Romania’s Prime Minister Nicolae-Ionel Ciuca, Energy Minister Virgil Popescu and David Muniz, Chargé d’Affaires ad-interim, U.S. Embassy in Romania, participated in signing the sale-purchase agreement for takeover by ROMGAZ of Exxon’s stake related to the Neptun Deep Block.
ROMGAZ, the largest gas producer in Romania, signed at the headquarters of the Romanian Government, the sale-purchase agreement for all shares issued by (representing 100% of the share capital of) ExxonMobil Exploration and Production Romania (EMEPRL), which owns 50% of the rights acquired and the obligations assumed under the Petroleum Agreement for the eastern area, the deep-water area of the Black Sea offshore XIX Neptun Block.
The sale-purchase agreement was approved within the Extraordinary General Meeting of ROMGAZ Shareholders, on April 28, 2022, and the completion of the transaction is conditional upon fulfilment of conditions precedent under the agreement. The acquisition price paid by ROMGAZ will be USD 1,060,000,000, with the possibility of adjustment according to the mechanisms provided in the share sale-purchase agreement.
Previously, on March 22, the Board of Directors of ROMGAZ endorsed the sale-purchase agreement for all shares issued by (representing 100% of the share capital of) EMEPRL, which owns 50% of the rights acquired and the obligations assumed under the Petroleum Agreement for the eastern area, the deep-water area of the Black Sea offshore project XIX Neptun.
“The transaction worth over USD 1 billion is an expression of Government’s commitment to support the vital energy investments and capitalize on Black Sea gas for the benefit of Romanians and of the Romanian economy. The new offshore law debated at a fast pace in Parliament unlocks vital investments to secure natural gas resources. The Romanian Government’s vision for developing the energy sector, based on investments, a pro-business approach and stability approach, will reposition Romania as an important regional player, able to ensure the necessary consumption for the citizens and the economy and even become a provider of energy security in the region,” said Prime Minister Nicolae-Ionel Ciuca.
“Today, by signing the agreement between ROMGAZ S.A. and ExxonMobil, Romania has taken a huge step to ensuring energy security and independence. In the current geopolitical context, we have no time to lose. We will make the necessary efforts to speed up the start of exploitation, to consume Romanian gas. Yes, as I said, Romanians will have Romanian gas in their homes. And not only! Romania will have a gas surplus, basically doubling its production, way above the current domestic consumption. And another very important aspect: our country will become a supplier of regional energy security,” Romania’s Energy Minister Virgil Popescu said.
“The execution of the sale-purchase agreement for all shares issued by (representing 100% of the share capital of) ExxonMobil Exploration and Production Romania, which owns 50% of the rights acquired and the obligations assumed under the Petroleum Agreement for the eastern area, the deep-water area, of the Black Sea offshore project XIX Neptun, is the result of extensive and complex negotiations carried out in recent months, and also a very important stage in the corporate and strategic development and transformation of ROMGAZ. The execution of the agreement will be followed by the legal steps to complete the transaction, after which, together with the future partner, we will carry out the necessary and useful formalities to move to the phase of development-exploitation of the gas fields in the area of the Neptun Deep Block, so that the first gas production is obtained at the end of 2026 or at the beginning of 2027. This project is a strategic opportunity for both ROMGAZ and our country, especially in the current geopolitical context, therefore providing Romania with an important source of natural gas in order to ensure the energy security and independence. I thank ROMGAZ team and the Board of Directors of ROMGAZ for their involvement and support in this transaction,” said the CEO of ROMGAZ S.A., Aristotel Jude.
“We are proud of our previous activities as operator, and we believe that Neptun Deep is an important project for Romania. We wish ROMGAZ and OMV Petrom a lot of success in carrying out the project,” said Frank Kretschmer, Vice-President of ExxonMobil Exploration and Production Romania.
The ceremony for signing the EMEPRL share sale-purchase agreement was attended on behalf of ROMGAZ S.A., by CEO Aristotel Jude, CFO Razvan Popescu, the chairman of the Board of Directors (BoD), Secretary of State – Dan Dragos Dragan, BoD members – Gheorghe Silvian Sorici, Botond Balazs, Nicolae Bogdan Simescu and Cezar Batog.
ExxonMobil subsidiaries were represented by Vice President Frank Kretschmer, together with Samuel Shehadeh, Alin Stirbu and Thomas Welzel.