The government extends the exploration phase of the Neptun Deep perimeter by two years / “possible new discoveries” of gas are invoked

On Wednesday, in an extraordinary meeting, the government will approve a draft decision on the two-year extension of the concession agreement for gas exploration in the Black Sea. According to the explanatory note, it will be an addendum to the concession agreement.

Despite the extension of the exploration period, the holders of OMV Petrom and Romgaz claim that the project is progressing according to the general plan, and the first quantities of gas are expected to enter the national network starting from 2027. Deposits of at least 100 billion cubic meters of natural gas are estimated, equivalent to ten years of gas consumption in Romania.

The two-year extension is motivated by the need to complete the oil operations in optimal conditions and to manage the complexity of the Neptun Deep project, the largest natural gas project in the Romanian area of ​​the Black Sea.

The draft decision was drawn up at the request of the concession holders, OMV Petrom and Romgaz Black Sea Limited, and aims to extend the current exploration phase with an additional period of two years, until November 2027, without changing the total duration of the concession, valid until 2045.

Possible new discoveries are invoked

According to the explanatory note, unforeseen situations arose at the conclusion of the initial agreement, which require an additional period for the completion of the exploration works.

The document shows that “it is desired to use the same contracted drilling rig for drilling the ten exploitation wells (on the Domino and Pelican Sud structures), the completion of which is planned for the end of 2026.”

The simultaneous drilling of exploratory and exploitation wells would increase operational risks and require additional resources for emergency intervention (ships, helicopters), the substantiation note also states.

The two-year extension of the exploration phase will provide sufficient time for in-depth post-drilling analysis that will help mature other drilling prospects. This could lead to a more definite assessment of possible new discoveries in the Neptun Deep perimeter, the document states.

The Neptun Deep project is considered strategic for Romania, being an essential source for ensuring the security of natural gas supply at the national and regional level, in accordance with the country's energy strategies.

The final investment decision was made in 2023, and development work on the Domino and Pelican Sud fields involves massive investments in subsea infrastructure, drilling and well rigging.