Romania’s president signs offshore law
Romania’s president Klaus Iohannis signed on Monday, November 12, the offshore law, which sets the regulatory and fiscal framework for offshore gas exploitations in the Black Sea.
The law received the final vote from the Chamber of Deputies on October 24, after several months of intense debate on its provisions.
The law was initially voted this summer but president Klaus Iohannis asked the Parliament to review it arguing that its provisions endangered the investments in the Black Sea.
The ruling party, the Social Democratic Party (PSD), managed to keep the tax levels imposed by its leader Liviu Dragnea and the obligation for investors to sell half of the gas produced on the Romanian market but the opposition managed to add an amendment for keeping the taxation for offshore operations unchanged throughout the whole period of the concession agreements.
The main investors in Black Sea gas perimeters said they don’t have enough time to decide this year if they will move on with the investments or not due to the delays in adopting the law.
U.S. group ExxonMobil and OMV Petrom and U.S. fund Carlyle run two of the biggest gas exploration operations in the Romanian Black Sea.