Neptun Deep advances towards first gas production, projected for H1 2027

The Neptun Deep block is advancing towards first gas production, expected in the first half of 2027, with annual plateau production estimated at approximately 8 billion cubic meters (100%), according to a joint statement by the block's two co-titleholders, OMV Petrom and Romgaz."OMV Petrom and Romgaz, co-titleholders of the Neptun Deep block, anticipate that first gas will enter the National Transmission System (NTS) in the first half of 2027. Following the successful installation of the Neptun Alpha offshore production platform in shallow waters and recent progress, the project is proceeding according to plan, allowing for a more precise definition of the timeline for upcoming key milestones. Once the first gas reaches the NTS entry point, the project will enter a phase of gradual production ramp-up and operational performance testing," reads the release submitted on Monday to the Bucharest Stock Exchange. According to the document, the production plateau is expected to be reached by the end of the third quarter of 2027."Defining a more precise timeframe for first gas production marks a significant milestone for Neptun Deep and brings us closer to the start of production. The project will play a key role in strengthening Romania's energy security and positioning the country as a leader in natural gas production within the European Union. As we approach the moment of first gas, we are focusing on safety, efficiency, and reliability in the project's execution," stated Christina Verchere, CEO of OMV Petrom, in the press release.Meanwhile, Cristian Hubati, OMV Petrom Executive Board member responsible for Exploration and Production, noted that once installed, all systems and facilities will undergo comprehensive inspections and testing prior to commissioning.Romgaz CEO Razvan Popescu highlighted that the Neptun Deep project continues to achieve successive key milestones, which will directly contribute to the energy security of both Romania and the European Union. "The Neptun Deep project is at an advanced stage of development, bringing us closer to first gas production. Following the successful completion of key execution stages, future activities will focus on ensuring a predictable transition to the production phase," noted Aristotel Jude, Deputy CEO of Romgaz.During 2026, the Neptun Alpha production platform and the offshore pipeline were installed as part of the Neptun Deep project, and seven of the ten production wells were completed.According to a joint statement from the two companies, the project will now focus on continuing drilling operations for the remaining development wells, installing and integrating subsea infrastructure, connecting offshore facilities to the transport pipeline, and implementing a comprehensive testing program.The Neptun Deep project holds estimated recoverable volumes of approximately 100 billion cubic meters (around 700 million barrels of oil equivalent - boe) and is projected to reach a plateau production level of 140,000 boe/day, which it will maintain for nearly 10 years. The final investment decision for the project, which entails development costs of EUR 4 billion, was made in June 2023, with the first gas delivery scheduled for 2027. Neptun Deep is expected to have a carbon footprint of approximately 2.2 kg CO2 per barrel of oil equivalent at plateau production, significantly below the industry average.OMV Petrom and Romgaz each hold a 50% stake in the Neptun Deep project. OMV Petrom acts as the operator, while Romgaz (through Romgaz Black Sea Limited) is the non-operator. Gas marketing is handled separately by each titleholder.OMV Petrom is the largest integrated energy producer in Southeast Europe, with an annual group-level oil and gas production of approximately 38 million boe in 2025. The Group has an annual refining capacity of 4.5 million tonnes and operates a high-efficiency 860 MW natural gas-fired power plant. In the retail petroleum products market, the Group is present in Romania and neighboring countries through approximately 780 filling stations under two brands: OMV and Petrom.OMV Petrom is listed on the Bucharest Stock Exchange, with 28.1% of its shares being free-floating. At the end of 2025, Romanian shareholders held approximately 45% of the shares (of which the Romanian state held 20.7%, while 24.4% were held by Romanian pension funds as well as other Romanian individuals and legal entities). OMV Aktiengesellschaft held 51.2% of OMV Petrom's shares, and the remaining 3.7% were held by other foreign investors.Romgaz is the largest natural gas producer and main supplier in Romania. The company is listed on the Bucharest Stock Exchange (BVB). The Romanian state is the majority shareholder, holding a 70% stake. Romgaz conducts geological exploration to discover new gas reserves, produces natural gas by exploiting fields within its portfolio, engages in underground gas storage, performs well interventions, major overhauls, and special well operations, and provides professional technological transport services.In 2013, Romgaz expanded its scope of activity by incorporating the Iernut thermoelectric power plant, thereby becoming an electricity producer and supplier. On August 1, 2022, it became the sole shareholder of Romgaz Black Sea Limited (formerly ExxonMobil Exploration and Production Romania Limited) following the completion of the acquisition and transfer of all shares issued by ExxonMobil Exploration and Production Romania Limited, which holds 50% of the rights and obligations under the Petroleum Agreement for the deep-water zone of the Neptun XIX offshore block in the Black Sea.