Conferința BURSA - Dezvoltarea Romaniei 2018
BURSA 14.02.2018

Adina Ardeleanu (translated by Cosmin Ghidoveanu)
 
mărește imaginea
     *  Gigi Dragomir, the president of the ANRM: "We see no reasons why the price of natural gas paid by the end consumers should increase"
     *  ROPEPCA: "The proposal to adapt the royalty for natural gas made in Romania to a virtual foreign number shows a lack of sovereignty"
       The reference price for natural gas extracted from Romania, in order to establish the royalties, will be calculated based on the trading prices of the CEGH Viena hub, the National Agency for Mineral Resources announced on Friday, which issued the Order concerning the approval of the Methodology to set the reference price for natural gas extracted from Romania.
     According to the ANRM, the Order has been sent for publication to the Official Gazette and will come into force starting with the date of its publication in the Official Gazette.
     The Order is the same one that was issued by the ANRM in December, but which never appeared in the Official Gazette, as it got stuck at the government level. PNL senator Daniel Zamfir claimed that the issuing of this order was the reason why former prime-minister Mihai Tudose fired ANRM president Gigi Dragomir. Dragomir was reinstated last month by interim prime-minister Mihai Fifor.
     In a recent debate, Dorinel Ursărescu, advisor with the National Agency for Mineral Resources (ANRM) said that over the last ten years, the Romanian state has lost almost 7 billion lei by failing to update the reference price for natural gas, according to the reports by the Court of Auditors, as he pointed out that unfortunately, the ANRM did not have the willingness to update that price, which remained at its 2008 levels.
     As a matter of fact, the ANRM mentions in its Friday press release, that through the Order for the approval of the methodology for setting the reference price for natural gas extracted in Romania, the National Agency for Mineral Resources is fulfilling the decisions of the Court of Auditors of 2010 and 2015, which were upheld through the decision of the High Court of Cassation and Justice no. 972 of March 4th, 2015: "The Court of Auditors has found that by failing to update the reference price since 2008, the Romanian government has lost approximately 7 billion lei between 2008-2015".
     The Court of Auditors has asked for the updating of the reference price for natural gas extracted in Romania.
     Gigi Dragomir, the president of the National Agency for Mineral Resources said: "We have acknowledged the observations of the natural gas producers concerning the new methodology for calculating the reference price and we are open to carrying out talks concerning the new formula, in order for the reference price to be fair and specific to every operator, depending on the quality of the natural gas that is exploited. We have understood the desire of the domestic producers to have the reference price determined based on the quotations of the Romanian market. Thus, the National Agency for Mineral Resources supports the development of the Romanian natural gas trading market and wants it to become a relevant reference.
     The new reference price does not mean just a doubling of the price of natural gas for end consumers, but also fair terms for producers, as well as for the Romanian state, as the price of natural gas has been liberalized but it is still hovering around the 2008 levels. Given that according to the calculation formula, the new reference price is close to the one that transactions have been made at on the natural gas market over the last few months, we see no reasons for the price of natural gas paid by end consumers to increase".
     On the other hand, the Romanian Association of Oil Exploration and Production Companies (ROPEPCA), reiterated, in a press release, the fact that natural gas producers do not agree to the reference price being pegged to the quotations in Austria.
     So far, Romanian natural gas producers have paid their royalties based on their revenues, which is a basic principle for any tax applied to revenues, ROPEPCA wrote on Sunday.
     The producers added: "It needs to be understood that the much discussed «reference price» does not represent anything else except a minimum base for calculating the royalty, which must be the minimum price that may not be lowered.
     Other public institutions, such as the ANAF take into account the income made from the sale of natural gas for calculating the various other taxes. Why does the ANRM not take into account the same base for calculating the royalty? The proposal to peg the royalty for natural gas produced in Romania to a virtual number from abroad, a number which is far higher than domestic prices, shows a lack of sovereignty and a total indifference to the manner of operation of the natural gas market in Romania".
