Offshore law tabled in Parliament on Friday. The state will win 60%, OMV and Romgaz – 40%

After months of discussions and negotiations in the Coalition, the draft offshore law was tabled in Parliament on Friday. The initiative aims to unblock investments in the Black Sea, ensure Romania’s energy independence and reduce dependence on Russian gas.

The bill stipulates that Romania will have the right of pre-emption for the acquisition of gas and also regulates onshore exploitation. The law also establishes a competitive tax regime in such a way that the distribution of revenues is made in a percentage of approximately 60% for the Romanian state and 40% for the investor.

At the same time, the law will remove the additional tax for companies in case of additional revenues obtained from the practice of prices higher than 85 lei / MWh “.  More precisely, for prices below 85 lei / MWh, the producers will not pay any additional income tax.

According to the Minister of Energy, Virgil Popescu, the first gases from the Black Sea will be extracted in the second half of this year.

“The first gas from the Black Sea will be released in the second half of this year and here we are talking about a production of about 1 billion cubic meters per year – Investors from Black Sea Oil and Gas are in an advanced stage of work, already having the minutes of reception upon completion of the works,” said the minister.

The law establishes the same fiscal framework for deep offshore and onshore investments, practically accelerating onshore investments in Caragele, Buzău County, the largest gas field discovered in the last 30 years in Romania. We estimate that the works will start here at the beginning of 2024.

At the Neptun Deep perimeter, the works will start next year and the first natural gas will come at the earliest at the end of 2026 – the beginning of 2027.

The leaders of the governing coalition, Prime Minister Nicolae Ciuca and PSD President Marcel Ciolacu sent a joint message after the tabling of the offshore law in Parliament, which shows that the project unblocks investments in the Black Sea, ensures Romania’s energy independence and reduces dependence on Russian gas. by stimulating investments in natural gas extraction.

PM Ciuca said on Monday that Romania is not very affected by the lack of energy and gas sources, because it has potential in both areas. He added that the first gas from the Black Sea could be received in the middle of this year.

According to him, about one billion cubic meters of natural gas will be extracted annually from the Black Sea.

“In order to ensure energy independence, in the Coalition we decided to assume the offshore law. Romania is not a country that is very affected by the lack of energy and gas sources. It has potential in both areas. We come with two components, one is to join the EU programs to develop new energy sources, we aim to develop renewable energy sources,” the Romanian prime minister pointed out.

 

PSD chairman, Marcel Ciolacu, had said last week that the Offshore had been tabled in Parliament under the signature of PM Nicolae Ciuca, his and of UDMR leader Kelemen Hunor.

“Under my signature, Prime Minister Nicolae Ciuca and President Kelemen Hunor the Offshore law is tabled in Parliament, so that we can look forward to the start of gas exploration in the Black Sea by 2027 at the latest,” Ciolacu said last Thursday.

He added that the project mentions that the Romanian state will be a priority for access to these gas fields. “It simply came to our notice then. First the Romanian state and the Romanian companies buy this gas, then the surplus can be exported. (…) What is certain is that the Romanian state will gain 60%, OMV and Romgaz, state-owned companies, 40% of the profits from the Black Sea gas. The novelty is this onshore approach, of great depth, those major deposits at great depth discovered in Buzău county, in Brăila county “, Ciolacu stated back then.

Regarding the independence of the gas resource from the Russian Federation, Ciuca mentioned that our country decided to use this law to ensure stability and legal predictability for the business environment in the field.

“There is a possibility that we will soon start investing in the Neptune Deep perimeter and ensure the exploitation of the Black Sea gas. At the same time, we ensure the exploitation of gas from the national territory from great depths, this investment being able to provide gas starting with the year 2024. From the Black Sea we have the opportunity to receive the first gas in the middle of this year, there is already an investment made by Black Sea Oil and Gas, they have already signed the receipt documents, there is the possibility to secure one billion cubic meters of gas annually through this investment , and at the end of 2026, the beginning of 2027, to have the first gases from the Neptun Deep perimeter “, PM Ciucă told an interview with Radio Romania Actualitati, the Romanian state radio broadcaster.

black seaenergy ministergas explorationgas fieldsMarcel Ciolacuoffshore lawOMVparliamentPM Nicolae CiucaromgazRussian gasstatevirgil popescu
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