Romania is considering higher taxes for Black Sea projects Report

Insight 23 August 2018

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Report summary

On 2 August 2018, the president of Romania put the brakes on the Offshore Law that the Parliament passed just a month earlier. The decision followed strong opposition from the oil and gas industry to the new offshore tax proposal. Uncertainty around regulation and taxation has already delayed crucial FIDs in the Romanian Black Sea. The proposed law provided much needed clarity to the regulatory framework for offshore production. But simultaneously, it introduced an extra revenue tax on offshore gas. We now expect the Parliament to review the law until the end of 2018 at the earliest. Offshore companies will have to wait for the outcome before they can proceed with their investment plans.

Executive summary
- Historical background
- Offshore law - current status
- Extra revenue tax on offshore gas
- New tax puts FIDs at risk and does not guarantee more tax revenues
- Competitiveness of Romanian offshore tax terms will decrease
- Offshore gas projects are vital for regional energy security
- Conclusion