Carlyle Group to sell its Romanian Black Sea offshore natural gas producer

Carlyle Group Sells Black Sea Offshore Gas Producer BSOG to Mazarine Energy

Key Details and Background of the BSOG Sale

Sale Announcement and Parties Involved

BUCHAREST, Oct 29 (Reuters) - Private equity firm Carlyle Group and the European Bank for Reconstruction and Development will sell their Romanian offshore natural gas producer Black Sea Oil & Gas (BSOG) to Mazarine Energy, BSOG said on Thursday.

BSOG and Carlyle did not disclose the sale price.

BSOG’s Role in Romania’s Energy Sector

Offshore Gas Project Launch

BSOG launched Romania's first offshore Black Sea gas project in three decades in 2022, which accounts for about 10% of Romania's gas consumption. 

The launch happened months after Russia invaded neighbouring Ukraine during a critical period in European energy markets.

International Investment and Confidence

"Carlyle's investment in BSOG ... together with the EBRD's support and the transition of ownership to Mazarine reflects continued international investor confidence in Romania’s energy sector and its ability to attract long-term international capital into strategically important energy assets," BSOG said.

The sale is pending regulatory approval.

Company Histories and Market Context

Background of BSOG, Carlyle, and Mazarine Energy

Carlyle founded BSOG in 2015 and brought in the EBRD with a 10% stake two years later. Mazarine Energy, a former Carlyle project, operates oil and gas assets in Tunisia, Romania and the Netherlands.

Romania’s Domestic Gas Production

Unlike other European states, Romania does not rely on Russian gas, producing most of its needs domestically through OMV Petrom, state-owned Romgaz and BSOG.

Neptun Deep Project and Future Outlook

OMV Petrom and Romgaz are building offshore gas project Neptun Deep in the Black Sea, which they and the government expect to start producing in 2027 and to make Romania the largest gas producer in the European Union and a net exporter.

Geopolitical and Security Considerations

Regional Security Challenges

The EU and NATO state shares a 614-km (382-mile) land border with Ukraine and has repeatedly reported Russian drone incursions into its airspace since Moscow's full-scale invasion of Ukraine in 2022, as well as mines floating in the Black Sea across key trade and energy routes.

Romanian fighter jets have destroyed marine drones floating near Neptun Deep this year. 

Reporting Credits

(Reporting by Luiza Ilie; Editing by Emelia Sithole-Matarise)