Carlyle-controlled BSOG ready to hike offshore gas output in Romania before winter

Black Sea Oil and Gas (BSOG), an oil company controlled by Carlyle investment fund that delivered since last year gas from its Black Sea perimeter at a rate of 1 billion cubic meters per year, is ready to increase its output by 25% this winter, CEO Mark Beacom said at a conference, Profit.ro reported.

But “the debate on where this gas must go must reach an end,” Beacom added – a hint to the deadlock prompted by regulations enacted by Romania with an impact on BSOG’s prior contracts.

BSOG sealed in 2018 a long-term contract with the natural gas supply and distribution group Engie before Romania imposed in 2022 (by OUG 27/2022) an obligation to all natural gas producers to sell part of their output on the regulated market. Individual quotas to be sold on the regulated market are set by the market regulator ANRE but are not public.

BSOG was fined earlier this year, and although this was not officially confirmed, the fine was most likely prompted by failure to meet the new regulatory requirements.

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