Speaker: EPG – Radu Dudău

The Energy Policy Group (EPG) organized on 21 May 2015, with the support of the Romanian Black Sea Titleholders Association (RBSTA), a roundtable on The Romanian Offshore Petroleum Fiscal Regime. Participants included representatives of relevant public institutions (the Romanian Government, the National Agency for Mineral Resources, the Romanian Parliament), representatives of RBSTA member-companies, fiscal and legal consultants, academia and specialized press. Talks were held in accordance with Chatham House rules.

The roundtable was organized in the context of the Romanian Government being in full process of drafting a new oil and natural gas (O&G) fiscal framework. Clarifications in this area are necessary and expected by investors and public opinion alike. The fiscal system is a decisive factor for O&G operators. It is the main tool for distributing revenue between state and investors and it must offer a fair, win-win outlook on the long term.

The investment cycle of an oil project is long-term – typically 25-30 years, or longer for offshore projects. In addition, offshore projects in particular require large upfront exploration capital investments. Also, the investment risk for offshore exploration activities is high, and the cost recovery timeframe can be over a decade.