OMV Petrom, Romgaz to develop “largest” natural gas project in Romanian Black Sea

World Oil June 21, 2023

(WO) – OMV Petrom, the largest integrated energy company in South-Eastern Europe, and Romgaz, the largest producer and main supplier of natural gas in Romania, approved the development plan for the Domino and Pelican South commercial natural gas fields in the Neptun Deep block. This will be submitted to the National Agency for Mineral Resources for endorsement. OMV Petrom is the operator, with each company having a 50% interest in the project.

OMV Petrom and Romgaz will invest up to $4.37 billion for the development phase of the project, which will enable roughly 100 Bcm of natural gas to be brought on stream.

Christina Verchere, CEO of OMV Petrom, said, "With the final investment decision for the Neptun Deep project, we are opening a new game-changing chapter for the Romanian energy sector. Together with our partner, Romgaz, we are entering the development phase of the first deepwater offshore project in Romania. The project will contribute to Romania’s economic growth and will strengthen the country's energy security. To give an example of the project’s size: the estimated natural gas production is equivalent to roughly 30 times the current annual demand of roughly 4,300,000 households. It is also a major step forward for our Strategy 2030 that aims at supporting the energy transition in Romania and in the region".

The infrastructure required for the development of the Domino and Pelican South offshore natural gas fields includes 10 wells, 3 subsea production systems and associated flow lines, an offshore platform, the main natural gas pipeline to Tuzla and a natural gas measurement station.

The platform generates its own energy, operating at the highest standards of safety and environmental protection. The entire infrastructure will be operated remotely, through a digital twin. This allows for process optimization and will contribute to the improvement of environmental performance, by making energy consumption more efficient and reducing emissions.

First production is estimated for 2027. Production at the plateau will be approximately 8 Bcm annually (roughly 140,000 boed), for almost 10 years.

The Neptun Deep Block in the Black Sea has an area of ​​7,500 square km and is located at about 160 km from the shore, in waters between 100 and 1,000 meters deep. Since 2008, the exploration activities in the Neptun Deep block have included two 3D seismic acquisition campaigns and two exploration drilling programs.

Răzvan Popescu, General Manager of Romgaz, said, "Neptun Deep is a strategic project for Romania and for the region from the perspective of ensuring the natural gas needs and from the perspective of decarbonization. Starting with 2027, we will have a new source of natural gas, which has the potential to significantly increase the country's natural gas production.


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