Global investment firm Carlyle and the European Bank for Reconstruction and Development (EBRD) announce that they have reached an agreement for the sale of Black Sea Oil & Gas and BSOG Holding Activity-the largest offshore natural gas producer in Romania-to Mazarine Energy. The transaction is subject to the receipt of necessary regulatory approvals.
With the support of Carlyle as a shareholder, BSOG-acting as operator on its own behalf and on behalf of its concession partners-oversaw investments exceeding $400 million in the Midia Gas Development (MGD) project. This initiative represents the first offshore hydrocarbon production project developed in the Romanian sector of the Black Sea in over 30 years. The project encompassed the development of the Ana offshore production platform, a 126 km subsea pipeline, and a new gas treatment plant at Vadu. Since production began in June 2022, BSOG has supplied approximately 12% of Romania”s domestic natural gas requirements, contributing to the country”s energy security during a critical period for European energy markets.
Upon completion of the transaction, Mazarine Energy-an established European energy company with an already solid operational presence in Romania-will become the new shareholder of BSOG. BSOG will continue to operate the MGD project, ensuring business continuity as the company enters a new phase of development. Carlyle”s investment in BSOG over more than a decade-complemented by support from the EBRD since 2017 and the subsequent transfer of the stake to Mazarine-reflects the sustained confidence of international investors in Romania”s energy sector and its capacity to attract long-term international capital for strategically important energy assets.
“The commencement of natural gas production from the MGD project in 2022 was made possible by the determination and perseverance of the BSOG team, as well as the long-term commitment, significant investments, and robust support provided by Carlyle and the EBRD. We look to the future with confidence as BSOG continues its operations in Romania alongside our new shareholder, Mazarine-a partner well-positioned to further contribute to strengthening Romania”s energy security,” said Mark Beacom, CEO of BSOG.
“When Carlyle acquired BSOG in 2015, the company was still in the exploration phase. Over the last decade, BSOG has become the leading offshore natural gas producer in Romania and a key player in securing the domestic natural gas supply. The company”s evolution demonstrates how private equity investments-driven by a long-term perspective and investment discipline-can support the development of complex offshore infrastructure projects. We are pleased to transfer BSOG to Mazarine, a company that shares our long-term commitment to Romania and its energy sector,” added Bob Maguire, Co-Head of Carlyle International Energy Partners (CIEP). Guido Funes Nova, Director of CIEP, stated: “Given the significant resources that can be further developed, the potential for carbon capture and storage (“CCS”) projects within the Midia perimeter, and the pipeline of biomethane projects currently in preparation, we believe that BSOG possesses a solid foundation for long-term development-a foundation supported by the expertise and operational capacity demonstrated by its team.”
Edward van Kersbergen, CEO of Mazarine Energy, added: “Romania has been central to Mazarine”s operations since 2017, and we are proud to strengthen our presence in this market through the acquisition of BSOG. The MGD project represents a major achievement for Romania”s energy security, and we are committed to building upon the successes of the BSOG team and continuing to contribute to meeting the country”s energy needs in the years to come. We thank Carlyle and the EBRD for their trust, and we look forward to working with the BSOG team, our partners, and the Romanian authorities.” Victoria Zinchuk, EBRD Regional Director for Romania, Bulgaria, and Greece, stated: “The development of BSOG and its transformation into the largest offshore natural gas producer in Romania is a remarkable achievement. Since the EBRD”s investment in 2017, the company has successfully brought significant offshore resources into production, contributing to the diversification of supply sources and the strengthening of Romania”s energy security. This project demonstrates how long-term investments can support private sector development while simultaneously generating benefits for the economy as a whole.”
Jefferies acted as financial advisor to Carlyle for this transaction.