Background

OMV Petrom S.A. is Romania’s largest energy company and a subsidiary of OMV Aktiengesellschaft. The company operates in three segments: Exploration & Production, Refining & Marketing, and Gas & Power. Its main assets include the Petrobrazi refinery and the Brazi gas‑fired power plant, which supplies a significant portion of the national electricity grid.

Recent Agreement with the Romanian Government

On 9 December 2025, the Romanian government announced a comprehensive “principle‑based” agreement with OMV Petrom. The key provisions are:

  1. Extension of the Exploration and Production Licence
  • The licence covering the company’s on‑shore and offshore fields is extended for 15 years, until 2043.
  • The extension covers the full scope of operations, including new offshore development programmes such as the Neptun Deep and the planned Anaconda‑1 deep‑water drill.
  1. Increase in Royalties
  • The state will receive a 40 % increase in royalties (redevențe) on crude oil and natural gas extracted from the fields that were nationalised during the 1990s.
  • The adjustment also involves a revised tax regime for natural gas to encourage further investment in the sector.
  1. Renunciation of Litigation
  • OMV Petrom has agreed to forgo all arbitration and court proceedings in Paris and elsewhere against the Romanian state.
  • The agreement removes the legal uncertainty that has plagued the relationship for two decades.
  1. Strategic Objectives
  • The agreement is framed as a step toward energy independence for Romania, ensuring a stable supply of oil, gas, and electricity.
  • It also supports the company’s planned investments in the Brazi gas‑fired plant, which had been temporarily shut due to water shortages earlier in December.

Impact on OMV Petrom

  • Financial Position

  • The increase in royalties is expected to raise the company’s revenue from the nationalised fields, offsetting the higher cost of compliance with the new tax terms.

  • The 15‑year licence extension provides long‑term certainty for capital expenditure planning.

  • Operational Continuity

  • The removal of litigation allows OMV Petrom to focus resources on expanding its production portfolio, particularly in deep‑water projects that are projected to deliver natural gas by 2027.

  • Market Perception

  • The agreement stabilises OMV Petrom’s relationship with the Romanian state, potentially improving investor confidence.

  • The company’s stock, listed on the Frankfurt Stock Exchange, closed at €0.1867 on 8 December 2025, within a 52‑week range of €0.1169 to €0.2442.

Broader Context

The reform of the partnership reflects a broader trend of European energy firms renegotiating terms with host governments to secure long‑term supply agreements while managing regulatory risks. For Romania, the deal reinforces national control over critical energy assets and aligns with EU energy security objectives.

All information is derived from the cited news sources and the company’s publicly available fundamentals.