Romania Must OK Any Transfer Of Rights In Canada’s Sterling Deal

According to the contract, Sterling will pay the dues for the crude oil extracted out of the two blocks in the Black Sea.

The petroleum agreement for blocks XIII Pelican and XV Midia was executed on August 6, 1992, pursuant to the Law no. 64/1992 concerning the grant of facilities in order to attract foreign capital in the sector of exploration and production of crude oil and gas reserves, and was approved by Government Decision no. 570 of 1992. The petroleum agreement was awarded based on an international tender and is a contract at the titleholder’s sole risk and cost. Sterling became a party to the petroleum agreement effective April 1, 1997 and is currently recognized as the titleholder under the petroleum agreement.

The contract signed between ANRM and Sterling for the two blocks represents now an oil and lease agreement, with the payment of some dues, Romania’s Prime Minister Emil Boc said Thursday.

The changes were made due to amendments to the Fiscal Code, Environment Law and Oil Law, and also to avoid an interest conflict.

Sterling will pay the Romanian state quarterly oil dues of 3.5% to 13.5% of the gross production of crude oil and gas, according to the production volume calculated based on the reference prices set up by ANMR. For the extraction of natural gas, the Canadian company will pay dues of 3.5% to 13% of the gross production value.

In case of delays of over six months in paying the oil dues, the agency may annul the agreement.