Romanian gas producer Romgaz plans bond issue in H2-report

OMV Petrom SA

06/02/2024 07:56

BUCHAREST, Feb 6 (Reuters) - Romanian state-owned gas
producer Romgaz plans to issue bonds worth 500 million euros
($537.70 million) in the second half of this year to partially
fund a deepwater gas project in the Black Sea, its chief
executive was quoted saying on Tuesday.
    Romgaz has partnered with oil and gas group OMV Petrom
 ROSNP.BX  to develop the Neptun Deep Black Sea gas project, one
of the European Union's most significant natural gas deposits,
which is expected to cost 4 billion euros ($4.3 billion) to be
split evenly between the two companies. 
    Neptun Deep is expected to hold recoverable volumes of
around 100 billion cubic metres (bcm) of gas, with first gas
expected in 2027.
    "As previously mentioned, our intention is to issue a first
tranche of 500 million euros of a medium term notes (MTN)
programme in the second half of the year," Romgaz chief
executive Razvan Popescu was quoted saying by financial daily
Ziarul Financiar.
    Last year, Popescu said the company would look at two
separate issues worth an indicative amount of 1 billion euros.
    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 bcm of reserves that promise to help
diversify supply in the region.
    Earlier this month, OMV Petrom said it will ramp up
investments to roughly 8 billion lei ($1.73 billion) a year for
the next three years, driven by its Neptun Deep offshore gas
project in the Black Sea and renewable power projects.
($1 = 0.9299 euros)
($1 = 4.6221 lei)

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