Romania’s Black Sea Oil & Gas is set to become first company to tap into the country’s vast offshore resources.
The firm is aiming to start production at two gas fields off the coast by 2019.
Two wells were discovered holding an estimated 10 billion cubic metres of gas in 2008 some 120 kilometers offshore.
Black Sea Oil & Gas has rights over the XIII Pelican and XV Midia Shallow blocks.
Chief Executive Mark Beacom said: “We’re hopeful for the first gas in 2019.”
He said the company is working on engineering works, talks with state gas pipeline operator Transgaz ROTGN.BX, sales agreements and other activities needed to secure shareholders’ final investment agreement.
He added: “At that point we could turn to our shareholders and partners and ask for a check for about $400 million to go ahead and build everything.”
The company aims to get shareholder agreement in October but Beacom said that could potentially be pushed back due to uncertain regulations in the country.
The Romanian government plans to overhaul royalty levies for oil and gas production this year and Beacom said that could affect shareholders’ decision on whether the project is viable.