The biggest Romanian investment in the last 30 years: Romgaz’s Board of Directors approved the signing of the contract to buy 50% of ExxonMobil’s stake in Neptun Deep in the Black Sea

By rbj
The Board of Directors of the S.N.G.N. ROMGAZ SA, on March 22, 2022, approved the conclusion of the sale-purchase contract of all shares issued by (representing 100% of the share capital of) ExxonMobil Exploration and Production Romania Limited which holds 50% of the acquired rights and obligations assumed by Oil Agreement for the eastern area, the deepwater area, of the offshore perimeter XIX Neptune in the Black Sea.
The contract is to be signed after the approval of the Extraordinary General Meeting of Shareholders of S.N.G.N ROMGAZ S.A. convened for 28.04.2022, and the completion of the transaction is conditioned by the fulfillment of the conditions precedent in the contract.
The purchase price paid by S.N.G.N. ROMGAZ S.A. will be $ 1,060,000,000 and can be adjusted according to the mechanisms provided in the share sale-purchase contract.
The General Manager of S.N.G.N ROMGAZ S.A., Aristotle Jude, stated:
“The Neptune Deep project in the Black Sea is a strategic opportunity for Romania, representing an important source of natural gas in order to ensure the energy security of our country. The current geopolitical and energetic context gives the project an even more special significance. We intend to complete the transaction in the second quarter of this year, so that together with the future partner we can move, in the shortest possible time, to the development-operation phase. In this context, we estimate that the first natural gas production resulting from the 19th Neptune perimeter, the deepwater area, will be obtained at the end of 2026 or the beginning of 2027. In the strategy for the development of SNGN ROMGAZ SA, 2021-2030, we included that priority to complete the Neptun Deep transaction as well as investments in other onshore and renewable energy development projects, in the context of European green energy policies ”.
We mention that, on 10.12.2021, the Extraordinary General Meeting of Shareholders of S.N.G.N. ROMGAZ SA approved the transaction and conclusion of the sale-purchase contract of the shares issued by (representing 100% of the share capital of) ExxonMobil Exploration and Production Romania Limited which holds 50% of the acquired rights and obligations assumed by the Oil Agreement for the eastern area, deep water, offshore perimeter XIX Neptune in the Black Sea. As there were subsequent negotiations with the sellers regarding the adjustment of some clauses in the sale-purchase contract, especially in terms of coverage in favor of S.N.G.N. ROMGAZ S.A. of fiscal risks, a new convening of the Extraordinary General Meeting of Shareholders is required.