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    Partners Take FID on Romanian Block


But there are some strings attached.

by: William Powell

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Natural Gas & LNG News, Europe, Corporate, Exploration & Production, Political, Ministries, Tax Legislation, Regulation, News By Country, EU, Romania

Partners Take FID on Romanian Block

Privately-owned Black Sea Oil & Gas (BSOG) and its partners have taken the final investment decision (FID) to proceed with the $400mn Midia gas project in the Black Sea, it said February 7.

However it said the decision was on the assumption that the owners will be relieved of all the new supplemental taxes and fees as well as any restrictions on the free movement of gas on a fully liberalised market in accordance with EU directives.

Otherwise, it said, the project would not be a viable investment and further gas developments in the Black Sea would not happen. Its partners are private Petro Ventures Resources and Italian Gas Plus.

The project consists of one subsea production well at Doina field connected by an 18-km pipeline to the four platform wells at the Ana field. A 126-km gas pipeline will link that to the shore, where there will be a new onshore gas treatment plant. The plant will be able to process 1bn /yr, a tenth of Romania’s gas demand. The gas will be delivered to the grid from the processing plant.

BSOG has secured a long-term gas sales agreement with a Romanian subsidiary of French Engie and the contracted volumes refer to all Midias production, less the quantities that the producers must sell on the local market. BSOG has also secured a 15-yr gas transmission contract with Transgaz.

The entire project infrastructure, including all offshore and onshore facilities, has been contracted to be built, installed and commissioned under an EPCIC contract with GSP Offshore, with a contracted delivery date Q1 2021. The development drilling of the five production wells will also be performed by GSP for which GSP Uranus jack-up rig will deployed.

BSOG expects to complete the detailed engineering this year and to have started building the Ana wellhead platform at the shipyard in Agigea, begun the civil works at the GTP site in Corbu and to have bought some of the long lead company items.

BSOG CEO Mark Beacom called the project a gamechanger for Romania's energy industry, with many firsts having been successfully achieved. "Together with our joint venture partners we very much appreciate all the help we have received along the way from the many Romanian institutions, contractors, Transgaz and our community of Corbu which were vital for reaching this critical milestone of FID."