Legal & Tax Alerts

Public tender for petroleum concessions in Romania

The National Agency for Mineral Resources of Romania (NAMR) will auction 28 offshore and onshore concessions of petroleum blocks for exploration, development and operation. The announcement (Round XI) is made after 10 years as of the last round (Round X/2009).

Petroleum Blocks up for concession (key facts)

  • Blocks
    6 x Offshore Blocks (Black Sea) of 801- 912 km2
    22 x Onshore Blocks (through out Romania) of 653- 1,055 km2
  • Concession period
    Up to 30 years, plus up to 15 years of extension (according to the law)
  • Term for submission of bids
    120 business days after publication of tender announcement in the EU Official Journal
  • Bidding Procedure
    To be published on the NAMR’s website (www.namr.ro)

 

Concession procedure by NAMR in Round XI:

1. 6 Offshore blocks: Marea Neagra 1 – 880.581 km2, Marea Neagra 2 – 897.579 km2, Marea Neagra 3 – 801.896 km2, Marea Neagra 4 – 912.165 km2, Marea Neagra 5 – 914.870 km2, Marea Neagra 6 – 867.317 km2.

2. 22 Onshore blocks: Maramures Vest – 1004.189 km2, Transilvania Nord Est – 1098.183 km2, Transilvania Est – 1055.755 km2, Transilvania Sud – 938.478 km2, Getica Vest – 914.184 km2, Getica Est – 985.104 km2, Moesia 1 – 971.014 km2, Moesia 2 – 968.684 km2, Moesia 3 – 902.451 km2, Moesia 4 – 976.425 km2, Moesia 5 – 888.984 km2, Moesia 6 – 1000.857 km2, Moesia 7 – 1000.236 km2, Moesia 8 – 902.1 km2, Muntenia Nord Est – 719.584 km2, Muntenia Nord Est 2 – 738.317 km2, Muntenia Nord Est 3 – 810.199 km2, Moldova 1 – 983.599 km2, Moldova 2 – 961.055 km2, Moldova 3 – 900.12 km2, Moldova 4 – 997.405 km2, Moldova 5 – 653.373 km2.

3. Term for submission of offers: The invitation for concession is addressed to foreign and Romanian legal entities. The offers must be submitted until 3:00 pm of the 120th business day after the date when the tender announcement will be published in the EU Official Journal.

4. Procedure: The procedure for organizing the public tender will be available on the website of the NAMR (www.namr.ro) after the official opening of Round XI (i.e. the date of publication in the EU Official Journal) and will include: details regarding the bid evaluation method, the scores applied to financial capacity, technical capacity, exploration program, environment restoration project and the due dates for submissions, the dates for the opening and evaluation of the offers and for the announcement of the winner of the auction and the petroleum agreement template etc.

The criteria for the evaluation of the offers and of the bidders, such as: the minimum proposed program for exploration, the technical and financial capacity, the environmental impact and its restoration program, the programs for technology transfer and the personnel training, pre-feasibility study etc, shall be in accordance with the Methodological norms for application of Petroleum Law no. 238/2004.

5. Start of the negotiation of petroleum agreements: in 15 days after the notification of the winner of the auction, should no oppositions be submitted.

6. Conclusion of petroleum agreements: 9 months as of start of negotiations. As regards the period of time for the concession, the Petroleum Law no. 238/2004 establishes an initial duration of up to 30 years with the possibility of extension by up to 15 more years.

7. Tax aspects: Petroleum Law no. 238/2004 establishes the level of the royalties for the petroleum agreement holders as a share of the value of the gross production for operation of the oil deposit, transportation or gross value of income for underground storage. The Fiscal Code establishes other taxes for the petroleum industry.

You can read and download this legal alert in PDF format right here.

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