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Lukoil seeks exit from Romanian

offshore block

ROMANIA RUSSIA’S Lukoil is looking to exit the EX-3-Tri- investment.
dent exploration block in the Romanian Black Exxon and its Austro-Romanian part-
ExxonMobil is also Sea, local reports claim. The revelation comes as ner OMV Petrom at Neptun Deep originally
searching for a buyer for ExxonMobil continues its search for a buyer for planned to reach a final investment decision
its share in an offshore its share of another offshore Romanian scheme, (FID) on the 85 bcm discovery in 2018, but are
Romanian project. Neptun Deep. yet to take the step, citing poor government
Lukoil has an 87.8% stake in EX-3-Trident, policies.
with state-owned partner Romgaz. Initial Exxon has been searching for a buyer for its
exploratory work in 2015 had indicated potential 50% share of the project since last year, as part
recoverable gas deposits of around 30bn cubic of its staged withdrawal from the European
metres. upstream sector. Romgaz is prepared to buy a
“We received this letter from Lukoil. We will 20% stake from Exxon, reports in the Romanian
hold a discussion with them, we don’t know their media claim.
reasons yet,” Romgaz CEO Adrian Volintiru told In related news, KMG International (KMGI),
local news agency G4Media. the overseas arm of Kazakhstan’s national oil
The CEO did not rule out Romgaz acquiring company (NOC) KazMunayGas (KMG), is also
Lukoil’s position. Accoding to G4Media, the considering the sale of non-core assets in Roma-
Russian firm has informed various market play- nia, it said in a stock filing on November 16.
ers about its intention to leave the project. KMGI’s main business is refining and fuel dis-
Romania introduced a controversial offshore tribution in Romania and the region, although
law in late 2018 requiring operators to sell at it said it would maintain and expand these core
least 50% of their future Black Sea gas output on activities. However, it is looking to offload non-
Romanian commodity platforms. It also charged core assets including pipes and fittings manufac-
Black Sea gas producers a windfall tax on addi- turer Palplast, industrial fittings manufacturer
tional revenues. Rominserv Valves IAIFO, security services pro-
The law has been criticised heavily by pro- vider Global Security Sistem and oil well services
ducers, which say its introduction has stifled provider Rompetrol Well Services. ™

P14 www. NEWSBASE .com Week 46 19•November•2020