Government extends the agreement with ExxonMobil and OMV Petrom for the Black Sea gas in 2045

By Edwig Ban
The Government today approved the extension by 2045 of the oil agreement between state and ExxonMobil and OMV Petrom for the Neptun Deep offshore gas perimeter in the Black Sea by 2045. The agreement signed in 2000 was valid only until 2030.
“At present, the exploration period is underway, during which the owners explored the XIX Neptune perimeter in a responsible manner, involving a high level of investment that significantly exceeded the work programs on this.
The offshore development stage in deep water involves massive investment in sophisticated technology, with a high level of reserves required to justify the economic development of the deposits, with development costs typically reaching up to several billion dollars. it takes a sufficient period to create offshore production infrastructure and capacities and to exploit the potential trade resources Given the above circumstances, it was appreciated that, in order to maximize the opportunities for obtaining hydrocarbon production in the Neptun perimeter XIX, in a period of time it is essential that the holder of the concession agreement has the appropriate time, so that the duration of the concession is extended by fifteen (15) years. This implies the amendment of the concession agreement by an additional act with the purpose of extending the duration of the concession “, is mentioned in the note on the substantiation of the Government Decision adopted today.
“The extension of the duration of the concession will lead to a total duration of the concession agreement forty-five (45) years”, that is to say by 2045, specifies the substantiation note. ExxonMobil and OMV Petrom previously estimated that gas production in the Neptun Deep perimeter could begin in 2021 and could last even 15 years, or by 2036.