$OMV (-5,53%) News update 25.03.2025
OMV Petrom, the largest integrated energy company in South East Europe, and ROMGAZ, the largest producer and main supplier of natural gas in Romania, announce the start of the first well to develop and exploit the Pelican South and Domino gas fields in the Neptun Deep block in the Black Sea, 160 km from the coast. The project is progressing according to plan, with first gas expected in 2027. Once plateau production is reached, Neptun Deep will contribute around 8 billion cubic meters per year to Romania's gas production.
"The start of drilling marks an important milestone in the progress of the Neptun Deep project, which is of strategic importance for Romania. The development of this project will allow Romania to meet its natural gas needs from its own sources and become a major player on the European market. Neptun Deep also contributes to the Romanian economy: It is estimated that it will generate revenues of around EUR 20 billion for the state budget over the entire duration of the project. We are doing everything we can to implement this project safely and efficiently so that the first gas deliveries can take place in 2027," says Christina Verchere, CEO of OMV Petrom.
"We are very pleased that the next phase of the Neptun Deep project can now begin, i.e. the start of the ten wells to secure natural gas production. Four wells will be located in the Pelican South field, the other six in the Domino field. The first well will be drilled in the Pelican South field at a water depth of around 120 meters. The gas reservoir as such lies approximately 2,000 meters below the seabed. We expect the drilling work for these ten wells to continue into the fourth quarter of 2026," says Cristian Hubati, OMV Petrom Executive Board member responsible for exploration and production.
"The start of drilling operations is an important achievement for the development of the Neptun Deep project. For ROMGAZ, this project is a strategic investment, as evidenced by its share in relation to the Group's total investments. The completion of the project and the first gas deliveries in 2027 will strengthen the profile of the ROMGAZ Group on the energy market in Romania and in the entire region - as a producer and supplier of natural gas as well as a producer and supplier of electricity. In addition, Neptun Deep will support ROMGAZ Group's long-term business operations, expand our investment opportunities and ensure their sustainability, as is also anchored in our energy transition strategy," says RÄzvan Popescu, CEO of S.N.G.N. ROMGAZ S.A.
"The drilling of the Neptun Deep block is the first substantial offshore activity in the Black Sea and demonstrates that the development and exploitation work programs by both titleholders are being delivered within the project schedule. This milestone underlines ROMGAZ's commitment to the implementation of the Neptun Deep project. It also demonstrates the Group's investment strength and good cooperation with the operator, the Ministry of Energy, the regulator ANRMPSG, the regulator ACROPO and other relevant ministries and authorities. We are determined to complete this phase successfully and to carry out the offshore work under safe conditions. Thanks to the joint efforts of the project teams and contractors involved, we will succeed," says Aristotel Jude, Deputy CEO of S.N.G.N. ROMGAZ S.A.
The borehole foundations in the Pelican South field were successfully installed using the so-called CAN-ductor. This advanced technology for offshore drilling minimizes the overall environmental footprint of the drilling process. Drilling of the first well is expected to take two to three months.
Drilling will be carried out using the Transocean Barents mobile drilling rig, which has been contracted specifically for this project. The integrated drilling services will be provided by Halliburton Energy Services Romania and Newpark Drilling Fluids Eastern Europe. Halliburton will utilize its international expertise and experience gained to date in Romania for a wide range of services including cementing, directional drilling and well completion.
The infrastructure required for the development of the two fields includes three subsea production systems (one for Pelican South and two for Domino), the associated gathering network, a shallow water offshore platform, the main gas pipeline to shore in Tuzla and a gas metering station. The offshore platform generates its own electricity and operates to the highest safety and environmental standards. The wells and fields are remotely controlled via a digital twin. An important aspect of the development concept is that the natural energy of the reservoir is used to transport the natural gas onshore, eliminating the need for gas compression. Together with other design features, this ensures that emissions from the development of Neptun Deep are kept to a minimum well below industry norms.
In addition to drilling, work continues on various components of the Neptun Deep project: The production platform is under construction, the subsea infrastructure systems are being fabricated, the support vessel is being built, and construction of the natural gas metering station is also underway.
OMV Petrom and ROMGAZ are jointly investing up to EUR 4 billion in the development of the Neptun Deep project.