Both Petrom and Romgaz, Romania’s major hydrocarbon producers, will pay royalties of 3.5% to 13.5% of the value of production until 2014. However, economy minister Lucian Bode recently said he wanted a two-digit increase in royalties before 2014, while president Traian Basescu said Petrom should not expect to pay less than oil players in Arab countries as of 2014.
“If gas prices are deregulated, and they will be, this means companies will have gains without any additional effort and the state should benefit from this. The issue is being discussed at the moment,” Patruti said, without providing further details. At the moment the price of gas produced domestically is around $160 per thousand cubic meters, while Russian imports are three times more expensive.
According to information provided by ANRM, last year royalties amounted to RON1.37 billion (EUR0.31 billion), of which RON1.29 billion have been paid, with the cumulated overdue payment amounting to RON74.9 million.
“No drilling is done without an impact on the environment”
As for shale gas, several companies have expressed their intention to do exploration work, the best-known being Chevron. Patruti says any kind of drilling, including for conventional gas, can have an impact on the environment if it is not done properly from a technical point of view.
“There is a potential risk of groundwater contamination, as in the case of any drilling. For deep drilling the Romanian legislation requires environmental approval,” Patruti says. If any irregularities are found, the authorities can choose not to give the permit, so exploration works cannot be continued. (EUR1=RON4.3742)
(English version by Daniela Stoican)