Page 16 - EurOil Week 14 2022

EurOil PROJECTS & COMPANIES EurOil

BSOG expects Midia startup in Q2

ROMANIA BLACK Sea Oil & Gas (BSOG) expects to start government extended a support scheme for
flowing gas from the Midia project in the Roma- rising energy bills by another year, with one of
The company continues nian Black Sea in the second quarter, later than the provisions forcing gas producers to sell part
to complain about previously planned, its CEO told Reuters on of their output at capped prices in return for tax
the poor investment March 30. cuts and exemptions. Beacom said these meas-
climate. Owned by private equity firm Carlyle Group, ures would further undermine investment.
BSOG aims to extract 10bn cubic metres of “There is significant underinvestment in
gas from Mida over the project’s life. But it has bringing already discovered resources that are
repeatedly delayed the field’s launch, urging the sitting at Romania’s doorstep … and further dis-
government to amend regulations that develop- couraging any producer, including BSOG, from
ers have said are stifling offshore gas develop- looking for more resources through exploration.”
ment. Midia had previously been due to come PwC Romania estimates that the country has
on stream in November last year. the highest effective tax rate on offshore gas pro-
“With the constructive co-operation of all duction of any European country, at 23%. This
the stakeholders … first gas will be achieved in is more than four times higher than the average,
the second quarter of 2022,” BSOG CEO Mark according to the consultancy.
Beacom told Reuters in an interview. “Our view OMV Petrom has similarly complained
is that continuously undermining domestic pro- repeatedly about the poor investment climate in
ducers by constantly introducing yet again new Romania. It recently said it did not expect to take
detrimental measures is the reason that Roma- a final investment decision (FID) on the 84 bcm
nia has significantly failed to reach its significant Neptun Deep project. In light of these delays and
production capacity and will only prolong this as part of its broader strategy, US major Exxon-
issue.” Mobil is negotiating the sale of its stake in the
Romania introduced a controversial offshore project to local state-owned Romgaz.
law in late 2018 that has led to several offshore Romania had aspirations to become a net
gas projects being shelved, including the Nep- exporter of gas following the discovery of large
tun Deep scheme led by Austro-Romanian firm offshore resources. But amid these continued
OMV Petrom. The law imposed additional taxes, delays, the country continues to rely on Russian
and restrictions on where producers could sell gas imports to supplement domestic supply. Like
their gas and at what price. many other EU states, Romania is scrambling for
Romania’s current coalition government ways of phasing out Russian gas use in the wake
has repeatedly vowed to change the legislation of Moscow’s invasion of Ukraine, while also
within the first half of this year, but it is yet to seeking to ensure energy bills do not grow too
draft any amendments. And in March, the steeply. ™

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