Carlyle and EBRD agree to sell Romanian Black Sea gas operations to Mazarine

Global investment firm Carlyle and the European Bank for Reconstruction and Development (EBRD) announced they have agreed to sell Black Sea Oil & Gas and BSOG Holding Activity, Romania’s largest offshore natural gas producer, to Mazarine Energy. The transaction remains subject to regulatory approvals.

BSOG operates the Midia Natural Gas Development (MGD) project, the first offshore hydrocarbon production development in the Romanian sector of the Black Sea in more than 30 years.

Carlyle supported the company as a shareholder, while the EBRD has backed it since 2017. In November 2017, the EBRD acquired a minority equity stake of roughly 10% in BSOG alongside majority owner Carlyle Group, securing a board seat.

BSOG coordinated investments totalling more than $400mn in the project on behalf of itself and its concession partners. Production began in June 2022, with annual output of about one billion cubic metres and estimated total recoverable reserves of 10 billion cubic metres.

The MGD project comprises five production wells: four at the unmanned Ana platform and one subsea well at Doina, connected through an 18km pipeline. Its infrastructure also includes a 121km subsea pipeline to shore and an onshore gas treatment plant at Vadu.

Since production began, BSOG has supplied approximately 12% of Romania’s domestic natural gas needs, contributing to the country’s energy supply amid disruption in European energy markets.

Following completion of the sale, Mazarine Energy, which already has operational activities in Romania, will become BSOG’s new shareholder. BSOG will continue to operate the MGD project, with the companies stating that operations will remain uninterrupted during the ownership transition.

Prior to the BSOG acquisition, Mazarine Energy established a strong onshore footprint in Romania starting in 2017. Operating through its local subsidiary Mazarine Energy Romania SRL, its core assets consist of mature fields and technical services.