The chief executive of a 'offshore gas' project said that Romania has hampered further offshore gas exploration by not auctioning new?"blocks" on Tuesday.

There are estimated 200 billion cubic meters of gas in the Black Sea, which will help diversify the supply of the region and wean it off Russian gas.

The last time the Romanian state agency for mineral resources offered offshore exploration blocks was in 2010. The plan to conduct a new auction has been halted for the past five years due to conflicting legal provisions.

Investors' interest in natural gas remains strong despite the fact that Russia's invasion in Ukraine four years ago complicated energy and trade plans on the Black Sea.

Black Sea Oil & Gas (controlled by Carlyle Group LP), a private?equity company, has launched Romania's First Offshore Black Sea Development in Three Decades?in 2022. After winning an exploration tender in 2010, it produces about 10% of Romanian annual consumption.

The company also works on renewable energy projects.

Mark Beacom, BSOG's chief executive, told a conference organized by The Economist that "we would love to continue exploring and producing in the Black Sea as this is a wonderful place."

"It is a huge opportunity for?gas and yet, you can't get a concession. It's a kind of moratorium. We are ready to invest, have the infrastructure and see the opportunity. Yet we cannot get another concession, because it is blocked."

The state agency for mineral resources did not respond immediately to a comment request.

At the same conference on Tuesday morning, Energy Minister Bogdan ivan stated that he would like to attract U.S. firms to future Black Sea Gas?projects.

Neptun Deep is Romania's largest offshore gas project. It's jointly owned by OMV Petrom and Romgaz.

Sources in the industry said that earlier this month Ukraine's Naftogaz was in discussions with OMV Petrom to develop the Black Sea gas field. Naftogaz had discovered "substantial reserves" of offshore gas in the Black Sea prior to Russia's invasion. (Reporting and editing by Alison Williams; Luiza Ilie)

(source: Reuters)