Romgaz to buy ExxonMobil Romanian affiliate for $1 billion

SNGN Romgaz SA, the largest natural gas producer in Romania, has reached a deal with ExxonMobil to purchase its Romanian upstream affiliate, ExxonMobil Exploration and Production Romania, for more than $1 billion, subject to Romanian government approvals.

The agreement includes all shares in ExxonMobil Exploration and Production Romania along with its 50% interest in the deepwater XIX Neptun block in the Black Sea. Operatorship of the block will transfer to the remaining partner, OMV Petrom. Employees of the Romanian affiliate will transfer as part of the deal, ExxonMobil said in a May 3 release.

With the contract signed, steps to close the deal—expected in this year’s second quarter—will follow, after which, together with OMV Petrom, Romgaz will work to transition gas fields in the Neptun Deep perimeter to the development-exploitation phase with the aim of first production end 2026 or early 2027, said Aristotel Jude, Romgaz General Manager, in a signing ceremony May 3.

ExxonMobil acquired the Neptun Deep block interest in 2008, forming a joint venture with OMV Petrom. The 7,500-sq km block lies in water depths of 100-1,700 m.

More than 3,000 sq km of 3D seismic data was acquired over the block, and in March 2012, Domino-1, the first deepwater well in Romania, confirmed the presence of natural gas (OGJ Online, Feb. 2, 2012). In 2016, OMV Petrom completed an exploration drilling campaign which included seven wells (OGJ Online, May 6, 2016). Commercial viability of the resource was ongoing.