SNGN Romgaz SA
Annual Report 2018

Plain-text annual report

Societatea Nationala de Gaze Naturale “ROMGAZ” SA Consolidated Board of Directors’ Report 2018 2018 Consolidated Board of Directors’ Report Contents I. 2018 ROMGAZ GROUP OVERVIEW .............................................................................. 3 1.1. Romgaz Group in figures ............................................................................................. 3 1.2. Important events .......................................................................................................... 7 II. THE PARENT COMPANY AT A GLANCE .................................................................. 11 2.1. Identification Data ..................................................................................................... 11 2.2. Company organization ............................................................................................... 12 2.3. Mission, Vision and Values ....................................................................................... 13 2.4. Strategic Objectives ................................................................................................... 14 III. REVIEW OF ROMGAZ GROUP BUSINESS ............................................................... 15 3.1. Business Segments .................................................................................................... 15 3.2. Brief History .............................................................................................................. 18 3.3. Mergers and Reorganizations, Acquisitions and Divestment of Assets ....................... 20 3.4. Group Business Performance ..................................................................................... 21 3.4.1. Company Overall Performance............................................................................ 21 3.4.2. Sales ................................................................................................................... 25 3.4.3. Prices and Tariffs ................................................................................................ 27 ................................................................................................ 29 ........................................................................................ 31 ........................................................................... 34 ........................................................................................................... 35 IV. GROUP’S TANGIBLE ASSETS ................................................................................... 36 4.1. Main Production Facilities ......................................................................................... 36 4.2. Investments ............................................................................................................... 41 V. SECURITIES MARKET ................................................................................................. 48 5.1. Dividend Policy ......................................................................................................... 50 VI. COMPANY MANAGEMENT ...................................................................................... 53 6.1. Board of Directors ..................................................................................................... 53 6.2. Upper Management ................................................................................................... 54 VII. CONSOLIDATED FINANCIAL-ACCOUNTING INFORMATION ........................... 57 7.1. Statement of Financial Position .................................................................................. 57 7.2. Statement of consolidated Comprehensive Income..................................................... 60 7.3. Statement of Cash Flows ........................................................................................... 62 VIII. CORPORATE GOVERNANCE ................................................................................. 64 IX. PERFORMANCE OF THE MANDATE CONTRACT/DIRECTORS’ AGREEMENTS 79 Signatures ............................................................................................................................ 