Benefits for Romania
New offshore oil and gas developments will bring significant economic benefits to Romania
Investments into developing Romania’s offshore oil and gas resources will promote Romania’s regional competitiveness, improve its infrastructure and energy security, and bring significant financial benefits to its economy. The large investments into the country’s offshore gas resource development would generate significant additional government revenues through taxes and royalty payments. There are also indirect benefits to the country with new investment and jobs created through the growth of new service industries and suppliers. This has a multiplier effect that creates benefits to the Romanian economy as a whole as well as its citizens.
Companies investing in offshore resource development will bring state-of-the-art technology to Romania and share know-how with local partners. This includes specialized Black Sea drilling technology allowing operators to drill efficiently and safely in water depths over 3,000 meters, international project management skills, and global operational expertise.
Expanded pipeline infrastructure
Offshore resource development will also lead to significant investment in Romania’s pipeline infrastructure to bring new supplies to domestic and international markets. This has positive benefits of:
- Creating construction and operations jobs for the pipelines and associated facilities;
- Improving the interconnectivity of the Romanian gas market with the wider European market, which increases the security of gas supply for Romanian consumers; and
- Increasing cross-border trade with neighboring countries, which can improve Romania’s international balance of payments.
Potential $6+ bn* in near-term investment for new offshore projects and associated infrastructure
Boosts investor confidence, making Romania more attractive for additional investment *only projects in advanced stage are to be considered
Generate significant State Budget revenues
According to an independent report, investments in offshore Romania can generate over 22 years a direct, indirect and induced impact of 26 bn USD state budget revenues, including 5.5 bn USD royalties. Read more: Deloitte Report (May 2018) - The contribution of Black Sea oil & gas projects to the development of the Romanian economy
Increased security of supply
New domestic production off-sets decline in onshore production. New infrastructure and 2-way interconnections provide long term supply diversity/independence. Read more: A fully-integrated internal energy market
Catalyst for economic growth
New industries and consumers in the gas value chain – Petrochemicals, power generation, services, etc. Grow capabilities and capacity in deep water offshore development. More money generated in the national economy by employers, contractors, etc. Read more: Deloitte Report (May 2018) - The contribution of Black Sea oil & gas projects to the development of the Romanian economy
A competitive gas market and interconnected transportation system will bring gas supply security to Romania Better cross-border connections of the Romanian national gas pipeline system with the systems of its European neighbors will allow the Romanian gas market to become a more integrated part of the single EU gas market. A more integrated market will increase the security of gas supply to the consumers in Romania by diversifying supplies, and will ensure security of demand for producers through an increased access to a large, competitive market. The Romanian gas market will become more competitive, which further supports additional investments in developing Romania’s offshore gas resources.
Makes Romania a key player in the EU Green Deal
Natural gas represents a valuable part of the solution for realizing the EU’s Green Deal effort. Offshore natural gas provides an essential EU source of energy in the transition to a net-zero emission energy.
The significant investments required to develop offshore resources will also create additional economic activity that will directly support Romania’s growth. Including from:
- The development of new industries to service the offshore operations;
- Follow-up investments by other energy companies subsequent to lead-investments made by large international energy companies; and
- A multiplier effect which creates benefits to the Romanian economy as a whole.