Senate passes Offshore Law
The Romanian senators have voted for the modification of the offshore law.
Mihai Pelin, 12.05.2022, 14:00
The plenum of the Romanian Senate has adopted amendments to the offshore law. Delayed for a long time, the law regulates the operations regarding the development and exploitation of oil deposits in the offshore perimeters, off the Romanian Black Sea Coast in the Black Sea, as well as of deep oil deposits in onshore perimeters. The bill amending the offshore law establishes the distribution of 40% of the profit obtained to the investors and 60% to the Romanian state, which has the right of pre-emption to gas acquisition. During the meeting, the Energy Minister, Virgil Popescu, highlighted that this law would ensure Romania’s gas security in case of an energy crisis, pointing out that Romania could also become a provider of regional energy security, after it will produce more than it will consume.
He added that the first gas from the Black Sea could be extracted starting with the second half of this year. At the same time, the new law increases the investment deduction allowance from 30% to 40% of the total additional income tax. The senators of the Social Democratic Party (PSD), the National Liberal Party (PNL), the Democratic Union of Ethnic Hungarians in Romania (UDMR) and Save Romania Union (USR) voted in favor of the document. During the plenary debates, the leader of the Social Democrats, Radu Oprea, said that the law was good and necessary for all Romanian citizens, and the money coming from the gas exploitation will reach the local communities.
Radu Oprea: “We have a war near Romania’s borders, we need gas, we need Black Sea Oil & Gas (USA) to be able to supply gas to the citizens of Romania starting next month. It means 10% of the gas that others in this room want to import from other countries. This is not possible and desirable for the Romanian economy, for the Romanian industry, and for the citizens of Romania.”
The Alliance for the Union of Romanians (AUR) is the only party that has voted against this law, which they label as anti-national, and they have demanded that the exploitation of natural gas be done exclusively by Romanian companies.
Senator Rodica Boancă: “AUR has voted against this national betrayal and against this plundering, which will lead to the exploitation and sale of resources of national and strategic importance, especially in an economic war that we are currently going through, and it is very clear that the price of gas will not decrease, we will not have a free energy market. “
Romanias gas production has dropped in recent years, and 2021 brought high energy prices across Europe. The Romanian economic area of the Black Sea has reserves of over 200 billion cubic meters, an amount that could cover national consumption for the next 20 years. In 2019, in Romania, 79% of the total amount of natural gas was from domestic production, 8% imported from Russia and the remaining 13% from other countries. This in the context in which, in Finland and Macedonia, the gas is imported entirely from Russia, Latvia imports 93% Russian gas and Estonia 79%. Germany, Europes strongest economy, imports almost half of its natural gas from Russia and the other half from other countries. (LS)
