BSOG's Romanian gas project set for June debut: press
Black Sea Oil & Gas will produce the first gas from its offshore Romanian development Midia on June 30, Romania-Insider reported May 28.
The shallow water project comprises two natural gas reservoirs, Ana and Doina, which together contain around 300bn ft3 in P50 gas reserves.
With a maximum production capacity of around 1bn m3/yr, the Midia project is expected to cover around 10% of Romania's national gas demand. Gas extraction will be managed from an oil rig installation at Ana, situated 120 km from the Romanian coastline.
Field tests at the deposit were carried out over the last week, unnamed sources told Romania-Insider. BSOG will now seek final approvals from national regulators to start gas production.
Midia is among several offshore gas discoveries in the Romanian Black Sea made in the last decade and a half. Romanian offshore gas resources of around 200bn m3 are well positioned to satisfy European energy requirements, especially given the planned closure of Groningen gas field in the Netherlands next year, which will leave Denmark as the main provider of natural gas within EU borders.
Operators in Romania have complained of a poor regulatory environment. Earlier this year, BSOG said it would seek international mediation to overturn some of Bucharest's legal requirements.
Romania is in the process of updating its hydrocarbon industry legal framework, with legislators currently debating a new version of the bill. Bucharest has proposed the current offshore oil and gas tax rate of 23% should be reduced in the new framework. The existing tax rate is four times higher than the European average, according to a study by consultancy PwC Romania.
The new law would establish a progressive tax indexed to gas sales prices that would remain consistent for the duration of gas projects, from first gas to decommissioning, according to Reuters.
BSOG CEO Mark Beacom has previously urged the government to stop adding detrimental legal measures to allow Romania to realise its full gas production potential.