OMV chief in Romania today

The head of OMV is coming to Bucharest today to negotiate with the Government representatives the amendment of the Offshore Law. This visit takes place in the context in which the Romanian state was sued, claiming provisions from the Offshore Law, which would not be to the liking of the Austrian company. The Austrians want to be able to have more freedom in exporting gas from the Black Sea to the west.

OMV CEO Alfred Stern will meet, on Monday, at the Victoria Palace with Prime Minister Marcel Ciolacu, PNL President Nicolae Ciucă and Deputy Prime Minister Marian Neacşu also participating in the discussions.

OMV Petrom sued the Romanian state at the International Court of Arbitration in Paris – ICC, claiming certain provisions of the offshore law that impose some limits on the way it can dispose of natural gas production from the Black Sea, according to the US government.

The information regarding the new litigation came just a few hours after the announcement of OMV Petrom’s decision to switch, together with Romgaz, to the exploitation of the Domino and Pelican Sud commercial natural gas fields in the Neptun Deep Perimeter.

The complaint is also directed against Romgaz Black Sea Limited, the Romgaz subsidiary bought from ExxonMobil and which operates the Black Sea field together with OMV Petrom.

Austria wants to be able to export as much gas as possible to western Romania OMV Petrom’s complaint seeks to change the offshore law regarding how the company can dispose of the gas produced from the Black Sea. As the law is now, domestic consumption must be ensured with Black Sea gas, which is not to Austria’s liking.

“Since the offshore law was approved, we have said that we are waiting for clarifications. It is not a new topic. I have not received these clarifications. Are important. The project is ready and moving forward. We asked for clarification between the offshore law and the concession agreement. An example is Article 21. I think we will find these solutions. The project is moving forward regardless of what happens with the arbitration process. The project timeline will not be impacted at all,” said Christina Verchere, CEO of OMV Petrom, quoted by Financial Intelligence.