Romania, Adoption of revised Offshore Law delayed for the next week

, SEE Energy News

Leader of the Social Democrat Party (PSD) Marcel Ciolacu said that the ruling coalition will submit the draft Offshore Law to the Parliament next week. He said the same the week before.

According to Ciolacu, the revenues will be distributed in proportion of 60 % to the Romanian state and 40 % to the investing companies, but the state will retain a total of 64 % after applying all taxes.

CEO of Black Sea Oil & Gas (BSOG) Mark Beacom said that current legislation discourages the exploitation of resources already discovered in the Black Sea and will further discourage any producer, including BSOG, from seeking even more resources. The partners of the MGD project have continuously received assurances from Government and various politicians that this tax issue applied to the offshore area will be settled, and, on this basis, the MGD project has continued. Instead of solving this problem as promised, other measures to undermine the producers are being implemented, BSOG CEO concluded.

In the past few years, several Romanian Governments promised to amend the Offshore Law, which currently proscribes high taxes on offshore gas producers, thus prolonging the start of the Black Sea gas exploitation.

OMV Petrom, the operator of Neptun Deep license, said that the final investments decision will be made in 2023 and will be dependent on promised amendments to the Offshore Law.