     ROPEPCA claims that the National Agency for Mineral Resources issued that Order by completely ignoring the opinions expressed by the main domestic leaders in natural gas in the public consultation that took place on February 7, 2018, and instead basing that Order exclusively on the conclusions of a study signed by a university professor of the Oil and Gas University of Ploiești. ROPEPCA is asking the University to announce whether the point of view expressed by the author of the study is also the point of view of the prestigious university itself and whether that point of view is relevant as it completely ignores the expertise of the domestic natural gas producers.
     In the public debate organized by the ANRM, natural gas producers have expressed a position which came naturally, which was also backed by independent individuals, such as university professors or journalists in the field who attended the event.
     Harald Kraft said: "The reference price should be the Romanian market price. We feel that a foreign market does not represent the Romanian market. We have no connection to the Baumgarten hub of Austria. Over there, the natural gas gets bought and sold several times and that is unfair when it comes to the payment of royalties in Romania". A correct approach would be the payment of the royalties based on the market price charged by producers in Romania, not a price charged abroad, says Harald Kraft.
     ROPEPCA reiterates the main arguments presented in public consultations, upon the invitation of the ANRM, and it said that it hopes they would be taken under consideration when establishing the new methodology for setting the reference price for natural gas: "In order to have efficiency and applicability, we think that it is important for the reference price for natural gas to be established based on a market calculation relevant for Romania and which reflects the actual prices charged by the upstream sector in Romania. To that end, we want to draw attention that the version concerning the foreign hubs, which is proposed in the draft order, is not applicable to the current market conditions in Romania. We feel that, the same way it happens in the international practice when the reference price is determined based on stock market indexes, the chosen index needs to be relevant to the sales of domestically produced natural gas.
     Given that (i) Romania currently doesn't export natural gas, meaning it is disconnected from the European realities and that (ii) compared to other markets, the Romanian market is not liquid enough, it can't for the moment relate to the foreign hubs for the trading of natural gas, including CEGH. Also, the prices on the foreign hubs do not reflect the actual earnings of the domestic natural gas producers, which is significantly lower because of the costs for the delivery of natural gas from the reference points to the foreign hubs. As an example, the temporary fluctuations on the Romanian market compared to the European hubs could be 4-5 Euros/Mwh or even greater.
     Moreover, the natural gas producers have the obligation to sell some of their domestic output on the centralized market in Romania, which makes the reference to a foreign hub even less relevant.
     We feel that determining the reference price based on a market index which does not reflect the prices charged for natural gas extracted in Romania, such as the price on the CEGH hub, goes against the Law on Oil no. 238/2004, which stipulates in art. 49 paragraph (2), that "the oil royalty is set as a percentage quota of the value of the gross extracted output". It is worth mentioning that in general, the transactions made on a hub are predominantly made through intermediaries which, often times are selling the product which they previously bought from a producer. In such cases, the quotes used in that manner also include the profit of the intermediaries. We feel that it is unfair for that element to be part of the formula for calculating the reference price.
     Second of all, we feel that using the Day-Ahead Market price as a benchmark is not applicable to the long term contracts, which are subject to other terms and another mechanism for the forming of prices.
     Third of all, mentioning the average superior calorific power at the national level at the value of the previous year as an element used in calculating the reference price could be discriminatory for producers selling weaker gas and which have a revenue based on the low caloric power of the product.
     Not least of all, we want to draw attention to the fact that by communicating a reference price which is tied to a foreign market and which surpasses the level of the domestic market, the ANRM sends a signal to the domestic market which can not be in the interest of consumers".
     In the beginning of the year, our sources told us that some of the employees of the ANRM, the Oil and Gas University, the ROPEPCA Association, as well as producer OMV Petrom would have wanted the reference price to be set based on the prices of the Romanian Commodities Exchange, meaning it would have wanted the producers to pay royalties based on the prices that their transactions were made at.
     According to the sources, in the beginning of November, a simulation along the new formula indicated a value of the reference price of 91.68 lei/MWh (approximately 972 lei/1,000 cubic meters), whereas in December, the main natural gas operators in Romania sold on the Romanian Commodities Exchange at a medium price of 89.38 lei/MWh (948 lei/1,000 cubic meters). 
 

