Opening with pomp: two companies prepare to extract some amounts of gas from the Black Sea, but it is not enough – Energy

That is to say, now the works begin to bring the gases into the shallow deposits, but those of deep depth, of the perimeter of Neptune, where much greater quantities would be found, still have to wait. Investment decisions in the Black Sea have been significantly delayed due to unfavorable legislation for licensed companies. OMV Petrom, which owns a license for the Neptune perimeter, along with Exxon’s Americans, postpones the investment decision from year to year. The companies are calling for the Offshore Law to be amended, but political will is lacking The current government says it wants change through parliament, but only when there is political consensus.

But this does not mean that the gases from the Midia perimeter are not important, especially since they could cover, on entry into production, around 10% of Romania’s gas needs. But this pompously organized inauguration is not enough, in the middle of an election campaign, given the enormous investment potential in the Black Sea. And this in the conditions in which Romania recently acquired a rival in the Black Sea.

Recall that Turkey announced the discovery of the largest natural gas field “in its history.” “Turkey has made the largest natural gas discovery in its history in the Black Sea,” Erdogan said in a speech in Istanbul, adding that reserves are estimated at 320 billion cubic meters. For comparison, the deposits in the Romanian Black Sea area are estimated at 200 billion cubic meters. The area is near the perimeter of Neptune, where the Black Sea’s largest gas field in eight decades was discovered eight years ago.

“Romania should not import any cubic meter of gas at this time”

But the postponement of the amendment to the Offsore law did not prevent officials present at the event from claiming that the exploitation of gas from the Black Sea is a priority. “For us, for the Romanian Government, the exploitation of natural gas in the Black Sea has been, is and will be a priority. Today, here, we are witnessing an important step in this project, a US investment of more than 500 million euros, through which Romanian gas from the Black Sea will finally reach the homes of Romanians It is an ambitious program that the government has taken, to bring Romanian gas to the homes of Romanians, to have new sources of gas available. Today, as the installation works begin. “We will have the certainty that next year the first molecule of gas will flow through these pipelines. I want this strategic partnership with the United States to continue, this economic side, “said Virgil Popescu, Minister of the Economy, according to Agerpres.

Mark Beacom, CEO of Black Sea Oil & Gas, did not miss an opportunity to mention all the hostile investment legislation. “In order for Black Sea projects to take off, it is absolutely necessary that all the anti-investment legislation in the Black Sea oil fields, which was adopted in 2018, disappear completely. And those rules that currently allow companies and producers foreigners “Bringing natural resources to Romania to the detriment of local companies and producers must disappear. Romania must ensure that it can produce its own gas without problems and that it stops importing, “Mark Beacom was quoted as saying by Agerpres.

He noted that the law on additional taxes is unsustainable and will kill the industry, noting that he told the company’s shareholders not to worry and go ahead, because the law will be changed until production starts. Beacom specified that the competition in this field is fierce, but “it is up to Romania whether it will win the competition for which it has all the necessary assets and qualities, or lose it.”

Beacom warned that we must not forget that Romania is not the only country open to the Black Sea. “She has other neighbors who are desperately trying to get to where she is now. I have seen and heard the President of Turkey speak about a significant discovery in the Black Sea. And what is absolutely extraordinary is how proud the President of Turkey is when speaks on behalf of the Turkish state about this gas discovery and how safe he is when he talks about Turkey’s future opportunities (…) Romania must be proud of the resources it has and must work to be able to value them, they need to be sure that They can put these resources into production and they can capitalize on their potential to real value and they can do similar projects, “said Beacom.

He recalled that the project represents only a small part of the economic potential of the Romanian part of the Black Sea and that Romania should not import any cubic meter of gas at any time.

“I hope that this project is the starting point for Romania to start reaping absolutely all the benefits that it can get from the farms in the Black Sea. (…) I think nobody wants, looking at Romania, imports from other producers around from the Black Sea, since it has such a high potential. In fact, Romania should not import any cubic meter of gas at the moment. All this money that is paid for imports is I’m going abroad, “said BSOG, a company that is part of Carlyle International Energy Partners.

What does the gas mean in the perimeter of Midia?

The Midia – MGD natural gas development project includes a gas treatment plant – 2 km from the coast, 4.3 km of land pipelines, 121 km of offshore pipelines, ANA production platform, with 4 wells (70 water depth), 18 km of connecting pipes between the ANA and Doina deposits, Doina well (85 m water depth). The 5 production wells will be drilled by GSP Uranus. There are about 10 billion cubic meters of resources to be put into production at a volume of about one billion cubic meters per year.

The president of Grup Servicii Petroliere, Gabriel Comănescu, affirms that the first gases from the Black Sea fields that are the object of the Midia Offshore Natural Gas Development Project in front of the Black Sea of ​​the Black Sea Oil & Gaz, could enter the national transportation system somewhere in the middle of next year. . Comanescu says that the installation of the underground pipe began a few days ago, that the distance in contact with the water is 150 meters, and in total it is 1.5 kilometers. “The subsea pipeline goes under the beach. After digging this well, the pipeline will pass through the well in a few days (…) In November, we estimate that the production platform will be installed, following the Urano platform towards the end of December “With God’s help, and hopefully the weather will help us, by the middle of next year, the first gas will enter the national transportation system,” Comanescu said, according to Agerpres.

BSOG has entered into a gas sale agreement with a Romanian subsidiary of ENGIE for all natural gas production, minus the share that producers are obliged to sell in the centralized market, and a natural gas transmission contract with Transgaz for a 15-year period.