Canadian Sterling Resources plans to invest USD 500 mln in Black Sea blocks in Romania

Canadian Sterling Resources needs to invest some USD 500 million in its Midia and Pelican blocks in the Romanian shelf of the Black Sea, and the money can be obtained without any problems, Sterling Romania's general manager Mark Beacom said on Thursday. The Black Sea has huge potential regarding hydrocarbon reserves, but these resources cannot be extracted because of multiple setbacks that can be removed through “a leadership vision” by the government, Beacom told an energy seminar in Bucharest. According to the company official, Sterling Resources will extract three million cubic meters of gas per day, from the two perimeters, in 2014. By comparison, daily consumption of gas on a national level, in winter, reaches some 60 million cubic meters. Sterling Resources holds oil assets in Great Britain, Romania and France. Sterling Resources Ltd. has filed a notice of dispute with the Romanian state, based on the agreement between Romania and Canada for the promotion and reciprocal protection of investments, according to a company announcement. The notice was filed on June 20, “as a result of deliberate and discriminatory actions taken against the company’s investments on its Midia and Pelican Blocks in the Black Sea”. Sterling Resources says that “an intense media campaign was initiated by Romanian public officials in the Romanian press, including prejudicial and unfounded speculation regarding the legality of the concession agreement”, and that there were also “unfair and biased enquiries conducted by the Investigation Commission of the House of Deputies and by other Romanian State bodies”. The next action that may be used is initiating the international arbitration proceedings under the agreement between Romania and Canada, according to the company. “If Sterling is unable to obtain satisfactory resolution on all the issues within this period, the company can then submit the matter to arbitration, if it so desires. Under the arbitration process, Sterling would claim monetary damages that reflect the entire and significant ultimate value of its offshore assets”, according to the company’s announcement. Mediafax, Romania-Insider.com