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Black Sea Oil & Gas to go ahead with USD 400 million Romanian offshore project

Gasoil News - Published on Mon, 11 Feb 2019

Image Source: Reuters
Reuters quoted Romanian-based Black Sea Oil & Gas, controlled by private equity firm Carlyle Group LP, as saying that it has decided to go ahead with its USD 400 million offshore gas project in Romania, the first such project to be developed in 30 years. The Midia Gas Development Project will extract an estimated 10 billion cubic metres of gas some 120 kilometres offshore in the Black Sea. Black Sea Oil & Gas will extract the gas in a joint venture with Italian producer Gas Plus International B.V. and investment group Petro Ventures Resources, which hold 15 and 20 percent of the project, respectively.

The company said that infrastructure works should be completed in the first quarter of 2021.

Romania's government approved a series of taxes via emergency decree in December without an impact assessment or public debate, including a 2 percent tax on turnover for energy firms and a cap on gas prices.

The decree was in addition to other new laws for offshore drilling stipulating that Romanian companies would need to sell at least half their annual gas output domestically.

BSOG said in a statement the investment decision was on the assumption that it and its partners will "be able to restore all of their rights with respect to the removal of any newly imposed supplemental taxes and fees as well as removing any restrictions on the free movement of gas."

The statement said that such a move would not only make the Midia Gas Development Project a viable investment, but it would also encourage further gas developments in the Black Sea.

Source :

Posted By : Rabi Wangkhem on Mon, 11 Feb 2019
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