Gov't okays Addendum 7 to Oil Concession Agreement in XIX Neptun perimeter

The Government extended by two years, on Tuesday, by decision, the duration of the current exploration phase of the Concession Agreement for the exploration, development and exploitation of oil in the XIX Neptun perimeter, without changing the total duration of the concession, which is 45 years, namely until November 28, 2045.According to a Government's press release, through the additional act, the holder OMV Petrom waives the action carried out under the 2021 Arbitration Rules of the International Court of Arbitration in Paris in the arbitration file no. 27655/HBH, as well as the files pending in the national courts, namely at the Sector 1 Court under no. 10551/299/2023 and at the Bucharest Court under no. 6312/2/2023."Following the approval of the additional act by adopting the government decision, the Oil Agreement is updated by the parties, taking into account all legislative amendments that occurred during the course of the concession agreement. The concession agreement holders are: OMV Petrom and Romgaz Black Sea Limited", the press release reads.The current phase of the exploration period has been extended for safety and efficiency reasons, including the optimization of technical and human resources, as well as maintaining the continuity of drilling activities, the cited source states."The drilling of the ten exploitation wells on the Domino and Pelican Sud structures, where there are already confirmed commercial deposits, is planned to be completed by the end of 2026. Drilling activities for the Domino and Pelican Sud structures must be maintained in order to reach, as a priority, the exploitation of the resources from these deposits. The drilling of the well in the Anaconda exploration prospect has as its main purpose the confirmation of new commercial discoveries. The concession agreement for the exploration, development and exploitation of oil in the XIX Neptun perimeter, concluded between the National Agency for Mineral Resources (ANRM) - currently the National Regulatory Authority in the Mining, Petroleum and Geological Storage of Carbon Dioxide (ANRMPSG), on the one hand, and the National Oil Company Petrom and ELF Aquitaine company, on the other hand, was concluded during the year 2000 and entered into force as a result of its approval by Government Decision no. 1233/2000, published in the Official Gazette of Romania, Part I, no. 641/08.12.2000. The total duration of the Concession Agreement is forty-five (45) years (with a final validity date of 28.11.2045). The current phase of the exploration period has been extended for an additional period of two years, namely until 9.11.2027", the press release explains.The development phase of the two commercial natural gas fields, Domino and Pelican Sud, involves massive investments in state-of-the-art technology, requiring a sufficient period of time and dedicated technical and human resources for the construction of underwater infrastructure, drilling and equipping development wells, and the construction and commissioning of offshore production capacities for the exploitation of commercial natural gas resources, the cited source reads."The completion of these exploration-development works is a priority, being a condition for ensuring security in natural gas supply at national and regional level, in accordance with Romania's economic strategy 2025-2035 with a perspective of 2050, approved by Government Decision no. 1491/21.12.2024", the press release also states.