Thursday, October 20, 2011

Romania govt approves LUKOIL Black Sea deal

BUCHAREST Oct 19 (Reuters) - Romania's centrist coalition government approved on Wednesday a concession agreement for the oil exploration and development of two offshore blocks in the Black Sea with Russia's second-largest oil company LUKOIL .

LUKOIL, which owns 80 percent of the consortium that won the concession to develop the Est Rapsodia and Trident blocks, first signed the deal -- subject to government approval -- with Romania's Mineral Resources Agency in February.

The firm's minority partner, with a 20 percent stake, is US-based Vanco International.

The two blocks cover a total area of 2,000 square kilometres and the value of the investment for the first three years totals $75 million, the government said in a statement. (Reporting by Luiza Ilie; Editing by Mike Nesbit)

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