The US investment company Carlyle Group and the European Bank for Reconstruction and Development (EBRD) have reached an agreement to sell Black Sea Oil & Gas (BSOG) - the largest operating natural gas producer from fields in the Romanian part of the Black Sea. The buyer is the Netherlands-based energy company Mazarine Energy, Reuters reports.
Financial parameters of the deal were not disclosed. The transfer of ownership is subject to approval by the relevant regulatory authorities. The EBRD holds a 10% stake in BSOG, having acquired a minority stake in 2017.
Carlyle invested in the Romanian company in 2015, when it was still mainly engaged in exploration. In the following years, BSOG invested over $400 million in the Midia Gas Development project - the first new offshore gas field to come on stream in Romania in more than three decades.
Production is due to start in June 2022 from the Ana and Doina fields. The infrastructure includes an offshore platform, a 126-km underwater pipeline and a natural gas processing facility in Vadu.
Since the start of operations, the project has covered approximately 12% of Romania's domestic natural gas consumption, according to data provided by the sellers. Reuters estimates its stake at around 10%.
After the deal closes, BSOG will continue to operate the Midia project, which should ensure continuity of production.
Mazarine Energy already has a presence in the Romanian energy market, as well as assets in Tunisia and the Netherlands. The acquisition will expand its natural gas production activities in the Black Sea.
The sale comes at a time when Romania is preparing to significantly increase its own gas production. OMV Petrom and state-owned Romgaz are developing the Neptun Deep field, which is expected to start production in 2027.
The project has the potential to turn Romania into the largest natural gas producer in the European Union and a net exporter of the raw material.
The development of the Black Sea gas fields is of strategic importance for the energy security of Southeast Europe, including Bulgaria, as it creates opportunities for diversification of regional supplies.