REG - OMV Petrom S.A. - OMV Petrom takes the FID for Neptun Deep project

OMV Petrom SAAnnouncement

21/06/2023 07:00

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RNS Number : 4195D  OMV Petrom S.A.  21 June 2023

 

 

 

 

 

 

 

 

OMV Petrom S.A.

Ad hoc report

 

 

In compliance with Law no. 24/2017 on issuers of financial instruments and
market operations (republished) and Financial Supervisory Authority's
Regulation no. 5/2018 on issuers of financial instruments and market
operations

 

Date of report: 21 June 2023

Name of issuer: OMV Petrom S.A.

Headquarters: Bucharest, 22 Coralilor Street, District 1, ("Petrom City")

Telephone/fax number: +40 372 161930/ +40 372 868518

Sole registration number at the Trade Register Office: 1590082

Fiscal attribute: RO

Trade Register Number: J 40/8302/1997

Share capital: RON 6,231,166,705.80

Regulated market on which the issued securities are traded: Bucharest Stock
Exchange and London Stock Exchange

 

 

 

Significant event to be reported:

OMV Petrom takes the Final Investment Decision for the Neptun Deep project
and, together with its partner Romgaz, approves the development plan

 

·      The Neptun Deep project is estimated to supply a total gross
volume of ~100 bn cubic meters of gas, to be shared equally between the two
partners

·      First gas is planned for 2027, following the project's total
development investments of up to EUR 4 bn

·      This Final Investment Decision is a major step forward in
delivering OMV Petrom's Strategy 2030; the project is expected to increase by
50% the company's 2030 EBIT

·      Romania will become the largest natural gas producer in the EU
and a net natural gas exporter, strengthening security of supply

 

OMV Petrom, the largest integrated energy company in South-Eastern Europe,
along with its partner Romgaz, has made the Final Investment Decision for the
development of the Neptun Deep project in the Black Sea. OMV Petrom is the
operator of the project, with a 50% participating interest. The two companies
approved the development plan for the Domino and Pelican South commercial
natural gas fields in the Neptun Deep offshore block, which is being submitted
to the National Agency for Mineral Resources (NAMR) for endorsement.

Christina Verchere, CEO of OMV Petrom: "With the Final Investment Decision for
the Neptun Deep project, we are entering the development phase of the first
deepwater offshore project in Romania together with our partner, Romgaz. This
is a major step forward in our Strategy 2030 execution and will bring a
significant shift in our portfolio. Our proposition to shareholders remains
growth in investments, increase in profitability and in dividends - all while
securing a sustainable long-term business through our energy transition."

The infrastructure required for the development of the Domino and Pelican
South commercial offshore natural gas fields includes ten wells, three subsea
production systems and associated flow lines, one offshore platform, the main
natural gas pipeline to Tuzla and a natural gas measurement station. The
platform generates its own energy, operating at the highest standards of
safety and environmental protection. The entire infrastructure will be
operated remotely, through a digital twin. This allows for process
optimization and will contribute to the improvement of our environmental
performance, by making energy consumption more efficient and reducing
emissions.

 

Key estimated highlights of the Neptun Deep project (100%):

·      Total development capex is estimated at up to EUR 4 bn, to be
spent mostly during 2024-2026

·      First production is expected in 2027

·      Plateau production is estimated at around 140 kboe/day for almost
10 years

·      Estimated recoverable volumes are currently at around 100 bcm
(~700 mn boe)

·      Unit production cost is estimated at an average of 3 USD/boe (for
the life of field)

·      HSSE: carbon footprint is expected to be better than industry
benchmark (at plateau production, carbon footprint of around 2.2 kg CO2/boe,
significantly below the industry average of 16.7 kg CO2/boe as per IOGP).
State-of-the-art technology and expertise are to be used in order to produce
the gas safely and in an environment-friendly manner.

More details will be available on the company's website, www.omvpetrom.com
(http://www.omvpetrom.com) , section Investors>Publications>Neptun Deep.

 

About Neptun Deep

The Neptun Deep block in the Black Sea has an area of 7,500 square km and is
located about 160 km far from the shore, in water depths between 100 and 1,000
meters. Since 2008, the exploration activities in the Neptun Deep block have
included two 3D seismic acquisition campaigns and two exploration drilling
programs. The first natural gas discovery was made in 2012. The total
exploration and appraisal expenses to date amount to more than EUR 1.5 bn.

 

Disclaimer

The above-mentioned volumes represent project estimates. The final exact
volumes are to be confirmed by the National Agency for Mineral Resources once
the field development plan is approved by them.

 

 

 

 

Christina
Verchere
    Alina Popa

Chief Executive Officer
 
    Chief Financial Officer

President of the Executive Board
                   Member of the Executive Board

 

 

 

 

 

 

 

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