Exxon Sells Romanian Subsidiary For $1B To Romgaz

Exxon Sells Romanian Subsidiary For $1B To Romgaz
ExxonMobil has reached an agreement to sell its Romanian upstream affiliate to Romgaz for more than $1B.

U.S. supermajor ExxonMobil has reached an agreement to sell its Romanian upstream affiliate, ExxonMobil Exploration and Production Romania, to Romgaz for more than $1 billion, subject to Romanian government approvals.

The agreement includes all shares in ExxonMobil Exploration and Production Romania along with interest in the XIX Neptun Block offshore Romania. The transaction is expected to close in the second quarter of 2022.

Operatorship on the block will transfer to its other titleholder OMV Petrom. Employees of the Romanian affiliate will transfer as part of the sale. Exxon and OMV Petrom both hold a 50 percent stake each. The block covers an area of approximately 2,900 square miles in water depths ranging from 330 to 5,580 feet.

“ExxonMobil continues to evaluate our portfolio of opportunities, focusing our investments in advantaged assets with a low cost of supply,” said Liam Mallon, president of ExxonMobil Upstream Company. “Our investments to date have positioned the Neptun Deep project for future success with the potential to help increase resource production within Romania and the European Union.”

ExxonMobil has been present in Romania’s upstream sector since November 2008, when it acquired an interest in the deepwater Neptun Deep block in the Black Sea.

The takeover of Exxon’s Romanian subsidiary has been long in the making as the initial bid for a takeover by Romgaz was submitted in March last year.

At the time of the initial bid, OMV Petrom said that the Black Sea currently ensures some 10 percent of Romania’s gas demand. It is worth noting that the current fields have been producing for decades and are now approaching the end of their life.

OMV Petrom also claimed that recent exploration activities indicated new reserves that could be brought to the surface to create value for the country.

In the same month, OMV Petrom made it known that, if the acquisition of Exxon’s Romanian arm by Romgaz is successful, it will be taking over the operatorship of XIX Neptun.

In June 2021, Romgaz and Exxon signed an exclusivity agreement for the acquisition of the XIX Neptun offshore block.

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