BSOG has officially announced the start of the gas extraction from the Romanian Black Sea perimeter in Q1 2021

By Edwig Ban
Black Sea Oil and Gas, the only company to make the final investment decision to exploit the Black Sea reserves, maintains its goal of bringing the first gases to shore in 2021.
The first gas extraction from the Romanian perimeter of the Black Sea Midia could be done in the first quarter of next year, said Mark Beacom, CEO of Black Sea Oil & Gas in Bucharest on Tuesday.
“The total investment in the project is $ 400 million. So far, we have spent $ 200 million on exploitation and another $ 200 million to extract the first gas molecules. We hope to recover the delays. Probably in the first quarters of 2021 we will see the first extractions, “said Mark Beacom.
“We chose to invest a year ago and we went ahead with the project. We build a platform on the site and ordered equipment to connect the platform. We are at 15% of the works compared to 25% as we should have been. We expect the project to be completed by next year, ”said Mark Beacom.
In early February, Black Sea Oil & Gas announced, in a statement made by S&P Global Platts, that it will continue the Midia project regardless of the decision that the authorities will take regarding the provisions of the offshore law and GEO 114.
The company announced that, along with its concession partners, Petro Ventures Resources and Gas Plus International, it approved the final investment decision in the Midia Natural Gas Development Project (MGD Project), worth $ 400 million.
“The final investment decision was made in good faith, assuming that BSOG and its concession partners will succeed in restoring all their rights, in order to eliminate any additional taxes and contributions recently introduced, as well as any restrictions on free movement. of gas in a fully liberalized market, according to European legislation. These are needed both to make the MGD Project a viable investment and to encourage future Black Sea natural gas development projects, ”BSOG representatives said at the time.
The estimated production capacity will be 1 billion cubic meters of gas per year, equivalent to 10% of Romania’s gas consumption, according to company estimates. The treated gases will be delivered to the National Transport System operated by SNTGN Transgaz SA (Transgaz) at the gas measuring station within the STG.
Recently, BSOG concluded a gas sale agreement with a Romanian subsidiary of Engie for the entire production of natural gas, minus the quota that producers are obliged to sell on the centralized market. Also, BSOG has signed with Transgaz a natural gas transport contract for a period of 15 years.