Romania: Gov offers 36 potential sites for oil and gas exploration

15. April 2014. / SEE Energy News

National Agency for Mineral Resources of Romania offers concession on 36 perimeters for oil and gas, of which 28 are onshore and 8 in the Black Sea. In doing so, each has an area of ​​approximately 1,000 square kilometers.

In 2010, National Agency for Mineral Resources has proposed 30 perimeters on the tender, of which 11 are on the continental plateau of the Black Sea. Five of the 11 perimeters are in the area that was given to Romania after the dispute in The Hague regarding determination of the limits of the continental plateau”.

Last year, Romania had tax benefits in the mining and oil sector 315, 5 million euros while the bulk of these funds paid the two main gas producers – Romgaz and Petrom, according to the data of the National Agency for Mineral Resources.

In 2012, tax fees from this activity, compiled by the Romanian state, amounted to 316.6 million euros (one euro is exchanged for 4,463 Romanian lei at the exchange rate on April 10th, the Central Bank of Romania).

According to the predictions for production this year, representatives of the afore mentioned agencies expect an increase in fees on the basis of the Law of the oil. Compensation for the oil according to the law are calculated as per percentage of the value of production.

The applied rates vary between 3.5 and 13.5%, as for oil, as well as for natural gas, depending on the size of the site. At a time when the company Petrom was privatized, the Romanian state managed to retain the fee system within 10 years, more precisely, by the end of this year.

Romania now will need to select a new system, and its Government’s representatives announced that will be an increase in taxes, which are paying oil companies.

The newspaper “Ziarul Financiar” has quoted statements of the governor of the National Bank of Romania, Mugur Isarescu, at the symposium “Changes in the Romanian economy.” Isarescu, on that occasion, noticed that was a little mentioning on a high growth of industrial production in 2013, when growth was 8%. According to him, the data in the first two months of this year show a continuation of this tendency.

“Now we are talking about the de-industrialization of Romania, and really, if we compared nowadays to 1990, when the industry was involved in gross domestic product with 40%,  then to 25%, but now we are back to 31%. I urge you to pay attention to industrial orders in February, showing an increase of 20% compared to the same month last year, which means that this year we can expect good growth in industrial production, “said Mugur Isarescu.

Governor of the National Bank of Romania has also stated in the afore mentioned symposium that 2014 is an important year in terms of prices, because Romania entered the European club.

“During the summer of 2014, the criterion for inflation and interest rates related to access to the euro zone will be fulfilled. This does not mean that we are entering into the euro zone, but the message is that we are in a European club”, said Isarescu, quoted by Romanian newspaper the” Ziarul Financiar “.

Source; Serbia Energy See Desk

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