19.05.2022
THE LAW ON OFFSHORE DEPOSITS - ADOPTED; THIS IS THE MOST IMPORTANT STEP FOR ROMANIA'S ENERGY INDEPENDENCE
The Romanian Parliament's Chamber of Deputies passed the Offshore Reserves Bill.
The Law on Offshore Deposits is the most important step towards Romania's energy independence, Energy Minister Virgil Popescu said.
"Today we voted in the Chamber of Deputies by a large majority of the Offshore Deposits Act. It is perhaps a step - the most important step we are taking towards energy independence. In fact, we can say that once investments in the Black Sea begin, Romania will become independent energy-intelligent; we will produce more natural gas than we consume, and the surplus can be exported," Virgil Popescu told parliament.
According to the minister, Romania could become an energy security provider in the region.
"The law creates stability and predictability, a favorable tax environment and I am confident that it will help investors in their decision to invest. In addition, it protects Romania's national interests - in the event of an energy crisis, we will be able to intervene and redirect gas to domestic consumption, and the law requires control over bilateral agreements… I believe this is a law from which both the state and investors they are winning and we expect that an investment decision will be made ", added Virgil Popescu.
He also said that "no one sells below cost, starting with the principle of good faith."
"Romania benefits from the use rights granted - somewhere around 13 per cent - from an additional turnover tax. Romania benefits from a profit tax on companies, from the jobs that will be created. The state budget benefits from the labor tax and I believe the most important thing: Romania is becoming independent energy-intelligent and we will no longer have problems with natural gas supplies," said Virgil Popescu.
The Chamber of Deputies approved the Offshore Deposits Bill by 248 to 34 votes.
The project aims to regulate a number of measures in the tax regime and the rights to use oil deposits.
