European Bank for Reconstruction and Development (EBRD) has become a minority shareholder in Romanian oil and gas company Black Sea Oil & Gas (BSOG) ahead of Final Investment Decision for its Midia offshore gas development.
BSOG, currently backed by the Carlyle Group, said on Wednesday that the bank will receive one board seat as part of the investment.
The company’s current portfolio is made up of XV Midia Shallow Block and XIII Pelican Block concession in the Romanian Black Sea where it is the operator and holds a 65% interest.
According to BSOG, the transaction marks a significant milestone for the company as it approaches Final Investment Decision in the Midia Gas Development project (MGD).
The project will consist of five offshore production wells, a subsea gas production system, an offshore production platform, a 126 km offshore and onshore gas transmission pipeline and an onshore gas treatment plant.
Marcel van Poecke, Head of Carlyle International Energy Partners, said: “We are excited to welcome EBRD as a fellow shareholder and to working together to address the challenges of taking BSOG to first gas in the coming years.”
Matteo Patrone, EBRD Regional Director for Romania and Bulgaria, added: “With this landmark equity transaction, our intention is to support the development of the private upstream oil and gas company in Romania.
“We are also committed to providing assistance to the Romanian government in further improving the country’s legal and regulatory framework for offshore oil and gas operations and building regulatory capacity for the whole industry.”