Page 11 - TURKRptJun22

bne June 2022 Companies & Markets I 11
RON819mn (€162mn) in Q1, 3.5 times more compared to the same period last year.
Total revenues rose by 165 y/y to RON1.86bn, largely due to higher electricity prices in the last year, as the nuclear power plant’s output was roughly flat.
The revenues were 26% higher than the target. The gross electricity production of the two operational units of the
Romania hopes to unlock Black Sea natural gas projects with revised Offshore Law
Iulian Ernst in Bucharest
The Romanian Chamber of Deputies as the decision- making body endorsed the amendments to the Offshore Law on May 18.
The amendments have been expected for years to unlock several investment projects in the country’s Black Sea perimeters that are at various development stages but all of them blocked.
If they go ahead, the projects may bring 1bn cubic metres (bcm) of gas per year in the short term and another 6 bcm per year starting with 2027.
"With this law, production can basically begin in the Black Sea," Energy Minister Virgil Popescu told lawmakers.
"It brings stability, predictability, and a friendly fiscal system," he added.
The bill was endorsed with 248 votes against 34 and was submitted for promulgation to President Klaus Iohannis. None of the amendments proposed by the opposition parties, reformist USR and radical AUR, were accepted. Eventually, AUR was the sole party that voted against the bill.
It remains to be seen whether the new legislation, which lowers the tax and removes export restrictions on gas, is enough to convince investors to go ahead with their plans.
Cernavoda nuclear power plant was 3.02 TWh in Q1 this year.
The average price of the electricity sold under bilateral contracts (81% of the total, in Q1, 2022) rose by 127.5%
y/y to RON563 (€115)per MWh while the average price of electricity sold on the spot market (19% of total) soared four times y/y to RON1,068 (over €200) per MWh, in the first quarter of this year.
Out of the projects, the largest one is operated by OMV Petrom in partnership with Romgaz (ExxonMobil previously), while the most advanced is operated by Black Sea Oil and Gas (BSOG, owned by Carlyle investment fund), which expects production in the second half of this year
if everything goes well, while Lukoil is also operating a perimeter in Romania’s offshore area.
Lukoil, which operates the block in partnership with Romania’s Romgaz, announced in 2020 its intention to exit from the project.
In total, the offshore blocks would hold potential reserves of about 200 bcm of gas, Romania's consumption for about 19 years, according to estimates from the National Agency for Mineral Resources (ANRM).
“In total, the offshore blocks would hold potential reserves of about 200 bcm of gas, Romania's consumption for about 19 years”
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