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Petroleum agreement between Canada's Sterling and ANMR, a 30-year contract with extension option

The petroleum agreement between the National Agency for Mineral Resources (ANRM) and Canada's Sterling Resources Ltd. spans 30 years, with an extension possibility by another 15 years, as provides the Petroleum Act, states Amendment No. 11 to the contract, which was declassified under a Government Resolution and published by ANRM.

According to the Amendment, the initial exploration period was suspended on Dec. 5, 2003 due to the dispute between Romania and Ukraine concerning the delineation of the Black Sea continental shelf, until resolution of the dispute by the International Court of Justice (ICJ).

Upon resumption of petroleum operations, the exploration period will continue for five contractual years for each of the surfaces subject to the contract.

The titleholder Sterling Resources has the right to extend the exploration period by two additional periods of three years at the most.

Sterling Resources retained 2,387 sq.km of the total acreage of 4,168 sq.km of the sea block XV Midia and 2,032 sq.km of the initial acreage of 2,980 sq.km. of sea block XIII Pelican.

The coordinates can be modified, with the Agency's approval, for structures to be taken in consideration that stretch beyond the contractual surface, provided that they are not subject to another contract with a different party.

The titleholder is obliged to pay the state petroleum royalties representing a specified quota of the gross production from the exploitation of petroleum and/or condensate.

Royalties for the gross petroleum production stand between 3.5 and 13.5 pct of the gross production, depending on the amount thereof. Royalties for the gross production of natural gas stand between 3.5 and 13 pct.

Until the delivery of the ICJ judgment on the delineation of the Black Sea continental shelf, Sterling Resources only had exploration rights, after judgment delivery it also has exploitation rights.

Sterling Resources is a Canadian company having its head office in Calgary, Alberta. Sterling is conducting petroleum operations in the United Kingdom, France and Romania.In Romania, the company is represented by Midia Resources. According to the National Agency for Mineral Resources, the rights over these blocks were not offered to Midia Resources in November 2008, but arise from petroleum agreements signed as early as 1990 and that came in force in 1992. The petroleum contact was signed with Enterprise Co. and the rights were successively transferred to Paladin and then to the current titleholder, Sterling.

The judgment passed on Tuesday by the International Court of Justice in The Hague recognizes Romania's sovereign jurisdiction and rights over 9,700 square kilometers of continental shelf and exclusive economic zone, that is 79.34 percent if the 12,000-square-kilometer area subject to dispute with Ukraine, said Bogdan Aurescu, Romania's Agent in this proceeding.

ANRM is the authority competent for taking over under administration Romania's hydrocarbon reserves including those that might be found in the Black Sea continental shelf, close to the Serpents' Island. ANRM, which stands under the government's authority, will be able to concession the hydrocarbon reserves in the area.

 

Sursa: http://www.rompress.ro

Tags: petroleum rights resources sterling between contract

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