Black Sea Oil & Gas signs the Gas Sales Agreement with ENGIE for natural gas supply from the MGD Project

Black Sea Oil & Gas SRL (“BSOG”) together with its co-venture partners, Petro Ventures Resources SRL (“Petro Ventures”) and Gas Plus International B.V. (“Gas Plus”), are pleased to announce the signing of the Gas Sales Agreement (“GSA”) with ENGIE through its subsidiary Engie Energy Management Romania S.R.L. (“Engie”) for natural gas supply from the Midia Gas Development Project (“MGD Project”). Under this agreement, which is subject to Final Investment Decision, ENGIE will purchase gas from the Ana and Doina gas reservoirs over a minimum period of 10 years in compliance with Romanian law. Expected contractual volumes at project completion represent 0,5 bcm per year. The gas will be delivered at Vadu entry point into the National Natural Gas Transmission System from Romania. The MGD Project consists of 5 production wells (1 subsea well at Doina field and 4 platform wells at Ana field) a subsea gas production system over the Doina well which will be connected through an 18 km pipeline with a new unmanned production platform located over Ana field. A 126 km gas pipeline will link the Ana platform to the shore and to a new Gas Treatment Plant. Black Sea Oil & Gas CEO, Mark Beacom, commented: “We are delighted to have secured this important agreement for the sale of our gas. BSOG is working steadily towards achieving all the remaining milestones on the project required to reach FID such that a decision can be taken on whether to approve FID. The assessment of the Offshore Law on the project’s economic viability remains a key part in determining whether a favorable decision to FID will be taken.” Edouard Neviaski, CEO of ENGIEs Global Energy Management business unit stated: “ENGIE is proud to support the MGD Project partners and we look forward to managing the first gas production from the Black Sea, a very exciting new source in Romania. The MGD project gas can be stable long-term source of supply for the development of ENGIE’s position in Romania and the region and we strongly believe that this would enhance Romanian security of supply for years to come.”

(www.blackseaog.com, November 20th)