 
Readers' comments    [ add a comment ] 
Trimite părerea ta.
Nume (maxim 50 caractere)
E-mail (optional)
Titlu (maxim 50 caractere)
Mesaj
 
REGULAMENTUL MESAJELOR
Acord
Prin trimiterea opiniei ne confirmați că ați citit regulamentul de mai sus și că vă asumați prevederile sale !
Aceeasi sectiune (English Section)
BECAUSE AN AGREEMENT ON THE PRICE COULDN'T BE REACHED,
Ediții precedente
Newsletter Facebook Twitter YouTube LinkedIn RSS
Jurnal Bursier
21.09.2018
BVB
     * Rulaj de 47 milioane de lei, peste media anului
     
     Piața principală a Bursei de Valori București (BVB) a încheiat ședința de tranzacționare de joi preponderent în teritoriul pozitiv, opt dintre...  click să citești tot articolul
20.09.2018
BVB
     * Scădere de 0,53% pentru BET-NG
     
     Volumul de tranzacționare înregistrat în ședința de la mijlocul săptămânii a Bursei de Valori București (BVB) a fost de 33,45 milioane de lei, dintre care...  click să citești tot articolul
20.09.2018
BURSELE DIN LUME
     Bursele din Europa au urcat ieri, pe fondul câștigurilor din sectorul materiilor prime.  click să citești tot articolul
19.09.2018
BVB
     * Toți indicii bursieri au închis în creștere
     * Tranzacții cu aproape 3% din MedLife, efectuate pe piața "deal"
     
     Lichiditatea înregistrată în ședința de tranzacționare de ieri la...  click să citești tot articolul
19.09.2018
BURSELE DIN LUME
     Piețele europene au urmat un curs mixt ieri, după ce administrația americană a decis să impună taxe vamale de 10% pe importuri chinezești de 200 de miliarde de dolari.  click să citești tot articolul
18.09.2018
BVB
     * Rulaj de 42 milioane de lei, în apropierea mediei acestui an
     
     Cinci dintre cei nouă indici ai Bursei de Valori București (BVB) au încheiat prima ședință de tranzacționare a săptămânii ușor în...  click să citești tot articolul
Cotații Internaționale

