October 2019   |   Black Sea region

Iulian Robert Tudorache, Secretary of State, will speak on the newly implemented legislative changes

Posted by GBC on 17-07-2018

Iulian Robert Tudorache, Secretary of State, Ministry of Energy of Romania will open the conference and deliver a presentation discussing the effects of the newly implemented legislative changes, referred to as “Offshore law”, in association with Harald Kraft, President of ROPEPCA. With over 38 years of experience in the petroleum industry, upstream, midstream and downstream and a PhD in Petroleum Engineering from the University of Clausthal-Zellerfeld, Germany, Mr. Kraft will provide an expert overview of the regulatory framework for upstream operations in Romania.

After the 2014 oil price crash, many exploration and extraction projects in the Black Sea were put on hold. To revive the industry following a recent rebound of oil price, Romanian parliament passed a controversial legislation regarding offshore projects.

An increase in tax as well as capping the amount of gas to be exported to the European market to 50% (50% to remain for domestic consumption) can be a double-edged sword. Whilst reducing energy dependence on external providers by reserving large amounts of gas for domestic consumption is a step towards energy independence, it is also a change that foreign investors may not appreciate due to an increase in costs.

With global oil prices rising, investors are prepared to take on more risks as the market stabilises. Combined with a technological advance in high-tier seismic surveying and deepwater drilling Black Sea hydrocarbon extraction becomes ever more appealing. European Union’s energy diversification obligations spark further interest in the region in a race to reduce energy dependence on Russian energy behemoth – Gazprom.

A stark example of Black Sea potential is the Neptune Deep project operated by a collaboration of ExxonMobil and OMV Petrom. With seismic data indicating large reserves of hydrocarbons, the project is set on a path of success. Norway based quality assurance and risk management company DNV GL will do a joint presentation with representatives from OMV Petrom telling their experiences of operating in the Black Sea.

To meet representatives of regulatory authorities and take an active part in discussion with operators, have a look at agenda and registration options.