Neptun Deep Project advances as OMV Petrom and ROMGAZ begin drilling first offshore gas well

Romania’s energy sector has reached a significant milestone with the commencement of drilling for the Neptun Deep project, an ambitious offshore gas initiative led by OMV Petrom and ROMGAZ. The two companies have started work on the first production well within the Pelican South field, a key component of the larger offshore gas block located approximately 160 km into the Black Sea. With a total investment of up to €4 billion, the project is on track to deliver first gas by 2027, positioning Romania as a pivotal natural gas supplier in the region.

Once fully operational, Neptun Deep project is expected to produce around 8 billion cubic meters of natural gas annually, contributing significantly to Romania’s domestic energy supply. The venture marks a major step toward reducing reliance on external gas imports, strengthening Romania’s energy security, and bolstering its role within the European energy market.

Why Is The Neptun Deep Project Critical For Romania’s Energy Independence?

The launch of drilling operations in the Pelican South field highlights the broader significance of the Neptun Deep project in shaping Romania’s energy future. OMV Petrom CEO Christina Verchere emphasized that the initiative will not only provide a stable source of natural gas for Romania but also contribute to the European Union’s ongoing efforts to diversify its energy supply away from external dependencies.

According to projections, the Neptun Deep project will generate approximately €20 billion in revenue for the Romanian government over its operational lifespan. This injection of capital is expected to drive further energy sector investments and support the country’s economic growth.

OMV Petrom’s Executive Board member for exploration and production, Cristian Hubati, noted that the first well is being drilled in waters about 120 meters deep, with the reservoir located approximately 2,000 meters beneath the seabed. Drilling operations across the Pelican South field and Domino gas field are set to continue through late 2026, with ten wells planned in total—four in Pelican South field and six in Domino gas field.

What Role Does ROMGAZ Play In The Neptun Deep Project?

For ROMGAZ, Romania’s leading natural gas producer, the Neptun Deep project represents a transformational opportunity. CEO Răzvan Popescu stated that the offshore development aligns with the company’s long-term energy strategy, reinforcing its position in both natural gas production and electricity generation.

Deputy CEO Aristotel Jude described the spudding of the first well as a testament to ROMGAZ’s commitment to executing the project efficiently, in partnership with OMV Petrom and regulatory authorities. He stressed that the development remains on schedule and that stringent safety measures will be followed throughout the offshore operations.

How Are Investors Responding To The Neptun Deep Project?

The launch of drilling at Neptun Deep project has attracted attention from investors, as it represents a major boost for both OMV Petrom and ROMGAZ. As of March 25, 2025, OMV Petrom S.A. (BVB:SNP) is trading at RON 0.731 per share, reflecting a modest 0.07% increase. Over the past year, the company’s stock has risen by 7.98%, with its market capitalization now standing at approximately RON 45.74 billion.

Similarly, S.N.G.N. Romgaz S.A. (BVB:SNG) has seen stable market performance, currently trading at RON 5.97 per share with a total market capitalization of around RON 23.01 billion. The continued progress of the Neptun Deep project could serve as a long-term growth driver for both companies.

Financial analysts suggest a ‘hold’ strategy for OMV Petrom and ROMGAZ, as the offshore gas development is expected to enhance production capabilities and revenue streams over the next decade. With first gas projected for 2027, the project could serve as a key factor in future stock performance, although investors should continue monitoring external market conditions and regulatory developments.

What Advanced Technologies Are Being Used In The Neptun Deep Project?

The Neptun Deep project is incorporating cutting-edge offshore drilling technologies to minimize environmental impact and enhance operational efficiency. The first well in the Pelican South field was spud using Neodrill’s CAN-ductor system, which reduces seabed disturbance while improving well stability.

Drilling is being conducted with the Transocean Barents mobile drilling unit, a high-specification rig contracted specifically for this project. Additionally, Halliburton Energy Services Romania and Newpark Drilling Fluids Eastern Europe have been engaged to provide integrated drilling services, including cementing, directional drilling, and well completions.

Beyond drilling, the project infrastructure includes three subsea production systems—one for Pelican South field and two for Domino gas field—along with a network of gathering pipelines, an offshore processing platform, and a primary gas pipeline connecting to the shore at Tuzla. The offshore platform is designed to generate its own electricity and will be operated remotely using a digital twin system.

One of the key design aspects of the project is that the natural energy of the gas reservoir will be used to transport gas to shore without requiring compression. This approach reduces carbon emissions, keeping the project’s environmental impact well below industry benchmarks.

What’s Next For The Neptun Deep Project?

While drilling operations have begun, the broader construction and development activities for the Neptun Deep project continue at full scale. The offshore production platform is currently being built, subsea infrastructure is in advanced stages of manufacturing, and a dedicated support vessel is under construction. Additionally, work on the natural gas metering station is progressing as planned.

OMV Petrom and ROMGAZ remain committed to delivering first gas from the Neptun Deep project by 2027. As Romania moves closer to harnessing its vast offshore gas reserves, this initiative is set to redefine the country’s energy landscape, ensuring greater supply security and strengthening its economic position within Europe’s evolving energy market.