OMV Petrom has not made a decision on Black Sea investments, main obstacle – the legal framework

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The current legal framework does not offer the needed premises for an investment decision worth billions in the Neptun Deep block, Petrom informs in the report on the first quarter.

“We are still willing to see the Black Sea deposits developed and we will continue the dialogue with the authorities in order to understand the steps ahead,” the company says.

At the end of March 2019, the Government approved Emergency Ordinance 19, amending GEO 114/2018, following the consultations with the players on the market.

“We believe that GEO 19 is a necessary development in view of returning to the liberalized market for natural gas,” Petrom says. According to the company’s preliminary assessment, the net impact of the decisions on OMV Petrom Group’s exploitation results in 2019 will be of minus EUR 40 million.

Last autumn OMV Petrom announced, after the release of the offshore law, that it has postponed to 2019 a decision regarding the investment in the Black Sea exploitation project, due to the Government, which needed too much time for the offshore bill.

The exploitation of Neptun block in the Black Sea is a joint venture with ExxonMobil.


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