Neptun Deep

Location and Geology

• The Neptun Deep project is situated within the Neptun Deep block in the Black Sea, approximately 160 km offshore from the Romanian coast. The block spans an area of about 7,500 square kilometers and is characterized by water depths ranging between 100 and 1,000 meters.

Project History

• The concession agreement for the Neptun Deep natural gas perimeter was granted to OMV Petrom and ExxonMobil in 2000, with the exploration and development rights valid until 2030, later extended to 2045.
• Exploration activities began in earnest in 2009, with ExxonMobil acquiring over 3,000 square kilometers of 3D seismic data. The first deepwater well, Domino-1, was drilled in 2012, confirming the presence of natural gas. Further exploration and appraisal activities continued until 2016, with more than €1.5 billion invested during this period.
• In 2019, ExxonMobil announced its decision to exit the project due to regulatory changes and low global oil and gas prices. Romgaz acquired ExxonMobil's Romanian upstream affiliate in May 2022, and OMV Petrom became the operator of the project.

Ownership and Partners

• The project is jointly owned by OMV Petrom and Romgaz, each holding a 50% interest. OMV Petrom is the operator of the project.

Reserves and Production

• The Neptun Deep field is estimated to contain recoverable natural gas resources of approximately 100 billion cubic meters (bcm). The natural gas is of high purity, comprising 99.5% methane, which reduces processing requirements.
• Once fully developed, the project is expected to produce around 8 billion cubic meters (bcm) of natural gas annually for nearly ten years, starting from 2027. This production level is equivalent to about 30 times the current annual demand of approximately 4.3 million households.

Development Plan

• The project involves the development of the Domino and Pelican South commercial natural gas fields. The Domino field is located at a water depth of approximately 1,000 meters, while the Pelican South field is at a shallower depth of about 120 meters.
• The infrastructure includes:
  • Ten wells: six in the Domino field and four in the Pelican South field.
  • Three subsea production systems.
  • Associated flow lines and pipelines.
  • An offshore platform located in shallow water.
  • A main natural gas pipeline to Tuzla, approximately 160 km long.
  • A gas measurement station.

Technical Details

• The gas from the deepwater fields will be processed at the unmanned shallow water platform. The subsea production systems will be connected to the platform through pipelines and flexible, electrically heated flowlines to enhance reliability and reduce operational costs.
• The entire infrastructure will be remotely operated through a digital twin, optimizing processes and improving energy efficiency and environmental performance.

Contractors and Contracts

• In March 2023, OMV Petrom and Transgaz signed a contract worth nearly €276 million to deliver the natural gas to the National Transport System via the Tuzla entry/exit point.
• Saipem was awarded a €1.6 billion contract for the development of the Neptun Deep offshore infrastructure, including management, engineering, procurement, fabrication, assembly, maritime transportation, installation, testing, and commissioning services.

Investments and Economic Impact

• The total investment for the project is estimated to be up to €4 billion, equally shared between OMV Petrom and Romgaz.
• The project is expected to significantly contribute to Romania’s energy security, independence, and economic development. It will position Romania as the largest gas producer in the European Union and support the country's energy transition.

Timeline

• 2008: OMV Petrom and ExxonMobil formed a joint venture for the deepwater sector of the Neptun Block.
• 2012: First natural gas discovery made by the Domino-1 well.
• 2014-2015: Second drilling campaign, including the discovery of the Pelican South field.
• 2019: ExxonMobil announced its exit from the project.
• May 2022: Romgaz acquired ExxonMobil's Romanian upstream affiliate.
• June 2023: Final investment decision (FID) taken by OMV Petrom and Romgaz.
• 2024: Drilling activities planned to commence.
• 2027: Expected first gas production.

The Neptun Deep project is a landmark initiative for Romania's energy sector, marking the country's first deepwater offshore natural gas project and positioning it as a significant player in European gas production.