Romania’s ruling coalition wrapped up the draft Offshore Law and sent it to the Parliament for ratification.
The amended law is expected to convince investor in the Black Sea offshore perimeters to go ahead with their investment projects (OMV Petrom) or to give up plans to seek international meditation (BSOG).
One of the key provisions challenged by the investors, regarding limitations about the market where the output should be sold is eliminated from the amended bill, but the Government is still entitled to impose temporary restrictions under extraordinary circumstances.
According to the draft, the supplementary taxation thresholds remain the same, but the calculation basis is changed so that, in the end, the taxes paid by the companies would be lower.
The supplementary tax is levied on the revenues generated from selling the natural gas above threshold prices (15 % of the revenues generated from selling the gas at a price higher than 17.2 euros/MWh but lower than 20 euros/MWh, for in- stance). Companies will also be able to deduct up to 40 % of the supplementary tax amount, com- pared to 30 % under the existing regulation.
In the past few years, several Romanian Governments promised to amend the Offshore Law, which currently proscribes high taxes on offshore gas producers, thus prolonging the start of the Black Sea gas exploitation.
OMV Petrom, the operator of Neptun Deep license, said that the final investments decision will be made in 2023 and will be dependent on promised amendments to the Offshore Law. Black Sea Oil & Gas (BSOG) said that gas production could start in second quarter of 2022 if the legislation is amended in time.
