The Chamber of Deputies adopted on July 9 the offshore law, which sets the rules for offshore oil and gas exploitation in the Black Sea.

The ruling party PSD leader Liviu Dragnea said the law will help Romania no longer be energy dependent on Russia, Agerpres reported.

The law imposes progressive taxes on operators for additional incomes from the sale of the Black Sea production, applied depending on the price of gas. It also provides that 50% of all production needs to be transacted on the local market.

“We could not accept that Romania continue to be energy dependent on the Russians. The fact that we put 50% of all production on bilateral contracts and 50% of transacting on the local market means that Romania turns into one of the few countries in the world that become energy independent,” Dragnea said.

The PSD leader estimates the Romanian state will cash in over USD 20 billion after the new provisions are implemented.

The version of the law presented on Monday passed in a late-evening vote. The law passed with 175 votes in favor, 30 against and 30 abstentions. The deputies of the Save Romania Union (USR), National Liberal Party (PNL) and the Popular Movement Party (PMP) did not vote on it. The Chamber was the deciding body.

After the passing of the law, the oil companies involved in Black Sea gas projects said the new amendments could negatively impact the investment plans.

“We believe the amendments adopted by the Chamber of Deputies will have a significantly negative impact on the offshore oil and gas industry in Romania and will discourage investments in the Black Sea, with the immediate consequence of diminishing the potential for additional production of hydrocarbons in the offshore area. Our association believes that the stability and predictability of the Romanian legislative environment in general, and of the fiscal regime in particular, throughout the duration of the concession contracts, represents an essential condition for the successful development of the offshore hydrocarbon resources,” the Association of the Black Sea Titleholders said, quoted by Adevarul.

The association groups companies that have concessions in the Black Sea, among them Black Sea Oil & Gas, ExxonMobil, Lukoil, and OMV Petrom.

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editor@romania-insider.com