The two companies approved the development plan for the Domino and Pelican South commercial natural gas fields in the Neptun Deep offshore block, which is being submitted to the National Agency for Mineral Resources (NAMR) for endorsement.
OMV Petrom is the operator of the project, with a 50% participating interest.
“With the Final Investment Decision for the Neptun Deep project, we are entering the development phase of the first deepwater offshore project in Romania together with our partner, Romgaz. This is a major step forward in our Strategy 2030 execution and will bring a significant shift in our portfolio. Our proposition to shareholders remains growth in investments, increase in profitability and in dividends – all while securing a sustainable long-term business through our energy transition,” says Christina Verchere, OMV Petrom CEO.
The Neptun Deep block in the Black Sea has an area of 7,500 square km and is located about 160 km far from the shore, in water depths between 100 and 1,000 meters. Since 2008, the exploration activities in the Neptun Deep block have included two 3D seismic acquisition campaigns and two exploration drilling programs. The first natural gas discovery was made in 2012. The total exploration and appraisal expenses to date amount to more than EUR1.5 billion.
Key estimated highlights of the Neptun Deep project (100%):
• Total development capex is estimated at up to EUR 4 bn, to be spent mostly during 2024-2026 • First production is expected in 2027
• Plateau production is estimated at around 140 kboe/day for almost 10 years • Estimated recoverable volumes are currently at around 100 bcm (~700 mn boe)
• Unit production cost is estimated at an average of 3 USD/boe (for the life of field)
• HSSE: carbon footprint is expected to be better than industry benchmark (at plateau production, carbon footprint of around 2.2 kg CO2/boe, significantly below the industry average of 16.7 kg CO2/boe as per IOGP). State-of-the-art technology and expertise are to be used in order to produce the gas safely and in an environment-friendly manner.
(English version by Catalina Apostoiu)