- within Intellectual Property, Immigration and Environment topic(s)
October 2025 – On 8 October 2025, the National Regulatory Authority for Mining, Petroleum, and Geological Storage of Carbon Dioxide ("NAMR") has launched for public consultation a draft bill for amending and supplementing the Petroleum Law no. 238/2004 (the "Draft Law") (Romanian version available here). Comments to the Draft Order may be submitted to NAMR by 17 October 2025.
Context and main provisions of the Draft Law
The Draft Law hints at strategic changes contemplated with regard to concession agreements in Romania. The statement of reasons for the Draft Law highlights the need to revisit the existing framework to ensure adequate financial coverage for restoration and environmental compliance, as well as securing guarantees for the fulfilment of the minimum exploration program works. Additionally, the Draft Law acknowledges that concessions of transmissions system and petroleum terminals can be granted to private operators, potentially leading to increased royalties for the state.
Financial guarantees for titleholders – the highlight of the Draft Law is the introduction of two separate financial guarantees that concession holders must provide:
- Guarantee for environmental restoration – this ensure the compliance with the restoration and environmental compliance, including land rehabilitation and return to agricultural forestry use.
- Guarantee for fulfilment of the minimum program works – this ensure the fulfilment of obligations under the minimum exploration program that remain unfulfilled at the time the concession agreements are relinquished. Due to ambiguities in the Draft Law, there is a risk of interpretation that NAMR may enforce the full value of non-fulfilled works, regardless of the titleholder's fault.
Regarding ongoing agreements, it is currently unclear whether the new provisions of the Draft Law will apply to existing concession agreements once it comes into force. The final version of the Draft Law and related transitory norms may provide further clarity on this matter.
Concession of transmissions system and petroleum terminals to private operators - The Draft Law introduces new definitions regarding petroleum terminals and transmission systems that are privately owned, enabling the conclusion of concession agreements with private entities holding such assets, who will, in turn, pay royalties to the state.
Further developments of the Draft Law, as well as complementary legislation will remain extremely relevant to follow.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
