Black Sea Oil & Gas proceeds with the $400 million Midia Gas Development Project

Black Sea Oil & Gas together with its co-venture partners, Petro Ventures Resources and Gas Plus International B.V. announced that they have approved the Final Investment Decision to proceed with the $400 million Midia Gas Development Project offshore Black Sea.

The project, which is the 1st new offshore gas development project in the Romanian Black Sea to be built after 1989, consists of 5 offshore production wells (1 subsea well at Doina field and 4 platform wells at Ana field) a subsea gas production system over the Doina well which will be connected through an 18 km pipeline with a new unmanned production platform located over Ana field. A 126 km gas pipeline will link the Ana platform to the shore and to a new onshore gas treatment plant (“GTP”) in Corbu commune, Constanta county, with a capacity of 1 BCM per year representing 10% of Romania’s consumption. The processed gas will be delivered into the NTS at the gas metering station to be found within the GTP.

Black Sea Oil & Gas has secured a long-term gas sales agreement with a Romanian subsidiary of ENGIE. The contracted volumes refer to all MGD Project gas production, reduced by the volumes that the producers are currently obliged to sell on the centralized market. Black Sea Oil & Gas has also secured a gas transmission contract with Transgaz S.A. (“Transgaz”) for the transport of the production into the National Transmission System for a contractual period of 15 years.

The entire project infrastructure, including all offshore and onshore facilities, has been contracted to be built, installed and commissioned under an EPCIC Contract with GSP Offshore SRL, with a contracted delivery date Q1 2021. 

Mark Beacom, BSOG CEO commented: “This project is very much a pioneering project with many firsts having been successfully achieved in Romania. Together with our joint venture partners we very much appreciate all the help we have received along the way from the many Romanian institutions, contractors, Transgaz and our community of Corbu which were vital for reaching this critical milestone of FID and we look forward to build and operate this game changing project for Romania’s energy industry.”

Black Sea Oil & Gas, owned by Carlyle International Energy Partners and the European Bank for Reconstruction and Development, is a Romanian based independent oil and gas company, targeting exploration and development of conventional oil & gas resources. The company’s current portfolio is made up of XV Midia Shallow Block and XIII Pelican Block concession in the Romanian Black Sea where it is the operator and holds a 65% interest.