Christina Verchere, CEO, OMV Petrom: "Over 80% of the necessary execution agreements for the Neptun Deep project are secured"

More than 80% of the value of the execution contracts related to the Neptun Deep project was assigned to contractors and suppliers, says Christina Verchere, CEO of OMV Petrom, in a company report published yesterday on the website of the Bucharest Stock Exchange (BVB).

The oil and gas producer has signed an agreement with an estimated value of 325 million euros for the semi-submersible drilling platform Transocean Barents, for a minimum period of one and a half years. In addition, a contract of approximately 140 million euros was signed with Halliburton Romania for integrated drilling services. These are in addition to the previously announced 1.6 billion euro contract with Saipem for offshore installations, as well as other smaller contracts, according to the company report.

Christina Verchere, CEO of OMV Petrom, said: "With the award of the drilling rig and integrated drilling services contracts, OMV Petrom has secured more than 80% of the performance agreements required to deliver the Neptun Deep project. We are working with international contractors and suppliers who have the necessary skills and experience to deliver this complex project. We also rely on the experience of our local suppliers, who know the specifics of the Romanian environment, so that we achieve the best possible results for the Neptun Deep project. The most important objective ours is to start production safely and with respect to the budget, in 2027, together with our partner Romgaz and to support Romania in its transition towards becoming the largest producer of natural gas in the EU".

According to the report, the agreement for the sixth-generation semi-submersible drilling platform includes crew and associated services, products, equipment and materials. Transocean Barents is a state-of-the-art drilling platform that can operate efficiently in both shallow and deep locations. Mobilization for the Black Sea is scheduled to begin towards the end of 2024, and drilling activities are planned for 2025. In total, ten wells will be drilled. Halliburton Energy Services Romania and Newpark Drilling Fluids Eastern Europe will provide integrated drilling services. Halliburton's international and local experience in Romania will be used in a wide range of services, such as cementing, directional drilling and well equipment, the document also mentions.

According to the report, through these recent commitments, OMV Petrom and Romgaz are on track to safely deliver the first quantities of natural gas from Neptun Deep in 2027, within the budget of up to four billion euros estimated for total investments. The infrastructure required to develop the two fields includes three subsea production systems, one for Pelican South and two for Domino, the associated gathering pipeline network, a shallow offshore natural gas platform, the main natural gas pipeline to shore at Tuzla and a natural gas measuring station are also mentioned in the report.

Romgaz Black Sea Limited holds 50% of the stake in the XIX Neptun perimeter, the deep water area (Neptun Deep), and the other 50% stake is held by OMV Petrom, which is also the operator of the project.