Black Sea Oil & Gas (BSOG) and its partners have agreed to supply natural gas produced from the Midia Gas Development Project (MGD Project) offshore Romania to Engie.
In this regard, BSOG and its partners Petro Ventures Resources and Gas Plus International have inked a gas sales agreement pertaining to the MGD Project with the French electric utility’s subsidiary Engie Energy Management Romania. The agreement will be subject to a final investment decision (FID) on the project.
Black Sea Oil & Gas CEO Mark Beacom said: “BSOG is working steadily towards achieving all the remaining milestones on the project required to reach FID such that a decision can be taken on whether to approve FID.
“The assessment of the Offshore Law on the project’s economic viability remains a key part in determining whether a favorable decision to FID will be taken.”
Located in the Black Sea, the MGD Project is made up of the Ana and Doina gas fields, which were discovered in 2007 and 1995 respectively. Put together, the two fields have 320 Bcf P50 in contingent resources.
As per the gas sales agreement, Engie will buy gas produced from the Ana and Doina gas reservoirs over a minimum period of 10 years in accordance with Romanian law.
According to BSOG, the expected contractual volumes upon completion of the offshore gas project represent 0.5 bcm per year. The gas from the two fields will be delivered at Vadu entry point into the National Natural Gas Transmission System from Romania.
Engie’s global energy management business unit CEO Edouard Neviaski said: “ENGIE is proud to support the MGD Project partners and we look forward to managing the first gas production from the Black Sea, a very exciting new source in Romania.
“The MGD project gas can be stable long-term source of supply for the development of ENGIE’s position in Romania and the region and we strongly believe that this would enhance Romanian security of supply for years to come.”
The MGD Project features five production wells, out of which one is a subsea well at the Doina field while the remaining four are platform wells at the Ana field.
The project will also have a subsea gas production system over the Doina well which will be linked via an 18km pipeline with a new unmanned production platform located over Ana field. Further, a 126km gas pipeline will connect the Ana platform to the shore and to a new gas treatment plant, said BSOG.