“The successful completion of the transaction is a special accomplishment for Romgaz business portfolio. Neptun Deep Project has an important and strategic significance for Romania for ensuring our country’s energy security, especially in the current geopolitical context. We are determined to proceed to the development-production phase in the shortest time, together with our partner. I would like to thank Romgaz team for the continued efforts to fulfil this strategic objective of our company, as well as to all parties involved in this transaction,” stated Aristotel Jude, CEO of Romgaz.
The transaction completed on August 1, 2022 was conditioned upon fulfilling the conditions precedent provided in the sale purchase agreement concluded on May 3, 2022 between S.N.G.N Romgaz S.A and the Sellers. All conditions precedent were successfully fulfilled in line with contractual provisions, as per a stock market report.
The two conditions precedent were the following: Approval or deemed approval by the Supreme Council of National Defence of the transactions contemplated by the Agreement; Issuance by the Romanian Government of a Decision approving the maintaining of the validity of the Petroleum Agreement, thereby satisfying the requirements of Article 34.5 of the Romanian Petroleum Law, following the notification of the National Agency for Mineral Resources on the Transaction and the change in control of ExxonMobil Exploration and Production Romania Limited”, as per the report.
“The transaction is an important investment made by Romgaz, in line with the company’s development strategy. In the next period we will continue to carry out the necessary formalities to ensure financing of Romgaz participating interest to the development of Neptun Deep Project,” stated Razvan Popescu, Chief Financial Officer (CFO) of Romgaz.
On December 10, 2021, the Extraordinary General Meeting of Shareholders of Romgaz approved the transaction to acquire all shares issued by (representing 100% of the share capital of) ExxonMobil Exploration and Production Romania Limited. On April 28, 2022, shareholders approved the conclusion of the sale- purchase agreement.
The deal stands at $1.06 billion and Romgaz must make a deposit of $106 million right away. The transaction has been delayed lately due to the adjustment of some clauses in the sale-purchase agreement.
Romgaz acquired the 50% stake held by EMEPRL in the Neptun Deep gas exploration and drilling project in the Black Sea, with the other part being owned by OMV Petrom. ExxonMobil and OMV Petrom already invested $1.5 billion in the exploration phase.
Romgaz has a stock market value of RON18.5 billion and is 70% owned by the Romanian State, through the energy ministry. SNG shares have gained 22.8% since the beginning of 2022, amid deals worth RON385 million, in line with stock market data.
Romgaz ended the first quarter of 2022 with a net profit of RON980 million, up 111% on the year, and a turnover of RON3.93 billion, up 196% on the year, in line with the company’s quarterly report.