BSOG and its partners seek to amend Romania's "solidarity contribution" in court

Black Sea Oil & Gas (BSOG) and its partners in the Midia offshore natural gas perimeter in the Black Sea, where gas production started last summer, have challenged in court the 60% solidarity contribution enacted by the Government on December 31 last year, Profit.ro reported.

The company seeks a "proportional and adequate application of the solidarity contribution" rather than avoiding the contribution.

"BSOG and its partners have taken the necessary legal steps to protect their legal rights and to ensure that ordinance no. 186/2022 is in line with the law, with the principles proposed in the EU Regulation on the solidarity contribution, and that it encourages the growth of gas production at a time when the country needs it most," said BSOG CEO Mark Beacom.

The contribution is levied on the "excessive" profits of companies in the oil, gas, coal and refining industries, in line with the EU Regulation from October. However, BSOG argues that the contribution would be levied on its entire 2022 profit, as the company had not operated in the four years before.

The contribution is levied on the surplus profit above 120% of the past four year's average profit.

(Photo source: Blackseaog.com)