First Gas from the MGD Project Offshore Romania Delivered to the National Transmission System
Black Sea Oil & Gas together with its co-venture partners, Petro Ventures Resources SRL (Petro Ventures) and Gas Plus Dacia SRL (Gas Plus) announced that production has started from the Midia Gas Development Project (MGD Project) offshore Romania and first gas was delivered to the National Transmission System (NTS) on June 15th.
The MGD Project is expected to deliver approximately 0.5 BCM this year, with peak production expected to be approximately 1 BCM per year for the following three years out of the ten of field life estimated for the Ana and Doina gas fields.
It is the first new offshore gas development in Romania in over 30 years and the only project under development today. It consists of 5 offshore production wells (1 subsea well at Doina field and 4 platform wells at Ana field), one unmanned production platform located on Ana field, a 126 km gas pipeline linking the Ana platform to the shore and to a new onshore gas treatment plant (GTP) in Corbu commune, Constanta County. The processed gas is delivered into the NTS at the gas metering station within the GTP.
“It has been a long and challenging journey to finally reach this significant milestone for the country. A number of firsts were achieved in Romania, all during a global pandemic and, more recently, conflict in Ukraine that threatened to impact Black Sea operations.
The result of all these efforts is that MGD Project provides not only 10% of Romania’s gas demand, but the path, and possibly even the infrastructure, for other developers in the Black Sea, as well as to launch a number of green energy development initiatives, making MGD an integrated energy transition infrastructure,” Mark Beacom, BSOG’s CEO, commented.
“The start of gas production within the MGD Project, put into operation by Black Sea Oil & Gas, is a historic moment for the energy industry of Romania, being the first gas production project in the Romanian sector of the Black Sea in the last 30 years!
The project inaugurated today will generate one billion cubic meters of gas per year, which means that the domestic production will increase and will be able to ensure around 90% of Romania’s consumption needs. It is an important project, a significant investment, and a state-of-the-art technology. Romania also has available the recently discovered Caragele field, in Buzau County, which represents the largest gas resource discovered in the last 30 years in Romania. We also plan to build reactors 3 and 4 in Cernavoda, develop the small modular reactors (SMR) technology and increase the share of renewable energy, so that Romania can become energy independent and an important supplier in the region,” Romania’s Prime-Minister Nicolae Ciuca said.
Background
In November 2018, Transgaz CEO Ion Sterian, and Black Sea Oil & Gas CEO Mark Beacom signed the gas transmission contract for the transport of the Midia Gas Development Project production into the National Transmission System. The contract 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.
Also, in November 2018, BSOG, together with its co-venture partners, Petro Ventures and Gas Plus, has awarded jointly the Engineering, Procurement, Construction, Installation & Commissioning (EPCIC) contract for all offshore and onshore facilities and the Development Drilling Contract to GSP Offshore, for the Midia Gas Development Project, offshore Romania.
BSOG and its co-venture partners announced on February 7, 2019, that they have approved the Final Investment Decision (FID), to proceed with the USD 400 million Midia Gas Development Project offshore Black Sea.
BSOG together with its co-venture partners announced on April 15, 2019, that, following the taking of FID on February 6, 2019, they have now received the approval from the Romanian Government through the National Agency for Mineral Resources (NAMR) for their Field Development Plan (FDP) for the development of the Ana and Doina natural gas fields which make up the Midia Gas Development Project.
Transgaz and BSOG, on August 30, 2019, signed the order for the commencement of works for the projects of the two companies for taking over production coming from the Midia Gas Development Project into the National Transmission System.
On September 17, 2020, BSOG and GSP Offshore announced the start of the stage of laying the pipelines of over 120 kilometers that will carry gas to Romania and cover 10% of the country’s consumption needs.
About BSOG and its co-venture Partners
BSOG, owned by Carlyle International Energy Partners and the European Bank for Reconstruction and Development, is a Romanian based independent energy company, targeting offshore development of gas resources. The company’s portfolio is currently made up by the MGD Project and two production licenses at Ana and Doina gas fields in XV Midia Shallow Concession, Romanian Black Sea, where it is the operator and holds a 70% interest. BSOG operates the Concession on behalf of its partners Petro Ventures Resources SRL (20% interest) and Gas Plus Dacia SRL (10% interest).
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. On 31 December 2021, the Group had 43 exploitation concessions located throughout Italy, a total of approximately 1,800 kilometres of regional distribution and transportation network in 40 municipalities, serving a total of more than 60,000 end users, with a staff of 159 employees. Gas Plus holds 10% interest of the MGD Project and two production licenses at Ana and Doina gas fields in XV Midia Shallow Concession.
Petro Ventures, a private investment group, holds 20% of the MGD Project and two production licenses at Ana and Doina gas fields in XV Midia Shallow Concession.
