Cristian Hubati graduated the Faculty of Electrical Engineering from Polytechnic University of Bucharest in 1995 and holds a master’s degree in Business Administration from Open University Business School, UK and also a postgraduate certificate in Board Practice and Directorship from Henley Business School, UK. Cristian Hubati has 20 years of experience in the oil and gas industry. He joined OMV Petrom in 2007 and he held since then various management positions in the OMV Group. He was appointed member of the OMV Petrom Executive Board starting April 17, 2023.
Dear Mr. Hubati, after 20 years of experience in the oil and gas industry, both locally and internationally, how do you see the evolution of the Romanian hydrocarbon market compared to the situation in the region, especially in the upstream sector?
Cristian Hubati: If we look at the oil and gas industry through the lens of the last two decades, we see a major transformation. Twenty years ago, coal still played a key role in electricity generation, environmental concerns and strict safety standards were just taking shape, and Europe was almost entirely dependent on Russian gas. At the same time, the Romanian energy sector was coming out of a prolonged period of underfunding of investment needs, both in production and infrastructure.
Even so, Romania has benefited from an important advantage: the existence of its own oil and gas resources and a traditional industry, which has allowed us to maintain a degree of energy independence above the European average. In Europe, things have changed radically. Environmental standards have become increasingly stringent, energy crises have reshaped priorities, and natural gas—once considered a byproduct of the oil industry—has become a central resource for heating, industry, and electricity generation.
Today, we are in a new phase, where the energy transition is happening, but it has to be balanced with the need to maintain the competitiveness of the economy and affordability for the population. It is a process where sustainability, security and keeping energy affordable must go together.
Romania also has a privileged position in the current context. It has relevant resources and a unique strategic opportunity in the region: Neptun Deep – the Black Sea gas project. With cumulative investments of up to €4 billion, Neptun Deep is the largest natural gas project in the European Union and will unlock 100 billion cubic meters of gas, with the potential to transform Romania into a regional energy security provider.
Natural gas remains an essential fuel for the energy transition: it replaces coal, reduces emissions and underpins electricity systems as renewable energy grows, but these sources are intermittent.
The exploration & production activity is a key pillar for OMV Petrom. What share did this sector have in the company’s achievements in recent years? What is the value of investments directed to this division in the last period – onshore and offshore operations? What about the future?
Cristian Hubati: Exploration and production activities are part of OMV Petrom’s DNA and remain a central pillar of our integrated business model. We produce crude oil that is processed at the Petrobrazi refinery and reaches the filling station network in the form of fuel – covering about 35% of market demand. We also produce natural gas, which is capitalized by the Gas & Power division, either for electricity generation or through sales to customers. This integrated model offers an important advantage: a “natural hedging”. A recent example is 2025 – when the price of crude oil was low but margins on petroleum products were strong, partially offsetting the decline in exploration & production results.
The E&P division constantly contributes to the Group’s operational performance and generates the resources needed to finance investment projects. Over the last five years, investments in Exploration & Production amounted to approximately RON 17.3 billion, representing 66% of OMV Petrom’s total investments. It confirms that upstream remains the core of our development.
The Neptun Deep project is our flagship project. Since the final investment decision, a significant part of the division’s annual investment budget has been allocated to this strategic project. In parallel, we have continued to invest heavily in our traditional activities: new wells, workovers to existing wells, infrastructure upgrades and optimizations. These investments are essential to continue to provide the conventional energy Romania needs now, until the new sources – renewables and Black Sea gas – come on stream.
Looking ahead, upstream remains a priority strategic area. The extension of onshore exploration licenses and the agreement with the Government on the principles of extending production licenses for another 15 years gives us the stability to plan new investments: “near-field exploration” projects, redevelopment of mature fields and upgrading of existing facilities. We have also updated the strategic objectives, which translates into additional investments of €1 billion towards exploration & production by 2030 and an increase in the annual production target from 160,000 boe/d to 170,000 boe/d.
© Photo: OMV Petrom
What are the company’s most important recent hydrocarbon projects/discoveries?
Cristian Hubati: Exploration is fundamental to countering the natural decline in production, ensuring that new reserves are identified that can maintain current output levels. The recent extension of onshore and offshore exploration licenses has set the stage for these activities to intensify.
The Black Sea is central to our strategy, and we have offshore exploration planned in Bulgaria in the Han Asparuh block and in Romania in the Neptun block.
