Romanian gas producer Romgaz raises 500 mln euros from debut Eurobond

OMV Petrom SA

30/09/2024 14:02

BUCHAREST, Sept 30 (Reuters) - Romanian state-owned gas
producer Romgaz  ROSNP.BX  launched its first eurobond issue on
Monday, selling 500 million euros  ($559.50 million) worth of
five-year paper, IFR data showed, to partially fund a deepwater
gas project in the Black Sea. 
    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 to be split evenly
between the two companies. 
    The company plans to fund its share of the project through a
1.5 billion euro Euro Medium Term Notes (EMTN) programme which
got official approval earlier this month.
    Monday's issue was priced 255 basis points over mid-swaps,
only about 30 basis points above Romania's five-year eurobond,
according to LSEG data.
    Neptun Deep is expected to hold recoverable volumes of
around 100 billion cubic metres (bcm) of gas, with the first gas
expected in 2027.
    Gas producers have said there is huge potential for further
gas discoveries in Romania's Black Sea, where the European Union
member has an estimated 200 bcm of reserves that promise to help
diversify supply in the region.

($1 = 4.4433 lei)
($1 = 0.8937 euros)

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