Curs Valutar

Curs valabil din data de 21 septembrie 2018
1 Dolar australian...
1 Leva bulgărească...
1 Dolar canadian....
1 Franc elvețian...
1 Coroană cehă...
1 Coroană daneză...
1 Liră egipteană...
1 Euro...
1 Liră sterlină...
100 Forinți maghiari...
100 Yeni japonezi...
1 Leu moldovenesc...
1 Coroană norvegiană...
1 Zlot polonez...
1 Rublă rusească...
1 Coroană suedeză...
1 Liră turcească...
1 Dolar S.U.A...
1 Rand sud-african...
1 Real brazilian...
1 Renminbi chinezesc...
1 Rupie indiană...
100 Woni sud-coreeni...
1 Peso mexican...
1 Dolar neo-zeelandez...
1 Dinar sârbesc...
1 Hryvna ucraineană...
1 Dirham emirate arabe...
1 Kuna croată...
1 Bahtul thailandez...
1 Gram aur...
1 DST...
AUD
BGN
CAD
CHF
CZK
DKK
EGP
EUR
GBP
HUF
JPY
MDL
NOK
PLN
RUB
SEK
TRY
USD
ZAR
BRL
CNY
INR
KRW
MXN
NZD
RSD
UAH
AED
HRK
THB
XAU
XDR
2.8801
2.3806
3.0614
4.1351
0.1822
0.6242
0.2206
4.6559
5.2123
1.4386
3.5050
0.2364
0.4852
1.0851
0.0595
0.4496
0.6306
3.9517
0.2773
0.9692
0.5774
0.0547
0.3541
0.2093
2.6455
0.0394
0.1409
1.0759
0.6269
0.1220
153.4508
5.5550
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
click aici pentru cursurile pieței valutare - istoric
English Section
14.09.2018
MREPORT BY TRANSPARENCY INTERNATIONAL
     Globalization has also brought with it an unpleasant effect: cross-border corruption. According to the intermediate report Exporting Corruption for the year 2018, a document drawn up by the organization Transparency International, there is a practice among powerful foreign companies of bribing the public servants of another country when they want to enter the local market.  click here to read the entire article
07.09.2018
DEPUTY VIRGIL POPESCU, VICEPRESIDENT OF THE COMMISSION FOR INDUSTRIES AND SERVICES
     The offshore law will once again reach the Commission, in one or two weeks, according to Mr. Virgil Popescu, the vice-president of the Commission for Industries and Services, the Chamber of Deputies.  click here to read the entire article
05.09.2018
MRS. FIREA'S VERBAL BOMBS
     * "There have been attempts for the prefect to be made a scapegoat"
     * "The support from the government wasn't much to talk about, so if it were withdrawn, there wouldn't be much of a difference"
     Bucharest's General Mayor was heard on Tuesday as a witness by the prosecutors of the General Prosecutor's Office in the case concerning the events which happened on August 10th in Victoriei Square. Before going into the Prosecutors' Department building, Gabriela Firea said she stood by her statements made immediately after the meeting of the National Executive Committee of the PSD and said: "I always speak based on facts, not just in this particular case, but in other areas as well, including politics. I will be answering to the questions of the prosecutor who contacted me and told me I was supposed to be heard in the case which is now being investigated concerning the intervention of the gendarmes on August 10th".  click here to read the entire article
31.08.2018
     The particularly hot weather and the conditions of extreme draught in Europe have brought to light terrible warnings from the past.
     Associated Press recently wrote that in the riverbed of the Elba in the Czech Republic have resurfaced the giant stones known as "the hunger stones", which have indicated over time, the coming of hard times.
     "When you see me, weep", is written on one of these stones, which seems to be considered the best hydrological benchmark in Europe. The inscription is in German and dates back to 1616.
     A detailed analysis of the stone inscriptions was published by the Czech researchers in the "Climate of the Past" magazine in 2013 (author's note: "Droughts in the Czech Lands, 1090-2012 AD", April 2013).  click here to read the entire article
29.08.2018
     * Claudiu Cazacu, XTB România: "United States companies have posted results that even exceeded the analysts' expectations, which were already for 2-figure profit increases"
     * Liviu Moldovan, financial analyst: "Currently, investors have a «blind» faith in the stock markets, in general, and in that of the US, in particular"
     For the first time in the history of the American markets, Nasdaq has surpassed the psychological level of 8,000 points.
     In the August 27 session, the Standard & Poor's 500 (S&P 500) index also reached an all time high, ending the trading session at almost 2,897 points.  click here to read the entire article
27.08.2018
     The capital market was marked, last week, by a number of controversial statements tied to the listing of Digi Communications, starting from the statements made recently by Darius Vâlcov, state advisor on the team of the prime-minister, who wrote on his Facebook page that he has asked the Financial Oversight Authority (ASF) if it was true that the book value of the Digi shares was 1 leu and 8 bani, and pointed out that at the time of the IPO, the shares of Digi were listed at 40 lei and are currently priced at 28 lei (30% down) and keep going down.  click here to read the entire article
23.08.2018
