Debate is raging about the Romanian “offshore” law setting out the legal framework for oil & gas exploration and production in the Black Sea offshore perimeters, fuelling political turmoil and deterring investment. After a failed attempt to pass the Offshore Law in summer, there are signs of much needed stability.
In July 2018, the Romanian Parliament approved the Offshore Law and sent it to the president for promulgation. The president asked Parliament to reassess the Law, pointing to the lack of long-term stability and predictability. On 24 October 2018, after reaching political consensus, the amended Offshore Law was approved by the Parliament and sent to promulgation.
The Offshore Law aims to fill a legislative gap, the existing legal framework being tailored mainly for oil & gas onshore operations. The complexity of offshore exploration and production requires a specific licensing and development regime as well as a stable fiscal policy, one that strikes a balance between the interests of the host state and the investments and risks undertaken by the investor.
Here is a brief outline of the main provisions of the Offshore Law…