Taxation for Romanian Oil and Gas industry rose, while the international prices in the same industrial area have collapsed. This is the paradox in the Romanian Oil and Gas industry that had been on everyone’s lips in this sector for some time now.
The average effective rate of the royalties and other taxes imposed on the oil and gas industry in Romania has increased from 15% in 2014, to 16.9% in 2015 and 17.5% in 2016, while in most European states it decreased, local media reads.
The trend observed by the experts at Deloitte manifested within an interval in which the international crude oil price dropped from about 100 dollars per barrel (in 2014) at a minimum of 30 dollars per barrel, in 2016, to return at a constant price this year.
Romania imported in the first six months of 2016 a quantity of crude oil totaling 3.732 million tonnes of oil equivalent (toe), 510.500 toes (15.8%) more than the amount imported in the similar period of last year, according to data centralized by the National Institute of Statistics (INS).
Oil production has totalized 1.804 million toe, being 4.5 percent (84.700 toe) smaller than that of the first semester of 2015.
According to the Energy Strategy project, published on the website of the relevant ministry, the oil reserves of Romania are limited, given that discoveries in the last 30 years can be catalogued as modest – with the exception of some recent signals from the shallow waters of the Black Sea, the tradability of these being still in analysis phase.
Source: Deloitte report on oil and gas markets and Romanian INS..