Romanian Senate adopts amended offshore law

The Romanian Senate adopted on Monday, September 24, the offshore law, which establishes the rules for companies that extract natural gas from Romania’s Black Sea section. The bill has several amendments compared to the initial form the parliament adopted in July, local Mediafax reported. President Klaus Iohannis asked the Parliament to review the law. The most important changes introduced in the law provide that the taxes and royalties companies have to pay won’t change during the exploitation period. Companies that have invested heavily and will continue to invest in offshore operations will be able to deduct their investments from the taxes owed to the state. The amendments, which play in favor of the investors carrying offshore operations in the Black Sea, were proposed by senators of the ruling Social Democratic Party (PSD). However, PSD leader Liviu Dragnea said on Monday that the main provisions he introduced in the law, namely an additional tax based on the gas price and the producers’ obligation to sell half of the gas extracted from the Black Sea in Romania, won’t change. Romania’s ruling party concedes to big investors and changes offshore law editor@romania-insider.com