BSOG and its partners in Black Sea offshore project fined

Black Sea Oil and Gas (BSOG), PetroVentures Resources and Gas Plus Dacia each received a fine of RON 3.4 mln last year, according to the market regulator ANRE report published on January 26, quoted by Economica.net.

The three companies began production at Romania’s first new offshore production site last year at a critical moment for the country’s energy security, therefore, the fine came as a surprise.

The ANRE report didn’t come with details about the reason for the fine, but according to sources close to the situation, it was probably given because the three companies failed to deliver certain quantities of gas at the capped price, as required by law and ANRE.

Under temporary regulations, the gas producers in Romania are required to provide at regulated prices certain amounts set by ANRE. But BSOG, which began production in Romania’s offshore area in mid-2022, couldn’t comply with the requirements as it had previously contracted its entire production to Engie Romania for demonstrating future cash flows and thus securing bank loans. BSOG was also unable to deliver the extra gas it would have produced because of insufficient transport infrastructure or regulations related to the infrastructure.

The reason for which the fines were given remains unclear.

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