November 21 (SeeNews) - Romania-based Black Sea Oil & Gas (BSOG) said that together with its co-venture partners, Petro Ventures Resources and Italy's Gas Plus International, it has signed the a ten-year gas supplies deal with a local subsidiary of France's Engie.
The deal with Engie Energy Management Romania involves gas supplies from the Midia Gas Development Project, BSOG said in a press release on Tuesday.
"We are delighted to have secured this important agreement for the sale of our gas. BSOG is working steadily towards achieving all the remaining milestones on the project required to reach FID [final investment decision] such that a decision can be taken on whether to approve FID. The assessment of the Offshore Law on the project’s economic viability remains a key part in determining whether a favourable decision to FID will be taken," Black Sea Oil & Gas CEO, Mark Beacom, said.
Expected contractual volumes at project completion represent 0.5 bcm per year. The gas will be delivered at Vadu entry point into the National Natural Gas Transmission System from Romania.
The project consists of five production wells, 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 Gas Treatment Plant.
"The MGD project gas can be stable long-term source of supply for the development of Engie’s position in Romania and the region and we strongly believe that this would enhance Romanian security of supply for years to come," Edouard Neviaski, CEO of Engies Global Energy Management business unit said.
BSOG, owned by Carlyle International Energy Partners and the European Bank for Reconstruction and Development, is active in the 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.
Petro Ventures, a private investment group, holds 20% interest in the XV Midia Shallow Block and XIII Pelican Block concession in the Romanian Black Sea.
Gas Plus is the fourth largest producer of natural gas in Italy active in the main sectors of natural gas industry, particularly in exploration, production, purchase, distribution and sale to retail customers.
Engie is focused on three core activities: low-carbon power generation, mainly based on natural gas and renewable energy; global networks and customer solutions. In Romania, the group is active in natural gas distribution (network of 19,000 kilometers), in supply of natural gas and electricity as well as associated services (1.8 million customers) and in renewable production (two wind farms with a total installed capacity of 98 MW).