Exxon to Sell Black Sea Gas Stake to Romania for $1 Billion

By Irina Vilcu and Kevin Crowley
Updated on November 2, 2021, 2:38 PM CDT
Source: Bloomberg

Exxon Mobil Corp. agreed to sell its 50% stake in a deepwater natural gas project in the Black Sea to Romania’s state-owned Romgaz SA for $1.06 billion.

The deal hinges on Romgaz SA obtaining approval from shareholders, according to a regulatory statement to the Bucharest Stock Exchange on Tuesday. Exxon confirmed the agreement in an emailed statement.

Exxon will turn over operatorship of the Neptun Deep project to Bucharest-based OMV Petrom, which owns the other 50% stake once the transaction closes. The two companies spent more than $1.5 billion in exploring and appraising the project since Exxon first invested in it in 2008, according to OMV Petrom.

Exxon is prioritizing key projects in Guyana, the U.S. Permian Basin as well as oil-refining and chemical build-outs since a strategic reboot last year, when the company posted its first annual loss in four decades. The recent upswing in commodity prices provides an improved opportunity to sell assets, Chief Executive Officer Darren Woods said last week.

Romgaz’s purchase of Neptun Deep may clear the way for the project to move forward even as an ongoing Romanian government crisis clouds the prospects for tax-law changes. OMV Petrom has repeatedly warned that 2021 is a crucial year for the project, signaling time is running out for Romanian authorities to deliver on promised tax modifications.

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With all the drilling, engineering studies, and travel spent on that asset over the past 20 years, probably lost money at $1.06 Billion.

If EM had the ba--s to commit to developing that asset 10 years ago, we would be producing gas this year just as the unregulated non oil price linked gas price skyrockets this winter in Europe.

Another missed opportunity due to slow decision process.

@1cmn+1dCinqNp. In terms of upstream assets you have a point. From an employee point of view however the focus is minimizing employees in high cost centers in favor of the gbc model. This will make things unpleasant for employees in any oecd country for years to come. US included

Oh god please don’t remind any of us about our psychopath Upstream colleagues. Good days of pure engineering for company good are gone.

Upstream is a hunger game by many to keep hounding like dogs for either

- an expat assignment (for extra perk to pocket without an ounce of care for real benefit to the company)

- to make many many business class international trips to Europe and Asia on company (unbelievable to see such lowly greed to collect as many frequent traveler perks).

Another reason why us Europeans in the company will be leaving at a higher rate next year. Exxon becoming ever more Americas centric.

About time!

Now that all the "foreign business trips" and "tours" have been plentiful made by a plethora of Upstream employees, the main purpose for such a project is over.

The initial work was never about company profit, it was a means to freely access many many expensive business trips to Europe and worldwide with an excuse of evaluating technologies and meetings with possible contractors.

Check your upstream colleagues and you will know who is addicted to business travel, expat assignments. Their sole purpose of existence in the company is draining the money.

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Exxon to Sell Black Sea Gas Stake to Romania for $1 Billion

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