Black Sea Oil and Gas (BSOG) has notified the Romanian state of its intention to initiate an international arbitration process at the Paris Court.
The company said that it did its part of the job and is ready to start natural gas production at a critical moment, but it expects the Romanian state to keep its promise regarding the amendments to the Offshore Law as well.
Romania’s ruling coalition claims that it will come up with a revised Offshore Law by the end of this week. But it wouldn’t be the first of broken promises, since amending the Offshore Law has already been delayed on several occasions.
In February 2019, BSOG announced the final investment decision for the Midia Natural Gas Development Project in Romania’s part of the Black Sea area. However, three years from that decision, the Law has not been amended yet.
BSOG CEO Mark Beacom said last month that BSOG is ready to start natural gas production in the second quarter of the year, but only if the Offshore Law is amended.
Even if settled by the end of this week, the new Offshore Law will not be the outcome of open debates and transparent negotiations. It will most likely remain subject to political accusations, speculations and contestations. What BSOG seeks is, on the one hand, a fair implementation of the EU regulations but, on the other hand, the cancellation of additional taxes that affect any investments in the sector.