“We are here to help Romania get back to work”, said Stephen Birrell, the president of the Romanian Association of Oil Exploration and Production Companies – ROPEPCA, at EnergynomicsTalks, on the 16th of June. “Everything we advocate for is about helping the economy grow and we hope to continually engage with the stakeholders to do that”, he concluded the conversation on the measures ROPEPCA proposed for supporting the petroleum industry and relaunching the economy after the Covid-19 pandemic impact.
The key towards economic recovery is efficient and stimulating Government regulation, aimed at securing large investments, in capital intensive sectors of activity, like the Upstream industry, ROPEPCA insists. The Association has 4 sets of measures needed for a resilient and stronger petroleum industry.
Openess to business
- Consultations with the industry for understanding the implications
- The revision of those provisions of GEO 27/2020 that jeopardize investment
- Streamlining permitting and authorization processes, in relation to petroleum operations
Adapted operations
- Suspension of operational deadlines and under concession agreements
- Common understanding on the Force Majeure application and evidence
- Revision of insolvency and labour legislation, for adapting to crisis situations
Liberal Market Mechanisms
- The repeal of the Central Market Obligation to trade for market participants
- The removal of the windfall tax applied to supplementary incomes for natural gas sold on the free markets
- Reference pricing related to local market conditions
- Free market pricing
Fiscal stimulus
- Deferrement of taxes and royalties payment
- Fiscal facilities, including CAPEX deduction, stimulations for abandonment works, state guarantees