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Midia Gas Development

In terms of reservoirs, the Midia Gas Development project (MGD project) consists of the Ana and Doina gas fields (roughly 300 Bcf P50 reserves) which were discovered in 2007 and 1995 respectively. Both are of latest Miocene to Dacian age, shallow, marine sandstone (delta-tops), biogenic gas reservoirs, some 120 km offshore Romania, in the XV Midia Shallow area where the water depths are of 70 meters.

In terms of facilities, the MGD project consists of 5 production wells (1 well at Doina field and 4 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 GTP. The processed gas will be delivered into the NTS operated by Transgaz at the gas metering station to be found within the GTP.

In terms of facilities, the MGD project consists of 5 production wells (1 well at Doina field and 4 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 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 had completed the necessary offshore activities including the drilling of the appraisal wells, the pipeline route and platform surveys. Onshore, all the lands were acquired, and other major activities were undertaken including archaeological surveys and route surveys as well as the engineering studies including the conceptual Engineering and Front-End Engineering and Design. BSOG had 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 offer on the centralized market and a gas transmission contract with Transgaz for a contractual period of 15 years. A financing undertaking was also put in place with a syndication of lenders. The entire project infrastructure, including all offshore and onshore facilities, had 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.

By the end of 2018, BSOG had completed the necessary offshore activities including the drilling of the appraisal wells, the pipeline route and platform surveys. Onshore, all the lands were acquired, and other major activities were undertaken including archaeological surveys and route surveys as well as the engineering studies including the conceptual Engineering and Front-End Engineering and Design. BSOG had 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 offer on the centralized market and a gas transmission contract with Transgaz for a contractual period of 15 years. A financing undertaking was also put in place with a syndication of lenders. The entire project infrastructure, including all offshore and onshore facilities, had 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 took 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 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 had purchased a number of long lead company items.

In 2020 important milestones were reached including the under-shore crossing (HDD) in Vadu area of the gas pipeline. The HDD operation involved the drilling and pulling of the gas pipeline between the onshore site, under the beach, and out into the sea for 1.5 kms. This was a first in Romania for an under shore crossing out into the Black Sea.

Moving forward to the sea, the offshore pipeline from the shore to Ana platform was run, some 120 km offshore. The laying of the pipeline from the shore to Ana platform location as well as the 18 km pipeline from Ana platform to the Doina well location started in October 2020 and was finalized in late January 2021.

Works at the Gas Treatment Plant were well underway with all concrete foundation having been installed and a steady progress reached. In parallel, the works at the onshore pipeline that will connect the shore pipe with the gas treatment plant in Vadu was started.

The outlook for Q1 and Q2 2021 includes completing the fabrication of the Ana production platform made of the jacket and the topside, the installation of the jacket and topside on Ana location in the Black Sea and drilling of the five production wells. The remainder of the onshore activities is expected to be completed by Q4 2021 with the first production of gas expected to occur in 4Q 2021.