     Angela Merkel inaugurated the highway in December 2005, less than a month after she became chancellor of Germany.
     The highway was built on the territory of the former East Germany, connects Lubeck and the Polish border, after the junction with A11, and goes through the electoral precinct of chancellor Merkel.  click here to read the entire article
20.08.2018
THE NATIONAL MINERAL RESOURCES AGENCY, IN A NOTIFICATION TO THE PRIME-MINISTER:
     The Romanian government has lost over 8 billion lei, between 2006-2018, following the failure to update the royalties paid by the oil and gas companies, says Gigi Dragomir, the president of the National Mineral Resources Agency (ANRM), in a report sent to the prime-minister.  click here to read the entire article
15.08.2018
      * (Interview with Radu Grațian Ghețea, President - CEO of CEC Bank)
     In banking there are many risks and that is why banks need to be flexible and have as diverse an exposure as possible, which take the market circumstances at the time into account, says Radu Grațian Ghețea, President and CEO of CEC Bank. He told us, in an interview: "We have to adapt to what is happening in the market and we need to do things in such a way that the economic activity and that of the bank both function properly. If we're going with the idea that we want to eliminate every risk, then we'll just stop doing anything. For instance, we have been and we are a bank which heavily funds agriculture, which also means animal husbandry. A few years ago, our exposure to the aviculture sector was rather significant, and when the avian flu came we had to cover some non-performing loans on that segment. Now that the avian flu is done, we are facing the swine flu. What should we do, stop lending?"
     Reporter: Lately, there have been opinions from some experts who are saying that there is a wave of non-performing loans of the ones taken out by the First Home Program. What is your comment on these statements?  click here to read the entire article
08.08.2018
     * (Interview with Laszlo Diosi, OTP Bank CEO)
     Reporter: How would you describe the banking market, at the present time?
     Laszlo Diosi: Even though there are plenty of challenges, there are also many opportunities for the Romanian banking system. The lessons of the financial-economic crisis have resulted in a better regulated framework, stable, transparent and predictable. The guiding line of the policies developed by the authorities that are qualified, but in particular by those with a regulatory and oversight role has been characterized by a balance between profitability and systemic safety.
     But there is no shortage of challenges. We are talking here about challenges which concern the digitalization of the banking system and the national and international legislation. The entire system needs to align with complex and sometimes confused regulations.
     Recorded by Emilia Olescu  click here to read the entire article
31.07.2018
     * (Interview with Dan Paul, the president of the Association of Brokers)
     The management of the Bucharest Stock Exchange (BVB) needs to find out from brokers whether Romania truly needs a derivatives market, says Dan Paul, the president of the Association of Brokers, who was kind enough to grant BURSA an interview.  click here to read the entire article
27.07.2018
THE DĂNCILĂ GOVERNMENT AFTER SIX MONTHS
     Now we know why prime-minister Dăncilă was in a hurry to announce the activity report for the first six months at the helm of the Romanian government: the nice tale of the hike of pensions and salaries wasn't supposed to be overshadowed by the evolution of budget expenses, whose increase has led the deficit of the consolidated general budget to 1.61% of the GDP, from 0.88% after the first five months of the year.  click here to read the entire article
23.07.2018
BECAUSE AN AGREEMENT ON THE PRICE COULDN'T BE REACHED,
     The public offer started by Vimetco and Conef for a stake of at most 53.77% of the shares of Alro Slatina (Alro) has been unsuccessful, as the issuer announced that due to the unfavorable market conditions, the shareholders, company and underwriters couldn't agree on a price for the volume of 383.79 million shares put up for sale.  click here to read the entire article
23.07.2018
ECONOMIC ANALYST AURELIAN DOCHIA PREDICTS:
     * According to Eurostat, Romania has the biggest governmental deficit in the EU
     The hike of some taxes, in the near future, is unavoidable, according to economic analyst Aurelian Dochia.
     His statement comes as, in the first quarter, the government's deficit has seen an increase over the last quarter of 2017, according to data by the European Statistics Office (Eurostat).  click here to read the entire article
13.07.2018
Russia World Cup
     The final tournament of the World Football Cup will end with a gala representation, the duel between Croatia and France. France, the with the most expensive players in the tournament, has met the expectations, Croatia is the biggest surprise the of the competition.  click here to read the entire article
.