Bucharest, August 3, 2023 – OMV Petrom and Romgaz will invest up to 4 billion euros for the development phase of the Neptun Deep project, which will generate production of about 100 billion cubic meters of natural gas, with the start of production estimated for 2027 , according to a statement sent to the press on Thursday.
According to the quoted source, the Development Plan for the Domino and Pelican Sud deposits in the Neptun Deep perimeter was confirmed by the Regulatory Authority.
At the same time, the final development plan for the Domino and Pelican Sud commercial deposits in the Neptun Deep perimeter was confirmed by the National Agency for Mineral Resources, according to OMV Petrom. Therefore, the Neptun Deep project enters the development phase, which involves both the awarding of contracts and the execution of drilling activities and the construction of the infrastructure necessary for the extraction of natural gas.
“With the confirmation of the Development Plan, the Neptun Deep project enters the technical implementation phase. We have a dedicated team with decades of experience in developing projects of such importance and complexity. Neptun Deep, the largest natural gas project from the Romanian area of the Black Sea, will contribute to Romania’s energy security and the country’s well-being. We thank all the partners involved in the project, including the Romanian authorities, and we look forward to continuing the collaboration,” said Christina Verchere, CEO of OMV Petrom.
According to the cited source, the infrastructure required for the development of the Domino and Pelican Sud offshore natural gas fields includes 10 wells, 3 subsea production systems and the associated collection pipeline network, an offshore platform, the main gas pipeline to Tuzla and a gas measurement station .
“The platform generates its own electricity, operating at the highest standards of safety and environmental protection. The offshore platform, wells and deposits will be operated remotely, by means of a digital replica (digital twin). It allows the optimization of processes and will contribute to the improvement of environmental performance, by making energy consumption more efficient and emissions minimization”, the press release states.
OMV Petrom is the largest energy company in South East Europe, with an annual group oil and gas production of approximately 43 million boe in 2022. The group has a refining capacity of 4.5 million tons annually and operates a high efficiency power plant of 860 MW. On the retail oil products distribution market, the Group is present in Romania and neighboring countries through approximately 780 gas stations, under two brands, OMV and Petrom.
OMV Petrom is a company in which Romanian shareholders own over 42% of the shares (of which the Romanian state, through the Ministry of Energy, owns 20.7%, and 21.7% are owned by Romanian pension funds, to which are added almost 500,000 individual investors and other Romanian entities). OMV Aktiengesellschaft, one of Austria’s largest listed industrial companies, owns 51.2% of OMV Petrom shares, with the remaining 6.4% held by other foreign investors. Of the total OMV Petrom shares, 28.1% are freely traded on the Bucharest Stock Exchange and the London Stock Exchange.
The Italian company Saipem will ensure the development of the infrastructure
OMV Petrom signed the main contract, worth 1.6 billion euros, for the development of the Neptun Deep infrastructure, the largest natural gas project in the Romanian area of the Black Sea, the company announced in a statement.
“OMV Petrom, the largest integrated energy company in South-East Europe, signed with Saipem S.p.A. and Saipem Romania SRL (Saipem) a contract for design, procurement, construction, installation and commissioning works, worth approximately 1.6 billion euros”, the quoted press release states.
As part of the contract, Saipem will provide management, design, procurement, manufacturing, assembly, shipping, installation, testing and commissioning services for the marine installations within the project.
In addition, the contract involves testing and commissioning for the natural gas metering station and the onshore and onshore sections of the gas production pipeline, which will be built by other contractors. The contract was awarded following a public procurement process.
The costs related to the contract will be divided equally between the two partners, OMV Petrom and Romgaz.
“With the signing of this contract, we are taking an important step for the development of the Neptun Deep project – practically it marks the start of the execution phase. We will continue to work at a sustained pace so as to produce the expected gas volumes, safely, starting in 2027”, said Christina Verchere, CEO of OMV Petrom.
Alessandro Puliti, Saipem CEO, showed, in context, that the local team, from the Technology Center near Ploiesti, will be used to test the materials that will be used for the offshore installations.
“We are proud to have been selected, following a competitive process, as suppliers under the EPCIC contract for the development of Neptun Deep. This confirms the confidence of our customers in our core competencies and fleet of high-tech equipment for the safe, sustainable and complex development of deposits. We will use our local team, from the Technological Center near Ploiesti, for testing the materials that will be used for the offshore installations. This Center brings together 200 researchers and experts, and 95% of them are Romanian,” Puliti emphasized.
Neptun Deep is the largest natural gas project in the Romanian area of the Black Sea. OMV Petrom and Romgaz will invest up to 4 billion euros for the development phase of the project. Neptun Deep will generate a production of about 100 billion cubic meters of natural gas, thus making the country the largest producer of natural gas in the EU.
The infrastructure required for the development of the Domino and Pelican South offshore natural gas fields includes 10 wells, 6 in deep water (~1000m) and 4 in shallow water (~100m), 3 subsea production systems and the associated gathering pipeline network, a platform offshore in the water area with a depth of 100 meters, the main gas pipeline to the shore (~160km) and the Tuzla gas measuring station.