The CEO of an offshore natural gas project stated on Tuesday that Romania is hindering further offshore gas exploration in the Black Sea by halting the auction of new blocks. As a member of the EU and NATO, Romania is estimated to hold 200 billion cubic meters of natural gas in the Black Sea, which could help diversify energy supplies as the region gradually reduces its reliance on Russian gas. There is also potential for discovering additional reserves.
However, the last time Romania’s National Agency for Mineral Resources tendered offshore exploration blocks was in 2010. Plans for a new round of auctions were suspended around five years ago due to overlapping legal provisions.
Despite the complications that Russia’s invasion of Ukraine four years ago introduced to energy and trade plans in the Black Sea, investor interest in natural gas remains strong.
Black Sea Oil & Gas, controlled by private equity firm Carlyle Group, launched Romania’s first offshore Black Sea development project in three decades in 2022. After winning an exploration tender in 2010, the company now accounts for about 10% of Romania’s annual gas consumption.
The company is also pursuing renewable energy projects.
“We are very keen to continue exploration and production in the Black Sea because it is an excellent location,” said Mark Beacom, CEO of Black Sea Oil & Gas, during a conference hosted by The Economist. “There are significant natural gas opportunities here, but you cannot obtain concessions. This essentially amounts to a suspension of approvals. We are a ready investor with infrastructure and see the opportunities, but we are being blocked from securing new concessions.”
The National Agency for Mineral Resources did not immediately respond to a request for comment.
Speaking earlier on Tuesday at the same conference, Energy Minister Bogdan Ivan expressed his desire to attract U.S. companies to participate in future Black Sea gas projects.
Romania’s flagship offshore gas project is Neptun Deep, jointly owned by OMV Petrom, controlled by Austrian oil and gas group OMV, and state-owned natural gas producer Romgaz. The project is expected to double Romania’s annual gas production starting in 2027, turning the country into a net exporter.
Earlier this month, industry sources informed media that Ukraine’s state-owned gas company, which had discovered “significant” offshore gas reserves in the Black Sea prior to Russia’s invasion, is in talks with OMV Petrom regarding the development of the gas field.
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