OMV Petrom ups investment, focus on Black Sea gas, renewables (updated)

OMV Petrom SA

01/02/2024 09:10

(Adds more quotes, details throughout)
    By Luiza Ilie
       BUCHAREST, Feb 1 (Reuters) - Romania's OMV Petrom will
ramp up investments to roughly 8 billion lei ($1.74 billion) a
year for the next three years, driven by its Neptun Deep
offshore gas project in the Black Sea and renewable power
projects, its CEO said on Thursday.
    The oil and gas group invested 4.7 billion lei in 2023. 
    The Neptun Deep Black Sea gas project, one of the European
Union's most significant natural gas deposits is expected to
cost 4 billion euros ($4.3 billion). OMV Petrom  ROSNP.BX  is
developing it with state-owned gas producer Romgaz  SNG.BX . 
    OMV Petrom CEO Christina Verchere said that with over 80% of
the main project contracts awarded, she saw no change in the
project's cost and deadline at present.
    "Our goal remains very much to bring the Neptune gas onshore
in 2027, and we are on track to do that," she told Reuters in an
interview.
    Gas producers have said there is huge potential for further
gas discoveries in Romania's Black Sea, where the European Union
state has an estimated 200 billion cubic metres of reserves that
promise to help diversify supply in the region.  
    Verchere said OMV Petrom's operations in the Black Sea
continued as usual despite the war in Ukraine. 
    "In that regard there is an aspect of operations as usual, I
think it's fair to say there is a lot of good dialogue with the
authorities with regards to ensuring that continues that way."
    "Likewise, we are also an importer of crude, so cargoes are
coming into Constanta Port and that is continuing as usual for
us too."
    She also said OMV Petrom was not impacted by attacks in the
Red Sea, as the company's crude imports came mainly from
Kazakhstan and Azerbaijan.
    The company, which also has a gas-fired power plant that
accounted for 12% of Romania’s power mix in 2023, has announced
plans to develop over 2 gigawatts of solar and wind power, which
together with Neptun Deep will drive record-high investment.
    "Obviously, you've got in there the ramp up of Neptun but
we've been actually very active in our low and zero carbon
opportunities," Verchere said. "We're a power company already,
but now we're building a green power position as well of that." 
($1 = 4.6097 lei)
($1 = 0.9269 euros)

 (Reporting by Luiza Ilie
Editing by Mark Potter)
 ((luiza.ilie@thomsonreuters.com; +4021 527 0312; https://www.reuters.com/journalists/luiza-ilie))