Royalties for the oil and gas extracted by OMV Petrom from the areas taken over during privatization will increase by 40%, according to a preliminary agreement announced by Prime Minister Ilie Bolojan.
„After 20 years since the signing of the initial contract, we managed to rebalance the cooperation with OMV Petrom for the next 15 years,” Bolojan wrote on Facebook.
This concerns a decision and a memorandum adopted by the Romanian Government on Tuesday evening.
Bolojan conveys that Romania will obtain "a fair share" from the exploitation of its natural resources, while OMV Petrom assumes full responsibility for the environment, including the costs of closing unused wells.
The state will no longer pay penalties or debts resulting from previous disputes, as the company drops all lawsuits against Romania.
The Prime Minister also announces that OMV Petrom is dropping the arbitration regarding the Neptun Deep project and accepts the current provisions of the law regulating gas exploitation in the Black Sea.
In return, Romania extends by two years, until December 2027, the exploration period for an offshore perimeter and extends by 15 years the onshore exploitation licenses related to the areas taken over during privatization.
The company will have to carry out its activities "taking into account Romania's national interests and the interests of Romanian consumers," while complying with competition rules in national and European legislation, the Prime Minister states.
All these provisions are set to be transformed into legal and contractual acts within the next two months. The goal, according to Bolojan, is for Romania to strengthen its energy independence, the state to obtain properly sized revenues, and OMV Petrom to have a predictable framework for investments and development at a regional level.