploration and Production Romania Holdings Ltd. finalised exclusive negotiations and reached an agreement on the terms and conditions for the acquisition of all shares issued by (representing 100% of the share capital of) ExxonMobil Exploration and Production Romania Limited,” Romgaz said in a statement sent Tuesday after market close on the Bucharest Stock Exchange.

Romgaz said it expects the transaction to be finalised in the first quarter of 2022. The transaction value was not made public.

Romania wants to change the offshore legislation, but the debate is not progressing quickly. It is one of the largest natural gas producers in the EU, with Romgaz and OMV Petrom jointly covering around 90% of the production.

(Bogdan Neagu | EURACTIV.ro)

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