The Neptun Deep offshore project in the Black Sea is on the verge of beginning, and the cost is estimated at this moment to be "up to EUR 4 billion," Răzvan Popescu, CEO of Romgaz - the company that holds a 50% interest in the project besides OMV Petrom, said during a conference on February 21.

"We earmarked money for Neptun Deep in this year's budget already, [but] it is not mandatory to finance the project from our own cash – we are also considering issuing bonds, with maturities of 5, 7 and 10 years, probably denominated in euros," said Popescu, quoted by Economica.net. A collateralised loan is also an option, he added.

As regards its onshore operations, the company's plans are based on the rehabilitation of the existing wells in order to maintain a level of production assumed in the company's strategy.

Existing wells will be rehabilitated to counteract the natural depletion of the mature fields.

Separately, six deep exploratory wells will be drilled in the Caragele perimeter in the next two years. Three more wells are considered (and budgeted for) in case the first six prove successful.

Caragele is a significant deposit discovered by Romgaz close to Bucharest in 2016 and is among the largest and most promising onshore fields in Romania.

andrei@romania-insider.com

(Photo source: Inquam Photos/Adel Al-Haddad)