EBRD Takes Equity in Black Sea Oil & Gas

The European Bank for Reconstruction and Development (EBRD) has become a minority shareholder in Carlyle Group-backed Black Sea Oil & Gas (BSOG), they said November 29. Neither party had said how much the bank had paid, or how large the stake was, at time of press, but it will receive one board seat as part of the investment, they said.

BSOG is approaching the final investment decision to develop Midia gas reserves in the Black Sea, using five production wells and a subsea gas production system, an offshore production platform, a 126-km offshore and onshore gas transmission pipeline and an onshore gas treatment plant.

The head of Carlyle International Energy Partners Marcel van Poecke said the company looked forward to working with EBRD, with its strong market standing, to bring gas ashore in the coming years. 

The EBRD's regional director for Romania and Bulgaria Matteo Patrone said that the "landmark equity transaction would support the development of the private upstream oil and gas company in Romania. We are also committed to providing assistance to the Romanian government in further improving the country’s legal and regulatory framework for offshore oil and gas operations and building regulatory capacity for the whole industry.”

BSOG's portfolio is made up of XV Midia Shallow Block and XIII Pelican Block concession in the Romanian Black Sea where it is the operator and holds a 65% interest. It also has discoveries in the Black Sea, Ana and Doina to develop.

Romania receives all its imports from Russia, through the TransBalkan pipeline that enters the country from Ukraine in the north. But Romania's potentially very large Black Sea gas reserves have attracted producers and could transform the country's fortunes. 

Update January 29 2018: EBRD said its total investment in Romania in 2017 was €546mn of debt and equity investments, of which 93% to the private sector, but has still not provided the amount for BSOG.