Romanian Auth ANRM Declassifies Initial Deal On Black Sea Lease

The contract had a 25-year term, including the exploitation period, with an initial exploitation period of 5 years.

In 1992, Rompetrol oil company, representing at that time the Romanian authorities, and a consortium made up of Enterprise and Canadian Oxy companies sealed an exploration deal.

Subject to the contract, the crude oil was distributed in a 45% share to Rompetrol and a 55% share to the consortium. The article on the distribution of crude oil production was strictly classified.

The deal was taken over afterwards by Paladin company and transferred in 1997 to Sterling Resources. In 1993 Rompetrol was privatized and its place in the Sterling deal has been taken by ANRM.

The lease in the Black Sea, granted by the Government in 1992, was extended, successively, by all Romania’s Governments, the decision of the latest Tariceanu Government of November 2008 not changing the content of the agreement.

Early February, Romania’s Prime Minister Emil Boc announced the declassification of the appendix signed in November 2008 to the contract sealed in 1992 by ANRM and Sterling Resources.

According to Boc, the contract stipulates that Sterling Resources will execute only exploration oil operations on blocks XIII Pelican and XV Midia in the Black Sea area that is to be delimitated between Romania and Ukraine, until the final decision of the International Court of Justice at The Hague. After the Court’s definitive and irrevocable decision, Sterling Resources has the right to execute exploitation oil operations in the respective areas.

The appendix of the oil-drilling contract closed between ANRM and Sterling Resources refers explicitly to the dispute between Romania and Ukraine, specifying that the exploration right will become an exploitation one after The Hague Court’s decision.

The International Court of Justice at The Hague drew on February 3 a new maritime border between Romania and Ukraine, settling a 40 year-old dispute.