Carlyle Group to sell its Romanian Black Sea offshore natural gas producer

By Reuters News

- Private equity firm Carlyle Group CG.O and the European Bank for Reconstruction and Development will sell their Romanian offshore natural gas producer Black Sea Oil & Gas (BSOG) to Mazarine Energy, BSOG said on Thursday.

BSOG and Carlyle did not disclose the sale price.

BSOG launched Romania's first offshore Black Sea gas project in three decades in 2022, which accounts for about 10% of Romania's gas consumption.

The launch happened months after Russia invaded neighbouring Ukraine during a critical period in European energy markets.

"Carlyle's investment in BSOG ... together with the EBRD's support and the transition of ownership to Mazarine reflects continued international investor confidence in Romania’s energy sector and its ability to attract long-term international capital into strategically important energy assets," BSOG said.

The sale is pending regulatory approval.

Carlyle founded BSOG in 2015 and brought in the EBRD with a 10% stake two years later. Mazarine Energy, a former Carlyle project, operates oil and gas assets in Tunisia, Romania and the Netherlands.

Unlike other European states, Romania does not rely on Russian gas, producing most of its needs domestically through OMV Petrom ROSNP.BX, state-owned Romgaz SNG.BX and BSOG.

OMV Petrom and Romgaz are building offshore gas project Neptun Deep in the Black Sea, which they and the government expect to start producing in 2027 and to make Romania the largest gas producer in the European Union and a net exporter.

The EU and NATO state shares a 614-km (382-mile) land border with Ukraine and has repeatedly reported Russian drone incursions into its airspace since Moscow's full-scale invasion of Ukraine in 2022, as well as mines floating in the Black Sea across key trade and energy routes.

Romanian fighter jets have destroyed marine drones floating near Neptun Deep this year.

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