Black Sea Oil and Gas (BSOG) is set to proceed with its $400m Midia Gas Development Project (MGD Project) off the Black Sea shore in Romania, following approval of the final investment decision.
The company will extract gas at the project with its co-venture partners Petro Ventures Resources and Gas Plus International.
Petro Ventures owns a 20% stake in the MGD Project, while Gas Plus holds a 15% interest.
The MGD Project comprises one subsea well at Doina field and four platform wells at Ana field, featuring a subsea gas production system, which will be linked through an 18km pipeline with a new unmanned production platform located over Ana field.
Ana platform will be connected to the shore and to a new onshore gas treatment plant (GTP) in Corbu commune, Constanta county, through a gas pipeline that is 126km long.
Black Sea Oil and Gas CEO Mark Beacom said: “Together with our joint venture partners, we very much appreciate all the help we have received along the way from the many Romanian institutions, contractors, Transgaz, and our community of Corbu, which were vital for reaching this critical milestone of FID.
“We look forward to building and operating this game-changing project for Romania’s energy industry.”
BSOG has signed a long-term gas sales agreement with Engie’s Romanian subsidiary.
A gas transmission contract was signed with Transgaz for the transportation of the MGD Project production into the National Transmission System for a 15-year contractual period.
The company signed an EPCIC contract with GSP Offshore for the complete project infrastructure, including construction, installation and commissioning of all offshore and onshore facilities.
Delivery is expected to take place in the first quarter of 2021.
GSP will also perform the development drilling of the five production wells using its Uranus jack-up rig.