Government of Romania

09/17/2020 | Press release | Distributed by Public on 09/17/2020 10:16

Prime Minister Ludovic Orban attended the start of the construction works at the subsea pipeline within the Midia - MGD natural gas project, developed by Black Sea Oil(...)

Statements by Prime Minister Ludovic Orban at the start of the construction works at the subsea pipeline within the Midia - MGD natural gas development project

[Check against delivery]

Ludovic Orban: Your Excellency, Mr Ambassador of the United States, Adrian Zuckerman, dear representatives of companies involved in this project, dear colleagues, Ministers, dear MPs, dear mass media representatives, I am honoured to be present today, at a symbolic moment, in a fundamental project for Romania's economic development.

The symbolic moment is practically the entry of the pipeline into the sea, how it goes from the land towards the sea. Because it does not go directly into the sea, but it goes underground first, under the beach. Basically, it is a symbolic moment that shows the clear will to complete an extremely important project for Romania, namely, the start of the exploitation of our first natural gas deposit offshore.

Two companies are involved in this project, Black Sea Oil & Gas, which works in partnership with the Oil Services Group, a very concrete illustration of the strategic partnership between Romania and the United States. Black Sea Oil &Gas, which is owned by the Carlyle Group, which has a license to operate and exploit the deposit, in partnership with a company, the Petroleum Services Group, 100% Romanian, a company that has developed spectacularly in the last 15 years and has carried out projects in many areas of the world, complex projects, extremely important projects, achieved in the best conditions.

Here, in addition to the 100 million invested so far, the value of this project is $ 400 million, a project with great value and a great complexity that ultimately must achieve a simple thing: to carry the gas found from the offshore field in Romania's natural gas network, so that the gas can reach the natural gas transmission and distribution infrastructure.

Obviously, Transgaz is also involved in this project, which builds - it is already underway - the pipeline from the natural gas processing plant to the Transit 1 pipeline and another pipeline through which the extracted natural gas will reach the Transgaz network. I am convinced that these investments are correlated, so that, at the moment when the exploitation starts, the extracted gas can be connected to the gas network managed by Transgaz.

Of course, this project is the first project of exploitation, of capitalization of the resources that Romania has in the Black Sea, of the offshore resources.

As Government, we encourage the development of other projects as well, because, from our point of view, all resources must be capitalized on in a way that generates economic development potential and, ultimately, leads to an increase in the quality of life in Romania, increased quality of services.

Let's not forget that the Government I am leading has mobilized one billion euros for the project to establish natural gas distribution in localities where there is no such natural gas distribution, so that the Romanian gas reaches the homes of Romanians and, of course, we also support all investments through which natural gas can be capitalized on so as to generate added value, well-paid jobs and quality and competitive products.

I wish good luck to partners in this project. I assure them that the Government is backing this project and is supportive in all its stages Thank you.