Black Sea Oil and Gas is ready to increase its gas output by 25% during the winter season, according to CEO of BSOG Mark Beacom. The company has started gas production of 1 billion cubic meters per year from its Midia project in the Black Sea.
Beacom added that the BSOG’s ongoing dispute with the Romanian authorities must be resolved. In 2018, BSOG signed a long-term contract with the natural gas supplier and distributor Engie, but, in 2022, Romania imposed an obligation to all natural gas producers to sell part of their output on the regulated market. Individual quotas to be sold on the regulated market are set by the market regulator ANRE but are not public.
BSOG was fined earlier this year, and although this was not officially confirmed, the fine was most likely prompted by failure to meet the new regulatory requirements.