Page 15 - EurOil Week 49 2021

EurOil PROJECTS & COMPANIES EurOil

OMV Petrom warns of further

Neptun Deep delay

ROMANIA OMV Petrom could further postpone a final generate a third of OMV Petrom’s total clean
investment decision (FID) at the troubled Nep- current cost of supply (CCS) EBIT by 2030, the
The company was tun Deep gas project off Romania if lawmakers company said.
unveiling what it said do not follow through with amending the coun-
was the largest private try’s offshore law by the end of the year, its CEO Low-carbon shift
investment plan in said on December 8. OMV Petrom described its 10-year strategy
Romania’s energy OMV Petrom and its US partner ExxonMo- as the largest private investment plan in Roma-
sector. bilwere initially hoping to take an FID on the nia’s energy sector. It is striving to reduce its
84-bcm Neptun Deep gas discovery as early as carbon footprint, growing its regional gas busi-
2018. But weak prices and controversial amend- ness and optimise its general operations. At the
ments to the country’s offshore law have resulted same time it wants to deliver more cash flow to
in the decision being repeatedly delayed. Exx- shareholders and jack up base dividends over the
onMobil is now withdrawing from the project, period.
having signed a deal recently to divest its stake The strategy’s overall cost is €11bn ($12.4bn)
to Romgaz. between now and 2030. Some 35% of this sum
In a 10-year strategy unveiled on December will go towards growing OMV Petrom’s low-car-
7, OMV Petrom said it expected a project sanc- bon business and reducing its emissions. It is
tion at Neptun Deep in either 2022 or 2023. And looking to cut the carbon intensity from its oper-
it could take a further four years for the field to ations by 30% and its Scope 1, 2 and 3 emissions
start up, it said. The development’s projected cost by 20% by 2030. Its goal is to have a methane
is €2bn ($2.25bn), and the field should flow at intensity of only 0.2% by 2025.
140,000 barrels of oil equivalent per day at full OMV Petrom also hopes to reduce its climate
capacity. footprint by expanding the share of gas in its pro-
Neptun Deep is set to serve as the centrepiece duction mix to 70%, it said.
in OMV Petrom’s Black Sea strategy. Beyond Other targets include 1 GW of renewable
Romania, the company is appraising the Han energy capacity, expanded biofuels production
Asparuh oilfield in Bulgarian waters adjacent and the creation of a low-carbon mobility net-
to Neptun Deep, and is undertaking initial work comprising over 500 points for alternative
exploration work at Block II off Georgia as well. fuels, including LNG, CNG and electricity. In the
It has also hinted at involvement in projects off late 2020s OMV Petrom also wants to build up
Ukraine. positions in hydrogen and carbon capture and
This regional growth plan is expected to storage. ™

Week 49 09•December•2021 www. NEWSBASE .com P15