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.