An eventual shut down in of
OMV Petrom recieved a sanction from the National Environmental Guard for carrying out at the Midia Processing Plant working point the activity of gas and petroleum transportation via pipelines without having a renewed environmental permit. The sanctions applied are a fine of RON 60,000 and measure to suspend the activity until the environmental permit is obtained.
An eventual shut down in of Midia Processing Plant would lead to a complete halt of the Black Sea production, currently at around 25,000 boe per day. Note that the production division provides more than 10% of Romania’s gas production.
It is important to mention that OMV Petrom challenged the fine and the respective measures in court. Until the court’s final decision, the measure is suspended.
The company states that they are working with the environmental authorities to obtain the renewal of the environmental permit which was up for renewal in December 2018. OMV Petrom applied for the renewal in October 2018, but they note that the process of the authorization renewal is complex and was prolonged more than expected due to additional requests by the competent environmental authority.