In Bulgaria, we are joined in the exploration partnership by NewMed Energy, with a 45% stake, and the Bulgarian state, through BEH, with 10%. OMV Petrom is the project operator and holds a 45% stake. Exploration drilling began at the end of last year, and the program calls for two wells. The first well reached its target, but the results were below our expectations. Next, we focus on the second well, which targets a distinct geological structure.
In Romania, we are considering a new deep exploration well in the Neptun Block, Anaconda, to be drilled with the same rig currently drilling the production wells of the Neptun Deep project.
The fact that we are operating two deep offshore drilling rigs simultaneously in two different countries is a remarkable achievement for our team.
In parallel with our work in the Black Sea, we continue to explore the onshore potential. Although Romania’s onshore fields are mature and have been exploited for decades, there are still exciting opportunities. A recent example is the gas discovery at Spineni in Oltenia. Although the volumes are smaller compared to what can be discovered offshore, such projects have one important advantage: proximity to existing infrastructure. This means that they can be brought into production in a relatively short time and with low investment, generating additional volumes that help mitigate the natural decline of mature fields.
Thus, projects in the Black Sea and traditional onshore areas together form a balanced portfolio. Offshore brings the opportunity for significant resources with a major long-term impact, while onshore contributes discoveries that can go into production more quickly. All these efforts have a common goal: to strengthen energy security – to produce the energy Romania needs.
The Neptun Deep project, one of Romania’s biggest energy investments in the last 30 years, is progressing faster than originally planned and is expected to start gas extraction in the first part of 2027. What benefits does this investment bring to Romania and the European Union by 2030? Will offshore production in the Black Sea play a strategic role in the country’s future energy mix?
Cristian Hubati: Neptun Deep is a strategic project for Romania and the entire region, being the largest gas project in the European Union. Work is on schedule, with first production expected in 2027.
Once production starts, about 8 billion cubic meters of gas will enter the market annually. This volume will enable Romania to fully cover its domestic consumption and contribute to the region’s energy security, consolidating its status as a reliable supplier in a European context where alternatives to Russian gas are essential. In 2027, Romania will be the largest gas producer in the European Union with the entry into production of the Neptun Deep project.
The economic impact is equally important: investments of around €4 billion and direct contributions to the state budget estimated at around €20 billion over the lifetime of the project, along with positive effects in related industries – from services and logistics to the development of local technical skills.
For the European Union, Neptun Deep brings an additional domestic source of gas at a time of reduced import dependence. Romania will have the capacity to support neighbouring countries such as Moldova and Ukraine, which in the past relied on Russian resources.
Looking ahead to 2030, Black Sea gas will continue to play a key role in Romania’s energy mix. It will contribute to the stability of the gas system, and, in the electricity sector, it will feed the new flexible gas-fired capacities needed to support the accelerated integration of renewable energy. In this way, Neptun Deep is not just a production project, but a strategic investment that strengthens Romania’s long-term security and energy balance.
Unlocking the Black Sea’s potential as a reliable regional energy source requires significant investment, access to cutting-edge technologies and risks. How is OMV Petrom doing in these areas?
Cristian Hubati: OMV Petrom has more than 40 years of experience in offshore operations in the Black Sea, which gives us a solid foundation for complex projects such as Neptun Deep and exploration activities in the region.
The Neptun Deep project will integrate some of the most advanced technologies in the industry. For example, we will use the “digital twin” concept that allows real-time, remote monitoring and operation of the entire production infrastructure in a safe and secure way. The materials and equipment for Neptun Deep are developed specifically for the deepwater environment, where resilience and accuracy are critical.
This combination – operational expertise, cutting-edge technology and a strong safety culture – allows us to responsibly harness the Black Sea’s potential to provide the energy the economy needs.
Offshore investment projects in the Black Sea area are complex, characterized by a few specific challenges. What challenges and obstacles do you encounter, given the HPHT environmental conditions, and how does OMV Petrom manage technological risks in projects in the area?
Cristian Hubati: Neptun Deep is not a HPHT (High Pressure, High Temperature) project. However, deep offshore drilling remains among the most complex projects in the industry and requires rigorous planning and flawless execution.
The main challenges relate to the distance from shore, variable weather and sea conditions, the complexity of underwater equipment, and the logistics required to coordinate operations more than 100 kilometres offshore. We work with international partners with proven deepwater expertise, making Neptun Deep a truly global project.
The infrastructure is produced in different regions of the world, using state-of-the-art technology: the production platform is built by Saipem in Italy and Indonesia, and the umbilical cables are manufactured in Scotland. Subsea equipment and control systems are designed to operate in specific marine environmental conditions – pressure, salinity, lack of oxygen – to high standards of resilience and safety.
