Offshore law, tabled in Parliament

The offshore law, which regulates Black Sea field exploration operations, was tabled in Parliament.

The bill, signed by the three leaders of the coalition, will most likely enter the emergency procedure next week, in the Senate debate, as the first notified body.

According to the document, foreign companies will have the right to freely sell hydrocarbons produced from the oil perimeters of the Black Sea, and on land, and will not have pricing restrictions.

Natural gas extracted from the Black Sea will primarily cover the energy needs of the domestic market, which means that the Romanian state will have priority in purchasing and the surplus will be exported. With details, Catalin Purcaru.

Reporter: Catalin Purcaru - 60% of the profit obtained from natural gas exploitation will go to the state and 40% to investors. Companies will also be able to deduct 40% of their investment, compared to 30%, as required by current legislation.

The draft law establishes the same fiscal framework for onshore operations, land perimeters deeper than 3.000 meters.

Prime Minister Nicolae Ciuca, the president of the PNL, claims that approximately one billion cubic meters of natural gas will be produced per year in the Black Sea, and Romania will become a provider of regional energy security.

Nicolae Ciuca: By this law, with certainty, starting this year, the company Black Sea Oil & Gas will deliver gas for the first time I think no later than in the middle of the year. It exploits a perimeter where it will provide approximately one billion cubic meters per year.

Reporter: The President of the Chamber of Deputies, Marcel Ciolacu, the PSD leader, considers that the amendments to the Offshore Law will unblock the investments in the Black Sea.

Marcel Ciolacu: We have an approach for the Romanian state to be a priority for access to gas.

Reporter: Deputy Prime Minister Kelemen Hunor, president of UDMR, states that a new offshore law will bring benefits to both the Romanian state and investors.

Kelemen Hunor: From our point of view, it is important to develop the petrochemical industry which is a big consumer of natural gas.

Reporter: From the opposition, the USR deputy, Cristina Pruna, announced an amendment to the legislative project.

Cristina Pruna: The money obtained from royalties and additional taxes should go, taking into account the Norwegian model, to the Romanians' pensions.

Reporter: The draft law will be debated in the emergency procedure, next week, in the Senate, as the first notified body.

Translated by: Radu Matei