Romgaz and ExxonMobil Finalizing Agreement on Purchase of Neptun Deep Project Stake
Romgaz, the largest natural gas producer and the main supplier in Romania, sent a report to the Bucharest Stock Exchange informing that it has completed exclusive negotiations and reached an agreement with ExxonMobil Exploration and Production Romania Holdings Ltd on the terms and conditions for the acquisition of the stake in the Neptun Deep project, and the transaction could be completed in the first quarter of 2022.
“S.N.G.N Romgaz S.A. and ExxonMobil Exploration and Production Romania Holdings Ltd. finalized 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, company that holds 50% of the rights and obligations under the Concession Agreement for petroleum exploration, development and production in XIX Neptun Deep Block, as well as on the transfer of operatorship of the project to OMV Petrom SA following transaction completion.
This agreement will be signed subject to the endorsement of the Board of Directors and approval of the Extraordinary General Shareholders Meeting of S.N.G.N Romgaz S.A.
Subject to obtaining such approvals and to satisfaction of the conditions precedent provided in the share sale-purchase agreement, the transaction is expected to be completed in the first quarter of 2022.”
Background
In December, 2019, ExxonMobil officially announced the intention to sell its stake in Neptun Deep, until then the company preferring not to comment the information appeared in the media.
In November, 2020, after Exxon Mobil officially announced its intention to sell its entire 50% share in early 2020, Romgaz expressed its intention to enter the project.
Romgaz submitted, on the last day of March 2021, a binding offer for the acquisition of 100% of ExxonMobil interests in Neptun Block, the day when the deadline provided in the letter sent by ExxonMobil Upstream Business Development on February 15 2021 expired.
On June 17, 2021, Romgaz and ExxonMobil signed an Exclusivity Agreement by which the seller grants Romgaz an exclusivity right for a period of 4 months (until October 15, 2021) with respect to the negotiations for the acquisition of all shares issued by (representing 100% of the share capital of) ExxonMobil that holds 50% of the rights and obligations under the Concession Agreement for petroleum exploration, development, and production in XIX Neptun Deep Block.
On October 5, 2021, Romgaz and ExxonMobil agreed to extend the exclusivity period from October 15 to November 15.
