Black Sea Oil & Gas signed the gas transmission contract for the Midia Gas Development Project
Ijdelea Mihailescu law firm assisted Black Sea Oil & Gas (BSOG) throughout the performance of the open season capacity booking process and its finalization by the signing with SNTGN Transgaz of the gas transmission contract necessary for the Midia Gas Development Project (MGD Project), a project aimed at putting into production the natural gas of XV Midia Block, offshore Black Sea, Romania.
With respect to the MGD Project, Mark Beacom stressed that: “While the assessment of the impact of the offshore law on our business is still underway, we continue to move ahead to close out all the remaining milestones, necessary for our Shareholder and Partners to reach a decision. These milestones include completing all the regulatory requirements, the signing of a gas sales agreement with a gas buyer, having in place all the long lead and major equipment purchase orders, EPCIC and Drilling Contracts. The assessment of this Offshore Law on the project’s economic viability will be a key part in determining whether a favorable decision to FID will be taken.”
“Given the natural gas deposits discovered in the Black Sea in the last period, Transgaz intends to expand the National Transmission System in order to set up an additional entry point for the natural gas coming from the Black Sea offshore blocks. The project consists of building a new 20″ (Dn 500) gas pipeline designed to carry natural gas at a pressure of 55 bar, with a total length of approximately 24.37 km that will connect the Black Sea coast with Transit 1 transport pipeline on the route Black Sea coast – Corbu – Sacele – Cogealac – Gradina. The project will contribute to the sustainable development of the area, and all natural gas coming from this block will enter the National Transmission System,” said Ion Sterian, Transgaz’s General Director.
“We are proud that our team was preferred again by Black Sea Oil & Gas, being involved in this process on behalf of our client from the start of negotiations for the execution of a cooperation agreement with SNTGN Transgaz back in 2016. We continue to enjoy the trust granted to us more than 10 years ago, time in which we have successfully assisted Black Sea Oil & Gas in all the steps related to the petroleum exploration and move-ahead to development carried-out by the company and its partners,” Oana Ijdelea stated.
The contract, which is subject to FID, is the outcome of the successful efforts undertaken under a Cooperation Agreement signed in 2016 and an open season capacity booking process which first commenced in July 2017. The contractual period covers 15 years with a first gas delivery date on 1 February 2021 at a transmission capacity of 1 Bcm/year.
The Midia Gas Development Project consists of 5 production wells (1 subsea well at Doina field and 4 platform wells at Ana field), 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 (GTP). The processed gas will be delivered into the National Transmission System operated by Transgaz at the gas metering station to be found within the gas treatment plant.
Black Sea Oil & Gas is a Romanian based independent oil and gas company, targeting offshore exploration and development of conventional oil & gas resources, owned by The Carlyle Group and the European Bank for Reconstruction and Development.
