Romanian PM Victor Ponta said that the government wants to hike the oil and gas extraction royalties before end-2014 and will start negotiations on the issue with Austria's OMV - the majority owner of local oil company OMV Petrom, Ziarul Financiar daily reported. The royalties should rise to 20-30%, minister-delegate for energy sector Constantin Nita has said recently. Currently, the royalties are 3.5-13.5%, depending on the yield of the well. Royalties for gas and oil are supposed to remain flat by the end of 2014, under OMV's privatisation contract. Ponta's statement on re-negotiations comes after the Romanian government charged a 60% tax on the supplementary revenues derived by the companies from the sector thanks to the gas price liberalisation. The tax is enforced by the end of 2014 - and it seems to be a temporary replacement for higher royalties. OMV Petrom produces nearly 5bn cubic metres of gas per year - a half of the country's output. The remaining domestic output is produced by state-controlled Romgaz, plus some much smaller independent oil and gas companies. |
Romania's government has earmarked RON 163mn (EUR 37mn) worth of subsidies for 2013 under a programme aimed at closing down the loss-making mines of local company CNH located in the southwestern ... more
Romanian state-controlled hydropower company Hidroelectrica sold on Thursday, March 21, in several separate contracts a total of 0.3TWh of baseload electricity deliverable between April 1 and the ... more
The Romanian government will publish the privatisation call for freight railway company CFR Marfa immediately after the consultants complete their work, probably on April 6-8, Romanian transport ... more