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Iulian Ernst
Senior Editor

Iulian studied physics at the University of Bucharest, and he sees himself as a physicist in the broadest sense of the word. He also studied economics at Charles University in Prague and Central European University in Budapest, after a master’s program in business administration at Bucharest Academy of Economic Studies. Since recently, he’s been exploring coding and data analysis for business and economics. As a freelancer, he worked for nearly two decades as an analyst for ISI Emerging Markets, Euromonitor International, Business New Europe, but also as a consultant for OMV Petrom and UkrAgroConsult. Iulian was part of the founding team of Ziarul Financiar. At Romania Insider, which he joined in 2018, he is reviewing the latest economic developments for the premium bulletins and newsletters. He would gladly discuss topics such as macroeconomics, emerging markets, Prague, energy sector including renewable, Led Zeppelin, financial services, as well as tech start-ups and innovative technologies. Email him at [email protected] 

 

Romanian PM gives ambiguous hint on the future of the Offshore Law

Romanian prime minister Ludovic Orban, asked about the Offshore Law - seen by foreign oil companies as an obstacle for their investments in Romania's Black Sea perimeters, avoided assuring that the bill would be amended according to the investors' demands.

___STEADY_PAYWALL___

"We have an extraction capacity that exceeds local consumption. The only periods when consumption can exceed production are in winter, but we have solutions even for such episodes. We have underground deposits, but not enough was invested in increasing the extraction capacity [from storage] during winter. This is why we need imports," PM Orban said.

Economica.net interpreted the message as a bargaining strategy.

The Government would prefer local company Romgaz and OMV Petrom (in partnership with Polish PGNiG) to take over the stake US group ExxonMobil holds in the Neptun Deep offshore gas perimeter, which is on sale.

Separately, Black Sea Oil and Gas, a company controlled by US fund Carlyle, has warned that it could ask for international arbitration unless Romania amended the Offshore Law by the time it starts production, toward the end of 2021.

The main issue is related to local producers being compelled to sell 40% of their output transparently, on the national markets.

The ambiguous answer given by PM Orban when asked about the Offshore Law comes at a time when Romania's subdued consumption resulted in the first gas exports to Hungary since the autumn of 2018 - without any offshore capacity in operation.

Meanwhile, the perspective of exports to Moldova remains uncertain, despite Transgaz inaugurating the pipeline to the industrialized area around Chisinau. No significant project in the petrochemical industry is being developed in Romania at this time. This might be another reason why the Government is not in a hurry to unlock the offshore gas projects. 

(Photo: Pixabay)

[email protected]

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Profile picture for user iuliane
Iulian Ernst
Senior Editor

Iulian studied physics at the University of Bucharest, and he sees himself as a physicist in the broadest sense of the word. He also studied economics at Charles University in Prague and Central European University in Budapest, after a master’s program in business administration at Bucharest Academy of Economic Studies. Since recently, he’s been exploring coding and data analysis for business and economics. As a freelancer, he worked for nearly two decades as an analyst for ISI Emerging Markets, Euromonitor International, Business New Europe, but also as a consultant for OMV Petrom and UkrAgroConsult. Iulian was part of the founding team of Ziarul Financiar. At Romania Insider, which he joined in 2018, he is reviewing the latest economic developments for the premium bulletins and newsletters. He would gladly discuss topics such as macroeconomics, emerging markets, Prague, energy sector including renewable, Led Zeppelin, financial services, as well as tech start-ups and innovative technologies. Email him at [email protected] 

 

Romanian PM gives ambiguous hint on the future of the Offshore Law

Romanian prime minister Ludovic Orban, asked about the Offshore Law - seen by foreign oil companies as an obstacle for their investments in Romania's Black Sea perimeters, avoided assuring that the bill would be amended according to the investors' demands.

___STEADY_PAYWALL___

"We have an extraction capacity that exceeds local consumption. The only periods when consumption can exceed production are in winter, but we have solutions even for such episodes. We have underground deposits, but not enough was invested in increasing the extraction capacity [from storage] during winter. This is why we need imports," PM Orban said.

Economica.net interpreted the message as a bargaining strategy.

The Government would prefer local company Romgaz and OMV Petrom (in partnership with Polish PGNiG) to take over the stake US group ExxonMobil holds in the Neptun Deep offshore gas perimeter, which is on sale.

Separately, Black Sea Oil and Gas, a company controlled by US fund Carlyle, has warned that it could ask for international arbitration unless Romania amended the Offshore Law by the time it starts production, toward the end of 2021.

The main issue is related to local producers being compelled to sell 40% of their output transparently, on the national markets.

The ambiguous answer given by PM Orban when asked about the Offshore Law comes at a time when Romania's subdued consumption resulted in the first gas exports to Hungary since the autumn of 2018 - without any offshore capacity in operation.

Meanwhile, the perspective of exports to Moldova remains uncertain, despite Transgaz inaugurating the pipeline to the industrialized area around Chisinau. No significant project in the petrochemical industry is being developed in Romania at this time. This might be another reason why the Government is not in a hurry to unlock the offshore gas projects. 

(Photo: Pixabay)

[email protected]

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