Sterling-Exploited Black Sea Blocks Contain Unevaluated Gas Quantity

"There certainly is a quantity of gas there, but an evaluation has not been completed yet. According to the Oil Law in 2004, the development and exploitation works of commercial oil deposits could be performed only for the reserves confirmed by the certified body, namely ANRM, upon the leaseholder’s proposition (e.n. Sterling Resources). The holder draws up the papers on the calculation of the deposits. ANRM has not received yet the papers to calculate the reserves and no reserve has been confirmed yet, upon the holder’s proposition," Maracineanu told MEDIAFAX.

Maracineanu added that according to some forecasts, the Black Sea perimeters allegedly contain 18.2 billion cubic meters of gas, but Sterling has not submitted clear data on that issue. Sterling is entitled to exploit the crude oil and natural gas reserves in blocks XIII Pelican and XV Midia in the Black Sea.

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. The ruling gives Romania 9,700 square kilometers of exclusive economic zone, accounting for 79.34% of the 12,000 sq km disputed surface, an area said to include about 70 billion cubic meters of natural gas and 12 million tons of oil.

The lease in the Black Sea was granted by the Government in 1992 and was extended, successively, by all Romania’s Governments, with the latest extension dating from November 12, 2008.

But 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 decision of the Court in The Hague.

Sterling Resources officials said in 2008 the forecasted reserves amount to 15 billion cubic meters of gas and they could start production in 2011. This represents 83% of Romania’s annual consumption totaling around 18 billion cubic meters of gas.

ANRM submitted Tuesday for government approval a draft normative act on the declassification of the contract sealed in 1992 with Canada’s Sterling Resources for the crude oil and natural gas reserves in the Black Sea.

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