Deputy Finance Minister Dan Manolescu announced on Monday that the Romanian government is planning to change the royalty taxes for players in the oil and gas industry.

Romania to revise royalty scheme

Romania

BUCHAREST, May 26, 2015 – Deputy Finance Minister Dan Manolescu announced on Monday that the Romanian government is planning to change the royalty taxes for players in the oil and gas industry. A draft bill will be sent to parliament in September outlining the changes.

The planned tax regime will impose different royalties depending on whether an operation is onshore or offshore and will only be in implemented for new contracts.

Romania has several energy resources, particularly gas and coal. The new system is aimed at increasing the royalties to generate more revenue for the country, which is the poorest in the European Union. “We aim that revenues collected under the new system are at least as high as current ones,” Manolescu said at an energy seminar.

According to the amount of oil or gas taken from any area, operators owe royalties between 3.5 and 13.5 percent of production. Laws regarding royalties in the country have been the same since 2004 when the oil and gas group Petrom was privatised.

A tendering process for 36 new concessions will follow once the law passes through parliament according to Romania’s mineral resource agency.