Austrian and Romanian energy companies have announced plans to tap into the vast natural gas reserves in the Black Sea, signaling Europe's commitment to diversify its energy sources away from Russian supplies. The decision comes after a prolonged period of anticipation.
OMV, the Austrian group, revealed on Wednesday its intention to invest a substantial sum of up to €4 billion ($4.4 billion) in the Neptun Deep project alongside its Romanian partner, Romgaz. The project encompasses one of Europe's largest gas deposits and is expected to position Romania as the continent's foremost gas producer. The Neptun Deep deposit holds an estimated 100 billion cubic meters of recoverable gas.
Anticipated to commence operations in 2027, the Neptun Deep project is poised to offer the region a dependable and secure energy source, according to Alfred Stern, the CEO of OMV. The development plan includes the exploitation of two natural gas fields, Domino and Pelican South, situated within the Neptun Deep offshore block.
While the development plan has gained approval from both OMV Petrom and Romgaz, it still requires the endorsement of the Romanian National Agency for Mineral Resources, as per the group's statement.
The realization of this initiative marks a significant milestone for Romania, particularly after a law unfavorable to offshore investments was amended by the country's parliament in May 2022. The previous law had caused ExxonMobil to withdraw from the Neptun Deep project towards the end of 2021, despite having invested approximately $2 billion jointly with OMV.
Romania boasts substantial gas reserves both onshore and offshore, positioning the country as a key player in the European energy landscape. Europe's efforts to reduce dependence on Russian oil and gas have been intensified following Moscow's invasion of Ukraine last year, making projects such as Neptun Deep vital for achieving greater energy security in the region.
