Partners sanction Midia gas development offshore Romania

Black Sea Oil & Gas and its partners Petro Ventures and Gas Plus have taken the final investment decision to proceed with the $400-million Midia gas development project offshore Romania.

Midia gas development project in the Black Sea offshore Romania
Midia gas development project in the Black Sea offshore Romania

Offshore staff

BUCHAREST, Romania– Black Sea Oil & Gas (BSOG) and its partners Petro Ventures Resources SRL and Gas Plus International B.V. have taken the final investment decision to proceed with the $400-million Midia gas development project in the Black Sea off Romania.

The MGD project will consist of five production wells – one subsea well at the Doina field and four platform wells at the Ana field — a subsea gas production system over the Doina well which will be connected through an 18-km (11-mi) pipeline to a new unmanned production platform over Ana.

A 126-km (78-mi) gas pipeline will link the Ana platform to the shore and to a new onshore gas treatment plant in Corbu commune, Constanta county, with a capacity of 1 bcm/yr, which represents 10% of Romania’s consumption. The processed gas will be delivered into the National Transmission System (NTS) at the gas metering station to be found within the gas treatment plant.

BSOG has secured a long-term gas sales agreement with aRomanian subsidiary of ENGIE. The contracted volumes refer to all MGD project gas production, reduced by the volumes that the producers are currently obliged to sell on the centralized market. The company has also secured a gas transmission contract with Transgaz S.A. for the transport of the MGD project production into the NTS for a contractual period of 15 years.

The entire project infrastructure, including all offshore and onshore facilities, has been contracted to be built, installed, and commissioned under an EPCIC contract with GSP Offshore SRL, with a contracted delivery date of 1Q 2021. The jackupGSP Uranus will drill the five production wells.

BSOG said that all the contracting activities for this project will, in total, have Romanian content of roughly 70%.

This year the company expects to complete the project’s detailed engineering, start the fabrication of the Ana wellhead platform at the shipyard in Agigea, begin the civil constructions at the gas treatment plant site in Corbu, and purchase many long lead items.

BSOG CEO Mark Beacom said: “This project is very much a pioneering project with many firsts having been successfully achieved in Romania. Together with our joint venture partners we very much appreciate all the help we have received along the way from the many Romanian institutions, contractors, Transgaz and our community of Corbu which were vital for reaching this critical milestone of FID, and we look forward to build and operate this game changing project for Romania’s energy industry.”

According to the company, this is first new offshore gas development project in the Romanian Black Sea to be built after 1989.

02/08/2019

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