Technological risk management is integrated at every stage of the project. We apply the highest safety standards and draw on OMV Petrom’s decades of experience in offshore operations, complemented by the expertise of global suppliers. This combination allows us to reduce risks and ensure responsible and efficient operations in the Black Sea.
In order to maintain a steady production of hydrocarbons, the shortfall in production due to natural decline should be offset by newly discovered and recently produced quantities. What is the situation of mature fields and what is the current rate of decline? What measures do you envisage to increase/maintain the recovery factor?
Cristian Hubati: Mature fields naturally have an annual decline in production. However, through our optimization programs, last year we managed to reduce the annual decline to around 4%, the second-best consecutive performance in the last eight years. New well drilling, workovers, modernization of facilities and past field redevelopment projects contribute to this result.
In addition, small discoveries close to existing infrastructure can be quickly integrated into production and help mitigate onshore decline. For larger volumes in the medium term, the potential lies in less explored areas, such as the depths of the Black Sea. By combining the optimization of mature fields with new discoveries, we aim to have sustainable hydrocarbon production in the medium term so that we can continue to provide the energy Romania needs.
© Photo: OMV Petrom
As part of the company’s medium- and long-term sustainability strategy, in the current market context, which directions do you see as key for the exploration & production segment? How is the Exploration & Production division involved in OMV Petrom’s transition to low-carbon energy?
Cristian Hubati: The Exploration & Production division plays an important role in the company’s transition to lower-emission energy. We focus primarily on natural gas, which remains Europe’s transition fuel and the cleanest fossil fuel option. Used in electricity generation, gas has much lower emissions than coal and provides the flexibility to balance the grid during periods when renewable generation is down.
We aim for natural gas to account for around 70% of our production by 2030, and to this end we are optimizing our portfolio and developing new resources – the Neptun Deep project being the most relevant example. In parallel, we are looking at technologies that can contribute to the energy transition, such as carbon capture and storage or geothermal energy. There are areas where we can capitalize on our expertise, but we are talking about solutions that are still in their early stages, that need technological maturation and the development of functioning markets to become economically feasible.
Reducing the impact of our operations remains a key pillar: we are constantly working to reduce emissions, monitor and eliminate methane emissions and maintain high safety and environmental standards.
The energy transition is an ongoing process, and we are adjusting our pace to remain competitive and responsible at the same time.
At the 2024 level, we have achieved an 80% reduction in methane emissions from Exploration & Production activities compared to 2019, and emissions from OMV Petrom operations (Scope 1-2) have decreased by 17%.
What factors do you consider having a major contribution to increasing the efficiency and productivity of the activity in the area you coordinate?
Cristian Hubati: Today, our production comes largely from mature fields, where operational efficiency and cost control are essential. In this context, Neptun Deep will represent a major change once it comes online in 2027: it will bring significant additional volumes at a cost of around $3/barrel, well below the current level of almost $18/barrel at the end of 2025.
For traditional activities, streamlining and optimizing operations remain a priority, without compromising on safety and security. We have implemented a new operating model in exploration & production that combines gas and oil expertise into a single structure and provides the entire organization with shared project, exploration and technical capabilities. This model enables standardized processes, rapid knowledge transfer and a unified way of working across the division.
Digitization, automation and close collaboration between teams complement this framework, helping us to maintain a high level of efficiency in an increasingly competitive sector.
What are the current priorities for OMV Petrom’s exploration & production activity in Romania and the region? What will happen to onshore & offshore hydrocarbon production in the future?
Cristian Hubati: Our number one priority is the implementation of the Neptun Deep project, Romania’s most important energy project in recent decades and a pillar for increasing gas production in the region. In parallel, we continue traditional exploration & production activities, with a focus on safety, efficiency and optimizing the operational footprint.
Although Neptun Deep is the most visible project, current investments in the traditional business are on a comparable level to Neptun Deep: we are drilling new wells, carrying out workovers and upgrading infrastructure to control the decline in production from mature fields.
At the end of last year, we obtained the extension of onshore & offshore exploration licenses and reached an agreement on the principles for the extension of production licenses. This framework of stability and predictability is essential for us, because it allows us to continue and even increase our investments: additional €1 billion by 2030 will be redirected towards traditional operations and regional gas growth.
Looking to the future, onshore production will continue to be important, but with a predominantly stabilizing role, while significant growth in volumes will come from offshore, in particular from Neptun Deep. Together, these directions allow us to maintain a balanced portfolio and secure the energy Romania needs for the long term.