US investor to deliver first offshore gas from Romania’s Black Sea in 2021

Black Sea Oil and Gas (BSOG), the only company that has already made the final investment decision to exploit an offshore gas perimeter in Romania’s Black Sea, maintains its goal of bringing the first gas to shore in 2021 despite the operations lagging slightly behind schedule.

“We are a little late, the project is at 25% [versus 50% planned], but we will start the extraction in 2021,” Mark Beacom, CEO of Black Sea Oil and Gas, said at ZF Power Summit, local Economica.netreported.

He explained that BSOG will spend another USD 300 million to start commercial gas extraction, after spending USD 200 million.

Beacom once again drew the authorities' attention that the legislation on gas exploitation should be amended before BSOG starts delivering gas from the offshore perimeter.

"We insist, it is vital that by the time we start producing gas, things must be resolved, I hope common sense will prevail, I would not want to be perceived as a liar [and pull out of the project]," said Beacom.

The changes mentioned by Beacom target the reduction of the additional taxes set by the Offshore Law, higher deductions for investments and the possibility of selling the gas freely on the market.

The Midia perimeter developed by the American investment fund Carlyle, through BSOG, in the Romanian Black Sea shallow water area, has potential gas reserves of between 10 and 20 billion cubic meters.

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