BUSINESS

New oil royalties system to be discussed in November with IMF delegation

Prime Minister Victor Ponta announced that the new oil royalties system will be submitted for public debate as soon as the official visit of the International Monetary Fund (IMF), the European Commission (EC) and the World bank (WB) delegations scheduled for this November ends. The Romanian Government is working with the World Bank on a new system of oil royalties, differentiating onshore and offshore reserves, the Prime Minister had announced in June this year, on the occasion of a conference focusing energy issues. ‘On January 1, 2015 we will have a new Oil Law, with new royalties. The idea is to get little out of very much, not very much out of little. We consider stability over 15-20 years,’ said Ponta on the same occasion. He also asserted that royalties should be differentiated between onshore and offshore reserves, as the investment levels are much different. ‘Definitely it’s not possible to have the same royalties for onshore and offshore reserves, as there are huge differences in investments. I discussed with Exxon and Petrom representatives; they say that the investments [in the Neptun perimeter of the Black Sea] will be way in excess of EUR 1 bn. Any company has to recover its costs,’ the Prime Minister explained at the abovementioned conference. He stressed that the new royalties will apply only to future concessions.

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