Romgaz could issue bonds or take loans to finance Neptun Deep, Răzvan Popescu, CEO, Romgaz, said at a conference. He also said that the Neptun Deep project is meeting investors’ expectations in terms of profitability.
“The Neptun Deep project is in the last stages before the start of the works, we are in the procurement process, the last offers are being made regarding EPC 1 and EPC 2. The operator (OMV Petrom, e.n.) must make the final investment decision. We are ready in this sense, we have budgeted for 2023 expenses with the Neptun Deep project based on the data we assumed together with the operator OMV Petrom, and we are ready from all points of view for the start of the works,” said Răzvan Popescu.
“Such projects are usually not financed by own funds. Given that oil&gas projects are generally financed through debt issues and bond issues, we have the same plans. At the moment we are looking at both a collateralized loan, at the same time we can also look at bonds. For me, from the beginning the main idea was bonds with different maturities. We are looking at 5-7-10 years, probably in euros, to synchronize them with the bond curve issued by the Romanian state. I don’t see a problem with this in terms of future investment. And the production we have at the moment can support such an investment,” added Răzvan Popescu.
He also said that Romgaz is in the phase of the feasibility study for a new LNG terminal, and the contract with Socar represents a “safety net” for the safety of supply.