French banks finance BSOG’s Midia offshore project in Romania

French groups Societe Generale and Credit Agricole have financed the operations carried out by Black Sea Oil & Gas (BSOG) in the Midia gas perimeter in the Romanian Black Sea section.

BSOG, which is indirectly controlled by the American asset management group Carlyle with the European Bank for Reconstruction and Development (EBRD) holding a minority stake of about 10%, expects to start production in the second half of 2021.

Societe Generale's London division together with its Romanian subsidiary BRD, Credit Agricole's investment banking arm, and the EBRD, are among the original arrangers and lenders of a revolving multiple credit facility contract concluded with BSOG at the end of last year, according to an official document consulted by Profit.ro.

The source reveals that the facility's value is EUR 200 million and is intended, among others, to finance the costs of drilling, development, construction, testing, production, operation, management, and maintenance of the Ana and Doina gas wells in the Midia perimeter.

The perimeter is leased by Black Sea Oil & Gas, which owns 65% of the rights and runs the operations, Petro Ventures Resources (20%), and Gas Plus (15%).

(Photo: Pixabay)