- OMV Petrom farms down 50% of the Han Asparuh block to NewMed Energy

OMV Petrom, the largest integrated energy producer in Southeastern Europe, announces a strategic partnership with NewMed Energy Balkan, a subsidiary of NewMed Energy, to advance exploration efforts in Han Asparuh offshore block in Bulgaria. NewMed Energy is Israel’s leading energy partnership in the exploration, development, production and sale of natural gas and condensate. Parties have signed an agreement, through which OMV Petrom will transfer 50% interest in the project to NewMed Energy Balkan, while maintaining its role as operator. In exchange, NewMed Energy will bear a significant part of the costs of the exploration and appraisal operations.

The closing of the transaction is expected to take place in the first half of 2025, after fulfilment of several commercial conditions and approval of the Bulgarian relevant authorities.

The exploration in Bulgaria's Han Asparuh offshore block is extremely important for ensuring the energy security in Bulgaria and the region.

This collaboration allows both parties to share the risks and costs associated with the project, thereby facilitating the advancement of exploration efforts.

Cristian Hubati, member of OMV Petrom Executive Board, responsible for Exploration and Production: “With operator experience in shallow and deep waters of the Black Sea, OMV Petrom brings extensive expertise to the region. Given its proximity to Romania and geological similarities, Bulgaria is a natural extension of our offshore activities. Advancing exploration activities in Bulgaria has the potential to support the security of energy supply in Bulgaria and the region.”

Han Asparuh is an exploration block located in the western Black Sea in Bulgaria, south of the Neptun Deep block in Romania and has an area of 13,712 km² with water depths slightly below 2,000 m. Exploration activities started in 2012 and included geological and geophysical surveys and the drilling of three exploration wells. An extensive 3D seismic campaign was finalized in May 2020 to identify potential drilling targets.

OMV Petrom in the Black Sea

OMV Petrom has over 40 years of experience in oil and gas production in the Black Sea. In the Romanian sector, it operates several blocks, producing oil and gas in the shallow waters. In deepwater, OMV Petrom, in partnership with Romgaz, is developing the Neptun Deep block, with estimated volumes of 100 billion cubic meters of gas. First gas production from Neptun Deep is expected in 2027.

About OMV Petrom

OMV Petrom is the largest integrated energy producer in Southeastern Europe, with an annual Group hydrocarbon production of approximately 41 million boe in 2023. The Group has a refining capacity of 4.5 million tons annually and operates an 860 MW high-efficiency gas-fired power plant. The Group is present on the oil products retail market in Romania and neighbouring countries through approximately 780 filling stations under two brands – OMV and Petrom.

OMV Petrom is a company in which, as of end-2023, Romanian shareholders hold over 43% of the shares (of which the Romanian state, through the Ministry of Energy, holds 20.7%, and 22.5% are owned by pension funds in Romania, to which are added almost 500,000 individual investors and other Romanian entities). OMV Aktiengesellschaft, one of the largest listed industrial companies in Austria, holds a 51.2% stake in OMV Petrom, and the remaining 5.6% are held by other foreign investors. Of the total shares of OMV Petrom, 28.1% represents the free float on the Bucharest Stock Exchange.

OMV Petrom is one of the largest contributors to the state budget, with approximately 42 billion euro in taxes and dividends paid between 2005 and 2023. During the same period, the company invested approximately 18 billion euro.

Since 2007, OMV Petrom has included corporate responsibility principles into its business strategy. Between 2007 and 2023, the company has allocated around 160 million euro to develop communities in Romania, focusing on environmental protection, education, health, and local development.

On July 29th, 2020, OMV Petrom announced its support for the recommendations issued by the Task Force on Climate-related Financial Disclosures (TCFD) regarding risks and opportunities on climate change. OMV Petrom annually reports on the progress made in implementing these recommendations.

About NewMed Energy

NewMed Energy is Israel’s leading energy partnership in the exploration, development, production and sale
of natural gas and condensate. The partnership was founded in 1993 as “Delek Drilling”, a subsidiary of the Delek Group.
In February 2022, as part of its expansion of operations in the Middle East and its entry into other areas of business,
the partnership decided to change its name to NewMed Energy.