Romania Rushes to Adopt Offshore Gas Law

Romania's parliament passed legislation to regulate offshore gas exploitation in the Black Sea in an unexpected expedited vote late on Monday evening, after months of negotiations and controversy between the government and investors over its financial framework.

While representatives of oil and gas companies and the MPs from the parliamentary commissions on industry, administration and finance were still talking about the bill, Social Democrat leader Liviu Dragnea called a press conference on Monday evening and presented his own amendments to the draft legislation.

Dragnea also said that it would pass later that evening.

The law envisages progressive windfall taxes for operators; 50 per cent of the oil produced will have to go to the Romanian market, and the income will be directed towards a special fund for private-public partnership destined to finance infrastructure projects.

"We cannot accept that Romania keeps being dependent on Russian energy," Dragnea said.

"The fact that I specified that 50 per cent of the production will be sold via bilateral agreements and 50 per cent will go to the Romanian market means that Romania will become one of the few energy-independent countries in the world," he added.

He also said that he estimates that Romania will earn over $20 billion as a result of oil sales.

The bill passed with 175 votes, 30 against and 30 abstentions, but most opposition MPs from the Liberals, Save Romania Union and Popular Movement Party boycotted the vote, complaining that they had been left out of the decision-making process.

Representatives of the oil and gas companies said that the last-minute amendments and late-night vote left them little space to negotiate.

"We believe that the amendments...

Continue reading on: