Black Sea Oil & Gas reiterates decision to start offshore gas production in 2019

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Black Sea Oil & Gas (BSOG) said it aims to start production at two gas fields off Romania by 2019, becoming the first company to tap the country’s vast offshore resources.

The Romanian company, controlled by private equity firm Carlyle Group, discovered two wells holding an estimated 10 billion cubic metres of gas in 2008 some 120 kilometres offshore, where it has rights over the XIII Pelican and XV Midia Shallow blocks, reports.

“We’re hopeful for the first gas in 2019,” Chief Executive Mark Beacom said in an interview for the Reuters Central & Eastern Europe Investment Summit, conducted at his office on Wednesday.

As ‘Romania Journal’ reported, BSOG has discovered in the Romanian shelf of the Black Sea between 10 and 20 billion cubic meters of natural gas and the investments aiming to start production in 2019 could reach USD 500 million, Mark Beacom, general manager, said at mid February. He estimated the project will produce about 10% of Romania’s consumption for five years.

Mark Beacom said the total investments in this concession were at the time of about USD 200 million. He added it is difficult to estimate the total amount to be invested until the entry into production because it could include further investments due to future discoveries. The total amount could possibly reach USD 500 million.

In April, BSOG together with its co-venture partners announced the awarding of a contract for the drilling of two offshore exploration wells located in the XV Midia Shallow Block, Romanian Black Sea continental shelf, to the local offshore drilling services provider GSP Offshore SRL (“GSP”).

The cantilever-type jack-up drilling rig “GSP Uranus” has been contracted by BSOG for the drilling of the two exploration wells in water depths up to 100m scheduled to commence in Q4 2017. Auxiliary services such as aviation, logistics and offshore service vessels to support the drilling operations have also been contracted with GSP.

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