Midia Gas Development

The Midia Gas Development Project (MGD Project) comprises the Ana and Doina gas fields (320 Bcf P50 contingent resources) which were discovered in 2007 and 1995 respectively. Both are of latest Miocene to Dacian age, shallow marine sandstone (shore face) reservoirs, some 120 km offshore Romania, in the XV Midia Shallow area where the water depths are of 70 meters.

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 121 km subsea pipeline will ensure the delivery of the gas from Ana platform to the shore, where a 4.1 km underground pipeline will connect to the new gas treatment plant (GTP). The processed gas will be delivered into the NTS operated by Transgaz at the gas metering station to be found within the GTP.

By the end of 2018, BSOG has completed the necessary offshore activities including the drilling of the appraisal wells, the pipeline route and platform surveys, onshore activities including archaeological surveys and route surveys as well as the engineering studies including the conceptual Engineering and Front-End Engineering and Design. BSOG has also secured a long-term gas sales agreement with a Romanian subsidiary of ENGIE for the entire MGD Project gas production, reduced by the volumes that the producers are currently obliged to sell on the centralized market and a gas transmission contract with Transgaz for a contractual period of 15 years. The entire project infrastructure, including all offshore and onshore facilities, has been contracted to be built, installed and commissioned under an EPCIC Contract with GSP Offshore. The development drilling of the five production wells will also be performed by GSP for which GSP Uranus jack-up rig will deployed.

In February 2019, BSOG’s partners and shareholders have taken the Final Investment Decision in the MGD Project. The project will cost roughly $400mm and all the contracting activities for this project will have, in total, Romanian content of 70%.

In 2019, BSOG anticipates having completed the detailed engineering for the MGD Project, commenced the fabrication of the Ana Wellhead Platform at the shipyard in Agigea, commenced the civil constructions at the GTP site in Corbu and have purchased a number of long lead company items.