How State earns royalties?

"In 2012, the Romanian state has received royalties totaling 1.4 billion lei (315 mln. Euro) so 1.19 billion RON (267 mil. EUR) the equivalent of royalties collected under the Petroleum Law, 216 million RON (48 mil. euros) represents consideration received royalties under the Mining Act. In 2012 OMV Petrom paid royalties amounting to 814.93 million RON (183 mil. Euro) and Romgaz worth 205.42 million lei (46 mln. Euro), "said Duţu. Thus, 85% of all oil and gas royalties collected by the state from Petrom and Romgaz income.

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Last year in Romania Petrom extracted 62.4 million barrels of oil and gas, the average price per barrel achieved at group level being $ 94, according to the company's 2012. This average price is the price at which the extracted oil to the refinery Petrom starts.

Of this total production, 28.7 million barrels were oil production, gas production remainder (5.16 bln. Cubic meters). If the international oil price there is for calculating royalties on gas price with local producers who sell quantities drawn and regulated assessing production last year was worth 143 dollars per thousand cubic meters, 3 times lower than the imported.

"If we have a quoted international oil to which we refer to calculate royalties, gas Romania has a market linked to international prices, so the fee is calculated automatically at the regulated price," explains Alexander square, the former president of NAMR, how the calculation of royalties.

What gives each?

Petrom oil production was about 2.7 billion. $ (2.1 bn. Euro) and gas production amounted to 737.8 mil. $ (562 mil. Euros). For total production of 2.6 bln. Euro Company paid 183 mln. Euros in royalties, i.e. about 7% of production will-Loire. Thus, from $ 94 a barrel Petrom has turned to the state budget by $ 6.5 royalties for oil and gas.

Romgaz had last year gas production of 5.6 billion cubic meters. The average price for domestic production was 143 dollars per thousand cubic meters. That means that the Romgaz gas production was about 800.8 million dollars (623.4 million euros).

On account of this production by the Romanian Romgaz paid a fee of 46 million euros, or 7% of the production value. Basically, if Romgaz receives 143 dollars per thousand cubic meters extracted, the state pays only $ 10 royalty.

The two companies, Petrom and Romgaz, veered to the Romanian state as royalty in 2012 about one billion lei (230 million euros), but oil and gas extracted aggregate value of 3.3 billion euros which is the percentage 7%.

NAMR has not submitted data differentiated royalties earned from the production of oil and gas, but from the fact that Petrom and Romgaz gas production similar that the level of royalties for gas extracted can be about equal.

According to this reasoning, Petrom royalties paid last year about 140 mil. Euro only for oil production. Petrom extracted in Romania last year 28.7 million barrels of oil. https://www.flickr.com/photos/129144736@N08/20349389438/in/dateposted-public/

The average price achieved at group level production value was about 2.7 bln. $ (2.1 bn. Euro). The fee paid is 6.6% of the production value and means that a $ 94 barrel of oil collected by the Romanian state about $ 6 fee, according to ZF calculations.