Pursuant to the oil law, royalties are calculated as a percentage of the production value. Depending on the deposit size, the percentage varies from 3.5% to 13.5% for oil and between 3.5% and 13% for natural gas.
In exchange, the government allows for a two-year extension of the exploration period in the Neptun Deep block in the Black Sea and added 15 year to all the onshore drilling licenses OMV got upon the privatization of OMV Petrom. The talks were held in secret and the results were announced via a press release from the Government.
“Twenty years after signing the initial contract, we have successfully rebalanced our cooperation with OMV Petrom. The goals are for Romanians to benefit from energy independence and a predictable energy market, for the government to have correctly sized revenues, and for OMV Petrom to continue to invest and develop in order to become a strong regional player in the energy market,” Prime Minister Ilie Bolojan said in a press release.
The talks between the government and OMV Petrom were conducted because many of the licenses were close to expiration date.
The extension of the exploration phase covers an unmapped area of the Neptun block, where wells have already been drilled in Pelican and Domino structures, and where production is due to begin in 2027, with a gas deposit of 100 billion cubic meters identified. OMV Petrom and Romgaz (SNG.RO) are partners in the Neptun block.
The new well had been included in the previous exploration program but could not be drilled in time due to the operational development of the project, therefore an extension of the term was requested.
“OMV Petrom has been and remains an enduring partner for Romania in developing the country’s natural resources. The historical legacy of the oil and gas industry has long served the economy. Together with the Romanian state, we are now entering the next chapter for the energy sector, ensuring continuity and growing Romania’s regional presence. In this next chapter, we will look to continue to explore and develop large scale natural gas deepwater opportunities, while focusing on the continued exploration and development of the mature fields in Romania,” said Christina Verchere, CEO OMV Petrom.
Romgaz in turn remains strongly committed to investing in Black Sea XIX Neptun Deep Block by extending the current exploration phase within the block.
“Neptun Deep Block in the Black Sea represents a strategic investment area for our company, and we are fully committed to advancing both the development and exploration projects. These projects hold significant importance for the Group’s investment portfolio,” said Razvan Popescu, Romgaz CEO.
(English version by Loredana Fratila-Cristescu)