Offshore Bill Receives Committee Approval, Lower Chamber Vote Scheduled Wednesday

The Common Industry, Budget and Public Administration Committee gave on Tuesday a positive review to the bill regulating offshore gas exploitation in the Black Sea, with a number of amendments.

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The amendments passed on Tuesday did not change provisions regarding taxing or royalties, keeping the model through which additional income made by investors, as defined by the bill, will be progressively taxed according to the pricing categories applied.

One of the amendments passed by the Lower Chamber state that holders of offshore oil agreements which are ongoing when the bill is enacted will continue to be subjected to the tax regime and production quotas enforced at that point in time, and not by those set by the new bill, for the entire length of the exploitation.

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The amendment led to disagreements between ruling coalition MPs, after ALDE deputy chairman Varujan Vosganian stated that the current provision does not offer sufficient tax guarantees for investors. Social-democrat MP group leader Daniel Suciu replied that his parting did not agree with reverting the provision to a previous form.

Another change brought to the bill lowered the protection area that agreement holders must instate in case of archeological discoveries from 200 meters to 50.

The bill will face a final vote in the Lower Chamber on Wednesday.

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