The Ministry of Energy issued the authorization document for the offshore works required for the production of natural gas in the XV Midia perimeter, operated by Black Sea Oil & Gas. The Authorization Act allows the construction of the offshore infrastructure of the Midia Natural Gas Development Project.
“This Act is a premiere in Romania’s offshore oil industry after 1989”, Energy Minister Anton Anton said in a press release. “This act is […] a sign of confidence that, together with the companies that have invested in exploration in the Black Sea, we can capitalize on the energy resources that we have”, the minister said.
Beacom: The impact of the new laws on BSOG investment plans is highly negative
The final investment decision has not yet been taken, given that the provisions of the Offshore Law promulgated in December 2018 have been criticized by operators of the Black Sea projects and the measures introduced by GEO 114/2018 raise new obstacles in starting major investments. “Taxing proposals in the Offshore Law contravene the guarantees and legal provisions offered by the Romanian state when investors entered into the concession agreements, are burdensome and likely to make Romania uncompetitive compared to other offshore jurisdictions”, said Mark Beacom, CEO of Black Sea Oil & Gas, in October 2018, in a statement released to Mediafax.
In spite of the unfavorable context, Black Sea Oil & Gas has continued, during the last six months, the procedures for starting the necessary works for gas exploration production in the XV Midia perimeter.