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Black Sea Oil & Gas transitions to renewable energy projects through permitting for the first power corridor in the Romanian Black Sea

Bucharest Romania, 04 July 2023

Visual representation of the future power corridor of Black Sea Oil & Gas, Romanian Black Sea

Bucharest, Romania, 04 July 2023: Black Sea Oil & Gas SA and its Midia Gas Development (MGD) partners, Petro Ventures Resources and Gas Plus Dacia, have started the permitting process of a power corridor in the Black Sea along its existing MGD Project infrastructure to connect future offshore wind farms to the Transelectrica national power grid (SEN).

With a designed capacity of 3GW and 126 km in length, this first step concerns the first power corridor permitted in the Romanian Black Sea. Completion of regulatory procedures are currently expected by mid-2024.

MGD Project, with its existing infrastructure, lands and RoWs, is uniquely suited to provide the power corridor to serve offshore wind production and the required reception and SEN connection facilities such as substations and, if required, converters.

Realization of MGD’s power corridor unlocks a key requirement for developing offshore wind power for Romania that will support increased energy security and drive production capacity from renewables, thus contributing to the country reaching the new EU RES production targets.

Mark Beacom, BSOG CEO, commented: “Offshore wind power expectations for fixed installation in the Romanian Black Sea are highly promising. However, one of the biggest challenges of developing an offshore wind farm is trying to secure and then permit a power route from the offshore production facilities to the SEN. These challenges include encountering onshore and offshore highly regulated areas such as environmental protected areas, military zones, tourist areas, archaeological sites and historical monuments, anchorages, harbors, and shipping lanes as well as securing land rights and the social license with the targeted communities, coexistence with fishing activities and the detection and avoidance of UXOs. Our MGD infrastructure has already addressed these matters.”

The first year of gas production in the MGD Project exceeded BSOG’s initial expectations of delivering 1Bcm of gas per year and occurred one month earlier than planned. Tests held in March 2023 for increasing the production capacity proved successful and the company is currently in discussion with the authorities around potentially increasing daily production by up to 25% in Q4 2023.

About BSOG and its joint venture partners

BSOG, owned by Carlyle International Energy Partners and the European Bank for Reconstruction and Development, is a Romanian based independent energy company, targeting offshore development of gas resources in line with the European Union’s Zero Emissions Goal by 2050 by offering natural gas production as a transition fuel and providing vital infrastructure for the ability to develop green energy projects. The company’s portfolio is currently made up by the MGD Project and two production licenses at Ana and Doina gas fields in XV Midia Shallow Concession, Romanian Black Sea, where it is the operator and holds a 70% interest. BSOG operates the Concession on behalf of its partners Petro Ventures Resources SRL (20% interest) and Gas Plus Dacia SRL (10% interest).

Gas Plus is the fourth largest producer of natural gas in Italy active in the main sectors of natural gas industry, particularly in exploration, production, purchase, distribution and sale to retail customers. At 31 December 2022, the Group had 42 exploitation concessions located throughout Italy, a total of approximately 1,800 kilometres of regional distribution and transportation network in 40 municipalities, serving a total of approximately 57,000 end users, with a staff of 145 employees. Gas Plus holds 10% interest of the MGD Project and two production licenses at Ana and Doina gas fields in XV Midia Shallow Concession.

Petro Ventures, a private investment group, holds 20% of the MGD Project and two production licenses at Ana and Doina gas fields in XV Midia Shallow Concession.

For further information:

visit www.blackseaog.com

or contact:

ana-maria.pericleanu@blackseaog.com

Tel: +40 21 231 32 56

Ana-Maria Pericleanu