You know everything about the Black Sea region already.
There are no new business opportunities and no future for oil & gas production. Government is tightening the industry with new regulations, big international oil & gas companies are leaving, and there is no change in any foreseeable future.
BUT WHAT IF THE CHANGE IS TAKING PLACE?
There is a summary of recent market trends & developments.
Offshore Law is set to be amended once again… now in favor of oil & gas producers though. Energy Ministry has launched to public debate a draft law to radically amend the Offshore Law, which includes:
Removing additional taxation of revenues for the selling prices where investors don’t generate superprofits (ranging from RON 45.71/MWh to RON 100/MWh).
The reference price used in determining the calculation basis of the additional revenue tax is also removed.
The maximum level for deducting investments in the upstream sector to set the additional offshore tax is increased from 30% to 60%.
The trading obligations on the centralized markets in Romania on the medium and long term are also abolished.
Oil & gas exploration and production tenders are on the rise, giving a chance to new offshore and onshore companies enter the market:
In July 2019, (NAMR) announced the 11th concession round in Romania. 22 blocks are located onshore across all regions of Romania, while 6 blocks are offered offshore on the Black Sea.
Also in July 2019, Bulgaria’s government announced the opening of a tender for five-year oil and gas exploration permit for Block 1-26 Tervel, in the country’s sector of the Black Sea.
In 2019, Ukraine ran massive licensing rounds for 35 onshore and 1 offshore block. See the results
Georgia expressed interest in attracting foreign investors with an open international tender for 6 onshore areas announced earlier in 2019.
Despite the regulatory pressure, some of the largest gas exploration & production projects in the region are going ahead:
The Midia project, the first new offshore gas development project in the Romanian Black Sea to be built after 1989 is going full steam ahead. The most recent news – Transgaz have signed an agreement to build a 24.37 km pipeline that will feed gas from Black Sea wells