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Amendments to the Offshore Law have been adopted by the Romanian Parliament

By Edwig Ban
The Romanian Parliament adopted yesterday the Law on certain measures necessary for the implementation of oil operations by oil offshore oil perimeter holders (PL-x 33/2018).
According to the new law, operators in the field have to pay a fee and a charge on additional income, which is calculated according to the market price of natural gas; petroleum companies are obliged to trade on the Romanian market at least half of the gas extracted from the Black Sea.
Under Article 18, companies which have offshore oil perimeter offshore oil permits currently in force on the date of entry into force of this law benefit from the level of royalties, percentages of the oil royalties, the gross production thresholds related to these quotas existing at the date of entry into force of this law.
Under Article 19, petroleum companies actually carrying out both extraction and offshore gas sales activities are required to calculate, declare and pay offside tax on extra offshore revenue. This tax is calculated by applying one (or several percentages) of the extra income from the sale of natural gas extracted from offshore perimeters, as determined in the annex that forms an integral part of this law, deducting investments in the segment upstream.
Tax on offshore supplementary income takes into account the reference price established by the National Mineral Resources Agency (ANRM) for the calculation of royalties. Transactions below the reference price are taxed at the reference price.
The percentages for the calculation of the tax shall be calculated on the basis of the gas sales prices of oil offshore oil perimeter holders based on the price grid below, adjusted annually from 1 January 2019 onwards to the annual consumer price index , as follows: a) 30% of the additional income for prices up to 85 lei / MWh inclusive; b) 15% of the extra revenues obtained from prices between 85 lei / MWh and 100 lei / MWh inclusive; c) 20% of the additional revenues obtained from prices ranging between 100 lei / MWh and 115 lei / MWh inclusive; d) 25% of the additional revenues obtained from prices between 115 lei / MWh and 130 lei / MWh inclusive; e) 30% of the additional revenues obtained from prices ranging between 130 lei / MWh and 145 lei / MWh inclusive; f) 35% of the extra revenues obtained from pricing between 145 lei / MWh and 160 lei / MWh inclusive; g) 40% of the extra revenues obtained from prices ranging between 160 lei / MWh and 175 lei / MWh inclusive; h) 45% of the extra revenues obtained from prices between 175 lei / MWh and 190 lei / MWh inclusive; i) 50% of the additional revenues from prices exceeding 190 lei / MWh.
Views: 24 | : | Tags: NATURAL GAS, l offshore, petroleum, Romanian market, Operations, Implementation, Oil, PL-x 33/2018, Black Sea | Rating: 0.0/0
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