In June 2024, during public communications about the Neptun Deep offshore gas project, Christina Verchere, CEO of OMV Petrom, stated that “the Neptun Deep project does not induce a significant impact on environmental and socio-economic factors” and “is a strategic project for Romania and the EU, it will contribute to the country’s energy independence and economic growth”. This statement is false.
What is the Neptun Deep project?
Neptun Deep is a joint offshore gas exploitation project operated by OMV Petrom (50%) and Romgaz (50%). It’s located approximately 160 km off the Romanian coast in the Black Sea, at depths exceeding 1000 meters, and targets reserves estimated at over 100 billion cubic meters of natural gas. Production was first expected to start in 2025, but the date now changed to 2027, and the project has been promoted as a key step toward strengthening Romania’s and Europe’s energy independence and reducing reliance on natural gas.
The project was already contested by independent experts and environmental organizations. Greenpeace Romania and Bankwatch argue that any fossil fuel extraction project contributes to CO2 emissions and delays the transition to renewable energy. Researchers from Ovidius University of Constanta highlight possible long-term cumulative effects on marine ecosystems, particularly on species sensitive to noise and sediment resuspension.
The statement above highlights Romania’s strategic importance in the current European energy crisis and emphasizes that the 100 billion cubic meters of natural gas could provide a significant benefit to the state. According to the International Energy Agency (IEA), this amount equals roughly three to four months of Europe’s normal gas consumption. For context, Europe’s largest gas field, Groningen, which once supplied around 10% of European demand, was shut down in 2023 despite still containing about 470 billion cubic meters of gas, due to environmental risks linked to continued extraction. Due to earthquakes caused by gas extraction, the northeastern Netherlands has experienced land subsidence of up to 30 cm, and over 1000 earthquakes have occurred in the past 40 years.
The main environmental issues: gas emissions and noise pollution
The main environmental issues arising from extraction can be divided into two categories: 1. greenhouse gas emissions, gases that trap heat in the Earth’s atmosphere, contributing to rising global temperatures and local population, including air pollution from exhaust and dust, water contamination, and 2. noise pollution, both on land and underwater. According to OMV Petrom, the two offshore fields could produce around 100 billion cubic meters of natural gas, the equivalent of 65 million tons of methane. When used for energy, methane must be burned, releasing roughly 2.75 tonnes of CO2 for every tonne of gas. But that’s not the only concern, a University of California, Berkeley report estimates that between 1.7% to 8% of methane leaks into the atmosphere during extraction, before processing even begins. Although methane is far more potent than CO2, according to the U.S Environmental Protection Agency, one tonne of methane traps as much heat as 30 tonnes of CO2. Taken together, under the most pessimistic scenario outlined by Berkeley researchers, gas extraction in the Black Sea could generate over 300 million tonnes of CO2 equivalent, nearly four times Romania’s total emissions last year.
According to the International Energy Agency (IEA), achieving net-zero emissions by 2050 requires a radical shift in energy policy. In its 2021 report, the IEA stated: “Beyond projects already committed as of 2021, there are no new oil and gas fields approved for development in our pathway, and no new coal mines or mine extensions are required”. This means that, to stay within safe climate limits, no new oil, gas, or coal projects should be approved. This includes offshore fields in the Black Sea.
In terms of local pollution, the project could threaten approximately 5600 species in the Black Sea, including algae, fish, dolphins, and the Mediterranean monk seal, a species classified as endangered. All of these organisms live within an ecosystem that could be easily disrupted by such a project. To reach the gas, the companies need to drill 10 wells, construct three subsea production systems, one offshore platform, and a 160 km-long pipeline connecting the platform to the mainland. Drilling and construction noise endangers dolphins and other animals in the Black Sea that rely on their hearing to survive. Loud underwater noises can permanently damage their hearing. Without hearing, the animals lose their orientation and the ability to find food. In the most severe cases, they can end up stranded on the shore. Algae play a critical role in carbon absorption, being more efficient at capturing CO2 from the atmosphere than a tree.
In coastal areas, extraction activities can impact local industries such as fishing and tourism. For example, in 2012, communities in Constanta and Tulcea, the biggest cities in the Black Sea coast, protested against shale gas exploration projects, citing risks to water resources and traditional livelihoods. These protests drew thousands of participants and ultimately led some companies to withdraw from Romania.
The social aspect: Safety
Rust covering the supporting beams of the structure have caused loud, recurring warnings of a potential environmental disaster. OMV Petrom’s negligence endangers everyone, from its employees to the most unexpected bystanders. After a fire in one of the company’s refineries killed a worker and heavily injured another in 2023, the company is now under investigation for jeopardizing employee safety. This shows not only environmental risk but also potential human resource risk.
Will Romania at least financially benefit from it?
According to OMV Petrom, an internal study estimates that the Neptun Deep project could bring approximately 20 million euros in revenue to the state budget and generate around 40 billion euros in economic value. Additionally, the project is expected to create or sustain nearly 9000 jobs. It’s important to note, however, that the study was commissioned by OMV Petrom itself, though conducted independently.
Who Owns the Project?
The Neptun Deep project is jointly owned by OMV Petrom and Romgaz. OMV Petrom is majority-owned by OMV Aktiengesellschaft, an Austrian company, with 51% of shares. Private individuals and legal entities hold 28-29%, while the Romanian state owns only 20%. Romgaz is 70% state-owned and 30% held by various private individuals and entities. In practice, this means that the Romanian state’s total stake in the project is less than half (approximately 45%).
Regarding taxes and revenues: OMV Petrom is headquartered in Romania and pays taxes directly to the Romanian state. Romgaz is also based in Romania but does not hold direct drilling rights in the offshore block. These rights belong to Romgaz Black Sea Limited, a subsidiary of Romgaz registered in the tax-free paradise Bahamas. OMV Petrom also notes that gas extraction is expected to last approximately 10 years. While jobs will be created during this period, it remains uncertain what will happen to these positions once the project is completed.
What is the alternative?
According to a report by the International Renewable Energy Agency (IRENA), within the next 10 years, Central and Eastern Europe could cover over one-third of its energy demand with renewable sources. Studies show that solar radiation in Romania, Hungary, and Bulgaria is 1.5 times stronger than in Germany or the UK, making solar energy particularly efficient in these countries.
Conclusion
The claim made by Christina Verchere is false. The project will generate greenhouse gas emissions, local pollution, and disturb sensitive marine ecosystems, threatening thousands of Black Sea species, including endangered animals. Methane leakage it’s a real threat that can cause higher total annual emissions. Similarly, the assertion that the project will drive substantial economic growth for Romania is overstated. While the project may generate revenues and create jobs, a large portion of the profit and strategic control will benefit OMV and private stakeholders, as the Romanian state holds less than half of the project. Furthermore, the long-term sustainability of jobs is uncertain once the project ends. In short, both the environmental and economic claims overstate the benefits and understate the risks, making the CEO’s statement a large misrepresentation.
RESEARCH | ARTICLE © Ilincad Celmare, Mihai Bugă, Risheka Joshi, Stine Cordes
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