raport de activitate fppg 2022

ACTIVITY REPORT 2022 – OIL AND GAS EMPLOYERS FEDERATION

151 LETTERS

  • 151 Letters – Sent to more than 25 different stakeholders, national and European authorities and public institutions
  • 82 position letters developed by FPPG designated experts from member companies on priority topics addressed to national and European authorities

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studiu cpag 2023 - fppg

The Contribution of the Oil & Gas Industry to the Romanian Economy 2022

The role of the oil gas sector in Romania has been exponentially increased since the beginning of this decade The scientific approach used by Ec. Dr. Laurian Lungu to highlight the direct economic dimension of this sector in the context of the Romanian economy needs no further elaboration and points out how crucial this industry is becoming.

The total impact of our industry in the economy (i.e., including direct, indirect, and induced effects) is more than significant, increasing from 3.1% of GDP in 2020 to 4.1% of GDP in 2021 and approximately 8% of GDP  only in the first half of 2022. The above figure underestimates the true impact of the sector in the economy, given that some of the companies were not part of the survey. Apart from the increase due to economic recovery after pandemic and the effect of sustained investments during the last 10-15 years, a significant part of this gain is attributed to the rise in oil and natural gas prices all over the world. However, the positive impact on the economy by oil and gas sector in Romania facilitated new instruments built by the state in order to alleviate the numerous symptoms of a complicated decade from multiple perspectives.

The need for this sector in difficult times has been proven with historic recurrence since its beginning. The energy crisis was perceived as a more serious threat than anything else by a significant number of Europeans, while Romanians already had schemes of compensation that were financed through the taxation of this sector. The threats to the security of supply and blockages in weak energy mixes are, fortunately, not significant concerns for Romania at this moment due to its local production of oil, but most importantly, natural gas.

Natural gas is arguably the most important energy source now, playing a significant role in maintaining the security of supply for most countries around the world. The popularity of natural gas as a fuel source is due to its clean burning characteristics, affordability, and versatility. Thus, the security of supply of natural gas is critical for ensuring the reliability and availability of the European economy. A secure natural gas supply provides predictability, consistency, and can meet the public and industrial demands of its users without disruptions. This can be achieved through a combination of factors such as a robust and flexible infrastructure, reliable supply sources, and many other aspects that are part of our constant dialogue with the authorities.

We hope to see that Romanian production will only increase in the next years, especially through offshore and deep onshore projects that will consolidate this country’s role in the new energy security architecture of its region. Through this industry, Romania has the potential and responsibility to make a greater impact in reshaping eastern European security in all its dimensions and improving the living standards of Romanians. This is mainly done through taxes from major contributors of this industry, which are a vital source of revenue for Romania, providing the resources necessary to fund public services, promote economic growth, reduce income inequality, pay for government debts, and foster social stability.

This study reconfirms that the natural gas industry remains a strategic sector for Romania. We assure you that we understand our role well and we remain aware of the expectations that concern us, which we want to honor in the future, defending the interests of Romanians, today and in the future. Our involvement is not limited to the economic contribution we make every year, but we want to continue to be a solid and real teammate, a provider of energy security and balance, both in the context of the geopolitical turmoil we are going through and in the context of the transition to decarbonisation. For over 150 years, without ceasing, we remain a pillar of stability and partnership in our country.

In closing, we assume a clear message: we are here to build the future together with all those who believe in Romania.

Signed by
FPPG Board

The Contribution of the Oil & Gas Industry to the Romanian Economy (3rd edition, revised and extended) – July 2023

The Contribution of the Oil & Gas Industry to the Romanian Economy

analiza regim fiscal gaze petrol romania pwc - fppg

Analysis of the specific fiscal regime applied to the oil and natural gas sector in Romania

The accelerated increase in natural gas and electricity prices starting in the second semester of 2021, with a significant impact on inflation, has led to a number of intervention and consumer support measures across the member states of the European Union (EU).

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comunicat de presa 28 decembrie 2022 - fppg

Emergency Ordinance regarding some measures to implement Council Regulation (EU) 2022/1854 of October 6, 2022

PRESS RELEASE

The new oil and gas sector overtaxation project endangers future investments for Romania’s energy security

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rigc 2022 fppg featured

RIGC 2022: Europe’s solutions for the energy security and climate crisis, analyzed in Bucharest

September 19, 2022. More than 60 top experts from the industry and prominent representatives at the level of governments, European institutions, and regulatory authorities in the field of energy will gather in Bucharest, between September 21-22, at the 5th edition of the Romanian International Gas Conference (RIGC 2022), annual benchmark event organized by the Oil and Gas Employers’ Federation (FPPG). This year’s edition, which will be held under the theme “Bridge To The Future: From Versailles to Bucharest – Natural gas, the bridge between climate action and energy security”, is held under the High Patronage of the Ministry of Energy and in partnership with the International Association of Oil and Gas Producers (IOGP). In times of energy security challenges, generated by the war in Ukraine and the climate crisis, and ahead of what is expected to be a difficult winter in terms of energy supply, experts will seek to provide solutions that strike the right balance between ensuring the security of energy supply and achieving the ambitious target of net-zero carbon emissions by 2050.

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comunicat ziua petrolistului 2022 - fppg

On Oilman’s Day, we celebrate more oilmen in the FPPG family with the addition of FPPG’s newest member, Stratum Energy

On the occasion of Oilman’s Day, FPPG has the honor to once again thank the tens of thousands of people dedicated to this industry, with whose effort and responsibility the beautiful story of hydrocarbon development in Romania is still being written.

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vot ue taxonomie - fppg

FPPG welcomes the EU Parliament’s vote on the new taxonomy for sustainable investment, which argued that natural gas should be included in the taxonomy and therefore considered sustainable by investors.

A majority of 328 members of the European Parliament in Strasbourg voted last week against the European Commission’s objection regarding the delegated act on the Regulation of the taxonomy and therefore in favor of classifying nuclear energy and natural gas as sustainable. Until now, natural gas had been excluded by most sustainable investors, which has contributed to deepening the EU’s dependence on Russian gas, a situation that has become unacceptable following the escalation of aggression in Ukraine.

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comunicat legea offshore fppg aprilie 2022

FPPG welcomes the governing coalition’s initiative to reintroduce Offshore Law in parliament, essential requirement for Romania’s energy security

The Oil and Gas Employers Federation (FPPG), an organization that brings together the main producers of natural gas, which covers over 98% of domestic production, welcomes the reintroduction of the Offshore Law in the parliamentary circuit. This first step is essential to ensure the competitiveness and stability of the fiscal regime while respecting the mechanisms of a free gas market, and which, if implemented, would allow the start of strategic investments in the production of Black Sea resources. Unlocking these legislative changes is indispensable not only for Romania’s energy security, but also for the regional one, especially in the new context of sanctions against Russia. FPPG members are currently assessing the proposed amendments, both those discussed for a long time in the public space, as well as novelty elements and their impact on natural gas developments in the Black Sea. FPPG’s consolidated position will be outlined in the near future.

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comunicat de presa 17 februarie 2022 bsog - fppg

FPPG becomes the voice of Black Sea concession holders after Black Sea Oil & Gas, the new-est member, joined the federation

The Petroleum and Gas Employers’ Federation is pleased to announce that its members have received Black Sea Oil & Gas SA (BSOG), one of the most important companies in the Romanian offshore sector. Therefore, FPPG continues its consolidation, even in 2022, completing the entire picture of the Romanian upstream sector both onshore and offshore. The natural gas in the Black Sea is closer to use thanks to BSOG, whose recent accession honours all members of the federation.

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