Romanian state-controlled natural gas company Romgaz will have to pay over USD 1 bln on the spot, while the final investment decision is expected within a year - during the last quarter of 2022 - and the project involves risks, according to the documents sent by the management to company's shareholders, who are expected to clear the deal with ExxonMobil on December 9.

Romgaz has already reached an agreement with the US group to take over for USD 1.06 bln (USD 1.07 bln maximum) a 50% stake in Neptun Deep offshore natural gas perimeter.

OMV Petrom owns the other half of the project and is becoming the operator of the project after Exxon pulls out of it.

Out of the total sum to be paid, Romgaz will borrow from banks USD 375 mln (EUR 325 mln). Romgaz claims that it sent a call for offers to eight banking companies, four of which submitted bids in line with the company's requirements and they were invited to resubmit a final, revised and improved binding offer. Romgaz is ready to repay the loan within five years, in quarterly instalments.

In terms of risks, from Romgaz's perspective, the company refers directly to the amendment of the Offshore Law.

"An improved version of the Offshore Law would lead to increased profitability of the investment in the Neptun Deep project. If the amendment of the Offshore Law is delayed, there is a risk of postponing the adoption of the final investment decision and the start of investments in the development of the Neptun Deep perimeter and, implicitly, the start of exploitation of the deposit is delayed," according to the document sent by Romgaz management to shareholders, quoted by Profit.ro. 

(Photo: Dreamstime)

iulian@romania-insider.com