Major changes to Romanian oil and gas taxation could be introduced in early 2017. These changes are driven by the offshore Black Sea discoveries, domestic gas market deregulation and a need to revive the mature onshore. We believe two separate fiscal regimes should be developed – one for the onshore, and one for the offshore. Both need to be competitive, flexible and stable to incentivise long-term investment. However, falling hydrocarbon prices posed a dilemma for the government at this critical moment, as the government also needs to stabilise the state budget revenues.