November 23 (SeeNews) - Romania-based Black Sea Oil & Gas (BSOG) together with its co-venture partners, Petro Ventures Resources and Gas Plus International said on Friday that it has awarded contracts for the Midia gas development project to GSP Offshore.
Building the entire project infrastructure is estimated to take two years and the cost is seen at $400 million (352 million), of which 70% will be capital from Romania, the company said in a press release.
The execution of the first contract, which is subject to final investment decision, covers the procurement, construction, installation and commissioning of the complete subsea gas production system over the Doina field.
It also includes the construction, installation and commissioning of new unmanned production platform located over Ana field which will be built at GSP fabrication yard in Constanta, as well as the subsea pipeline system that will link the production platform to the shore.
Finally, it also stipulates an onshore pipeline and a new gas treatment plant (GTP) that will be built in Vadu village.
The second contract has been concluded for the development drilling of the five production wells (1 subsea well at Doina field and 4 platform wells at Ana field) for which GSP will deploy GSP Uranus jack-up rig.
"We are now very pleased to announce that we have concluded this EPCIC [Engineering, Procurement, Construction, Installation & Commissioning] contract and Development Drilling Contract with the largest Romanian offshore contractor for our pioneering MGD project that could provide 10% of Romania’s gas needs, utilize the services of local contractors and subcontractors, deliver gas into the Romania market and deliver significant benefits to our local community as well as to the country," Mark Beacom, CEO of BSOG, said.
At the end of October, the lower house of Romania's parliament approved a bill freezing the royalties and taxes paid by companies producing natural gas at fields offshore Romania for the period of production.
"We are proud to have been selected for this important project for Romania. GSP entered the offshore construction business in 2009 and has gained valuable experience in similar projects in other countries. Our local and global expertise in both drilling and offshore construction, together with our assets and capabilities in Romania enables us to successfully deliver the MGD project," GSP Offshore CEO Gabriel Comanescu said.
Earlier this month, BSOG and its co-venture partners have signed a ten-year deal with Engie Energy Management Romania, a subsidiary of France's Engie, for the supply of gas from the Midia gas development project.
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 and 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.
Gas Plus is the fourth largest producer of natural gas in Italy active in exploration, production, purchase, distribution and sale to retail customers.
GSP performs offshore integrated services the for oil and gas industry and operates an extensive and diversified fleet including eight mobile offshore drilling rigs.