Bucharest, 4th December 2020: The Romanian Petroleum Exploration and Production Companies
Association (ROPEPCA) announces that it considers beneficial and necessary the promulgation of the normative act for the amendment and completion of the Mining Law no. 85/2003, reason for which congratulates all the parties involved, noting at the same time the opportunity of a congruent approach for the Petroleum Law no. 238/2004.
Among the most beneficial changes, we highlight the undeniable benefits for local communities by the fact that 80% of the mining royalty obtained from the exploitation of surface resources and carbonated or non-carbonated mineral waters will be constituted as revenue to the budget of local authorities. “We believe that a similar approach to rethinking the royalties of the oil and gas sector could significantly benefit local budgets at a time when there will be a growing need for people to feel more and more directly the benefits of this industry as a part of their communities,” the president of the association, Spencer Coca, underlined.
Thus, from oil and gas production, a share of the royalty can be ensured in similar terms, which can be an important source of income in order to finance the rehabilitation works of communal and county roads, even to ensure co-financing quotas for projects with non-reimbursable funding, many of them aimed at restoring or protecting the natural environment. The industry we represent could more clearly demonstrate the beneficial role it has in the areas where it operates.
Moreover, according to the law, the Government must initiate a draft law amending the Mining Law by July 1, 2021, to change the organizational and operational structure of the National Agency for Mineral Resources in order to change its status from agency to national regulatory authority in the field of mineral resources and oil, according to the Law for amending and supplementing the Mining Law no. 85/2003.
“Changing the organizational and operational structure of the National Agency for Mineral Resources in order to modify its status from agency to national regulatory authority in the field of mineral and oil resources is a natural and correct step in consolidating the regulator of this sector, marking the healthy evolution. Although we still have to wait before starting to work for the growth of the industry directly with the new authority, we express our enthusiasm in advance, and I would like to cordially congratulate the whole development,” added ROPEPCA’s President, Spencer Coca.
ROPEPCA reiterates that the recovery of the economy damaged by the Coronavirus pandemic can only be achieved by stimulating major investments. Thus, in order to stimulate investments, the legislation of the oil and gas sector must aim at optimizing and streamlining the way in which this industry carries out its activity on Romanian territory.
2. About ROPEPCA
Since its establishment in 2012, the Romanian Petroleum Exploration and Production Companies Association (“ROPEPCA”) is an active promoter of the petroleum industry, in order to support the development, diversification and competitiveness of the industry. ROPEPCA reunites the most active companies in the industry, concession agreements titleholders, bringing to Romania significant foreign investments, as well as companies that provide support for upstream operations.
Currently, ROPEPCA members hold most of the petroleum concession agreements for the onshore development and production blocks in Romania, representing for the years 2014-2018 cumulated investments of more than RON 24 bn, contributions to the state budget of RON 50 bn, and the creation and maintenance of 14,000 jobs.
The members of the Association emphasize the strategic benefits of strengthening energy security at national and regional levels and supporting the increase of the national economy. These can be achieved through a predictable, stable and competitive legislative and fiscal system for the upstream industry.
Alin Popescu, Executive Administrator
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