Neptun Deep project makes significant progress: more than 80% of the execution agreements have been awarded

• Agreement signed for Transocean Barents drilling rig
• Halliburton Romania to provide integrated drilling services
• Drilling planned to start in 2025; first gas in 2027

OMV Petrom, the largest integrated energy company in Southeastern Europe, has continued to make significant progress in implementing Neptun Deep project. The company has signed an agreement with an estimated value of EUR 325¹ million for the semi-submersible drilling rig Transocean Barents for a minimum period of one and a half years. Moreover, a contract of approximately EUR 140 million was signed with Halliburton Romania for integrated drilling services. These are in addition to the previously announced EUR 1.6 billion contract with Saipem for the offshore facilities, as well as other smaller contracts.

Christina Verchere, OMV Petrom CEO: “With the award of the drilling rig and integrated drilling services agreements, OMV Petrom has now secured more than 80% of the execution agreements required to deliver the Neptun Deep project. We are working with reputed international contractors and suppliers, who have the skills and experience to deliver this complex project. We also count on the experience of our local suppliers, who have specific knowledge of the Romanian environment so that we get the best possible outcome for Neptun Deep project. Our most important objective is to start production safely and on budget in 2027, together with our partner Romgaz, and to support Romania in its transition to become the largest natural gas producer in the EU.”

The agreement for the sixth-generation semi-submersible drilling rig includes crew and associated services, products, equipment and materials. The Transocean Barents is a state-of-the-art drilling rig with a Class 3 dynamic positioning system, anchors and dual RAM Rigs, meaning it can work efficiently at both our shallow and deepwater locations. Mobilization to the Black Sea is scheduled to commence towards the end of 2024, with drilling activities planned in 2025. In total, 10 wells are to be drilled.

Halliburton Energy Services Romania together with Newpark Drilling Fluids Eastern Europe will provide integrated drilling services. Halliburton’s international and local experience in Romania will be deployed on a wide range of services such as cementing, directional drilling and well completions.

With these latest commitments, OMV Petrom and ROMGAZ are on track to safely deliver the first gas from Neptun Deep in 2027 and the project remains within the up to EUR 4 billion guidance for total investment.

The infrastructure required for the development of two fields comprises three subsea production systems, one at Pelican South, and two at Domino, with the associated flow lines and umbilicals, a shallow water offshore gas platform, the main natural gas pipeline to shore at Tuzla and a natural gas metering station. The offshore platform generates its own power, operating at the highest standards of safety and environmental protection. The wells and fields will be operated remotely, through a digital twin. A key aspect of the development concept is that natural reservoir energy is used to transport the gas to shore, eliminating the need for gas compression. This, together with other design features, ensures that emissions from the Neptun Deep development are kept to a minimum, well below industry norms.

In August this year, the company signed an agreement with Saipem S.p.A. and Saipem Romania SRL with a total estimated value of approximately EUR 1.6 billion for the management, engineering, procurement, fabrication, assembly, maritime transportation, installation, testing and commissioning services for the offshore facilities of the Neptun Deep project. In addition, the contract includes the testing and commissioning of the gas metering station and the near shore and onshore sections of the gas production pipeline.

About Transocean

Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. Transocean specializes in technically demanding sectors of the global offshore drilling business with a particular focus on deepwater and harsh environment drilling services and operates the highest specification floating offshore drilling fleet in the world. Transocean owns or has partial ownership interests in and operates a fleet of 37 mobile offshore drilling units, consisting of 28 ultra-deepwater floaters and nine harsh environment floaters. In addition, Transocean is constructing one ultra-deepwater drillship.

About Halliburton

Halliburton is one of the world’s leading providers of products and services to the energy industry. Founded in 1919, it creates innovative technologies, products, and services that help customers maximize their value throughout the life cycle of an asset and advance a sustainable energy future.

About OMV Petrom

OMV Petrom is the largest integrated energy company in South-Eastern Europe, with an annual Group hydrocarbon production of approximately 43 million boe in 2022. The Group has a refining capacity of 4.5 million tons annually and operates an 860 MW high-efficiency power plant. The Group is present on the oil products retail market in Romania and neighbouring countries through approximately 780 filling stations under two brands – OMV and Petrom.

OMV Petrom is a company in which Romanian shareholders hold over 42% of the shares (of which the Romanian state, through the Ministry of Energy, holds 20.7%, and 21.7% are owned by pension funds in Romania, to which are added almost 500,000 individual investors and other Romanian entities). OMV Aktiengesellschaft, one of the largest listed industrial companies in Austria, holds a 51.2% stake in OMV Petrom, and the remaining 6.4% are held by other foreign investors. Of the total shares of OMV Petrom, 28.1% represents the free float on the Bucharest Stock Exchange.

OMV Petrom is the largest contributor to the state budget, with approximately 39 billion euro in taxes and dividends paid between 2005 and 2022. During the same period, the company invested approximately 17 billion euro. In 2022, the taxes paid by OMV Petrom ensured 7% of Romania’s tax revenues.

Since 2007, OMV Petrom has included corporate responsibility principles into its business strategy. Between 2007 and 2022, the company has allocated around 120 million euro to develop communities in Romania, focusing on environmental protection, education, health, and local development.

Source: www.bvb.ro, December 12, 2023