Romania License Round XI / 2019

Romania: Licensing Round XI

In July 2019, Romania’s National Agency for Mineral Resources (NAMR) announced the 11th concession round. The offer consists of 28 blocks totaling over 25,125 square kilometers. 22 blocks are located onshore across all regions of Romania, while 6 blocks are offered offshore on the Black Sea. Block sizes range in size from 800 to 1000 square kilometers. The average block size is 897 km2.

Round XI blocks relative to existing production

About Romania

Romania currently has a production of 80,000 bbl/day oil and 1,000 mmcf/day of gas for a total of 250,000 boe/day . Estimated oil reserves stand at 600 million barels of oil and 3.6 BCF of gas. Romania’s energy demand can absorb all current production. 66% of oil demand is covered by imports. Most natural gas demand is covered by domestic production.

Oil and gas industry is regulated by several national agencies (NAMR, ANRE, ANPM) and the majority of concessions are held by the former NOCs Petrom and Romgaz ( currently listed publicly). Oil and gas production started before 1900 in Romania. While the country was one of the largest petroleum producers in the world in the first half of the 20th century, oil and gas production peaked in the 1970s (500,000 barrels of oil per day in 1976) and 1980s (37 bcm/yr of gas in 1983). Development had decreased since then and production dropped.

Royalty rates range between 3 and 13.5%. Corporate tax sits at 16%. A sales tax (VAT) of 19% applies to sale price. Drilling permit fees also apply.

Over 20 E&P operators are currently active in Romania. Oil and gas pipelines are state owned, while the four main refineries are private (Petrobrazi, Petrotel, Petromidia and Vega). Five cross-border natural gas pipelines exist. Export of oil is not restricted. Three oil terminals are operating at tidewater (Black Sea coast) and on the Danube river. Gas is typically sold and consumed in country, with a controlled domestic supply requirement.


Transilvania Region

Four blocks are offers in the North-Western region of Transilvania region, totalling 4095km2:

Block Name Area(km2)
Maramureş Vest 1004.189
Transilvania Nord Est 1098.183
Transilvania Est 1055.755
Transilvania Sud 938.478

Muntenia Region

Twelve blocks are offered in the Southern region of Muntenia, totaling 11380 km2:

Block Name Area(km2)
Getica Vest 914.184
Getica Est 985.104
Moesia 1 971.014
Moesia 2 968.684
Moesia 3 902.451
Moesia 4 976.425
Moesia 5 888.984
Moesia 6 1000.857
Moesia 7 1000.236
Moesia 8 902.100
Muntenia Nord Est 1 719.584
Muntenia Nord Est 2 738.317
Muntenia Nord Est 3 810.199

Moldova Region

Five blocks are offered in the Eastern region of Moldova, totaling 4377km2.

Block Name Area(km2)
Moldova 1 983.599
Moldova 2 961.055
Moldova 3 900.120
Moldova 4 997.405
Moldova 5 653.373

Black Sea Region

Six blocks are open for bids in the offshore Black Sea region, totaling 5274km2:

Block NameArea(km2)
Marea-Neagră-1 881.000
Marea-Neagră-2 897.579
Marea-Neagră-3 802.000
Marea-Neagră-4 912.165
Marea-Neagră-5 914.870
Marea-Neagră-6 867.317

With the exception of XI-25 ( Marea-Neagră-3), all Black Sea offers were also open during round X.

Round X offers. All Panonnian Basin and deep Black Sea blocks were awarded, while all Dobrogea and near-shore blocks remain open.

Exploration and development are governed by separate processes regulated by NAMR. The exploration licensing process (public tender, submission, award and approval) is followed by a development agreement and then a production agreement (reserve evaluation, license approval and permitting, field development planning and execution, environmental approval, production permits, etc).

Exploration blocks and development permits

Chinook Consulting has over 200 cumulative years of experience in the Romanian Oil and Gas Industry, with strong business relationships in Romania and world wide.

We can assist E&P companies through the entire appraisal, exploration and development phases with access and use of data in or out of country. This includes basin analysis, reservoir evaluation and prospect generation, regional and pool modeling and geophysical evaluation.

Chinook has a robust and experienced team that can assist in all stages of exploration, seismic program design, well planning and field development including drilling and completions engineering, wellsite geology and geosteering, reservoir engineering and project management.

Please contact us for more information.

Timeline

EventDateRemarks
Bid Round announced24 June 2019Published by NAMR in the Romanian Official Gazette (Monitorul Oficial)
EU announcementTBDBid round announced in European Official Gazette
Data examinationTBDAccessing geological data for blocks of interest. Access fee applies.
Offer deadlineTBD 120 days after EU announcement.
Awards announcementTBDTender winners announced.
Contract negotiationsTBDStarts 15 days after awards announcement, must be concluded within nine months.

Author:
Peter Bauman

Posted On:
August 2, 2019

Category:
Annnouncements, Blogs, News