80 Page 2 of 80 2018 Consolidated Board of Directors’ Report Romgaz Group recorded in 2018 a revenue of RON 5,004.2 million, increasing by 9.14% (RON 419.0 million) as compared to the previous year. The Net Profit of RON 1,366.2 million was by RON 480.7 million lower than the net profit for 2017 when it recorded an 81.03% increase than in 2016. Following factors influenced the net profit:  Increase by 51% of petroleum royalty expenses (RON 445 million in 2018 as compared to RON 294 million in 2017) as a result of National Agency of Mineral Resources Order no.32/20181 whereby the reference price used to calculate the royalty becomes the reference price of index CEGH (Central European Gas Hub) Austria;  Increase by RON 164 million (43%) of the windfall tax further to the deregulation of prices in the gas sector;  Gas field assets impairment of RON 142 million as a result of an internal analysis regarding their profitability;  RON 47 million impairment of the current Iernut powerplant further to an internal analysis regarding its profitability;  Doubling exploration costs representing 3D seismic services for the discovery of new reserves (RON 98 million in 2018 as compared to RON 48 million in 2017); The consolidated net profit per share was RON 3.54. The achieved margins of the consolidated net profit (27.3%), consolidated EBIT (30.6%) and consolidated EBITDA (44.8%) confirm that the Group continues to maintain a high profitability. In 2018, Romgaz Group made investments of RON 1,188.5 million, by 47% (RON 368.2 million) higher than in 2017 and the value of the fixed assets commissioned was RON 326.6 million. In 2018, Romania’s natural gas consumption and Romgaz deliveries were similar to the level of the previous year, recording a slight evolution, according to ANRE and to the company’s consumption estimations2. Natural gas production increased for the second consecutive year, being higher by 3.39% namely 175 million m3 than the production recorded in 2017 (5,333 million m3 in 2018 vs 5,158 million m3 in 2017). This production, according to estimations, ensured Romgaz a 50.67% market share of internal gas deliveries for consumption, and a 45.98% market share of deliveries for the total consumption of Romania. The 2018 Romgaz electricity production was 1,165.2 GW by 37.48% lower than 2017 production because of the units’ unavailability due to works on the new power plant and to high gas demand for consumption and storage. According to Transelectrica, Romgaz’ market share is 1.83%. 1 NAMR Order 32/February 9, 2018 on approving the methodology for setting the reference price for the gas produced in Romania 2 As ANRE did not publish the gas market monitoring reports from December 2018, the data used for national consumption are estimated data. Page 3 of 80 2018 Consolidated Board of Directors’ Report The table below shows a summary of the main production indicators, royalty and storage services: Q4 2017 Q3 2018 Q4 2018 Δ Q4 (%) Main indicators 2017 2018 Δ ‘18/’17 (%) 1,406 1,282.0 1,393 1,792 103 92 1,411 2,589 104 398.3 284.4 414.5 0.36 Gas production (million m3) 85.86 Condensate production (tons) Petroleum royalty (million m3) Electricity production (GWh) 4.07 1.43 537.0 12.3 819.0 52.51 121.8 860.0 119.6 -1.81 Invoiced UGS withdrawal services (million m3) Invoiced UGS injection services (million m3) 5,158 5,742 371 5,333 7,867 3.39 37.01 388 4.44 1,863.8 1,165.2 -37.48 1,745.5 1,949.9 11.71 1,497.6 1,731.2 15.60 Natural gas quantities produced, delivered, injected into and withdrawn from gas storages are shown in the table below (million m3): Item No 0 1. 1.1. 1.2. 2. 3. 4. 5. Specifications 2016 2017 2018 Ratios Gross production – total, including: 1 *own gas *Schlumberger (100%) Technological consumption Net gas production (1.-1.2.-2.) Own gas injected into UGS Own gas withdrawn from UGS 2 3 4,219.4 5,157.5 5,333.3 4 5=4/3x100 103.4% 4,068.0 4,987.7 5,177.1 103.8% 151.3 169.8 156.3 92.0% 54.5 74.5 86.4 116.0% 4,013.6 4,913.2 5,090.6 103.6% 414.7 462.6 253.5 723.5 348.1 137.3% 479.4 66.3% Difference from conversion to Gross Calorific Value 4.5 2.7 5.1. *gas cushion 6. 7. Delivered own gas (3.-4.+5.-6.) 8.1. Gas sold in UGS 6.9 1.4 51.9 4,057.0 5,380.5 5,220.5 97.0% 79.2 0.0 8.1 - 8.2. Gas delivered to CTE Iernut and Cojocna from Romgaz’s 463.7 506.4 326.7 64.5% gas Own gas delivered to the market (7.+8.1.-8.2.) 9. 10. Gas from joint ventures– total, including: 3,672.5 4,874.1 4,901.9 100.6% 149.0 175.5 163.6 93.2% *Schlumberger (50%) *Raffles Energy*) (37.5%) *Amromco*) (50%) 11. Gas purchase from domestic production (including imbalances) 75.7 0.3 73.0 11.2 84.9 0.1 90.5 27.0 78.2 92.0% - 85.4 9.7 - 94.4% 35.9% 12. Traded domestic gas (9.+10.+11.) 3,832.7 5,076.6 5,075.2 100.0% 13. Gas delivered from domestic production (8.2+12.) 4,296.4 5,583.0 5,401.9 96.8% 14. 15. Delivered import gas Gas delivered gas to CTE Iernut and Cojocna from other sources (including imbalances) 6.8 4.8 33.0 40.3 181.4 549.7% 19.4 48.1% 16. Total delivered gas (13.+14.+15.) * * Invoiced UGS withdrawal services Invoiced UGS injection services 4,308.0 5,656.3 5,602.7 99.1% 1,440.9 1,745.5 1,949.9 111.7% 1,367.4 1,497.6 1,731.2 115.6% Page 4 of 80 2018 Consolidated Board of Directors’ Report Note: the information are not consolidated; these include the transactions between Romgaz and Depogaz. *) – as regards Romgaz-Schlumberger association, produced gas is fully included in Romgaz production, and then split in equal shares between the two partners, and traded separately. With respect to the joint ventures with Raffles Energy and Amromco, the produced gas does not represent Romgaz production but the value of gas is reflected in Romgaz revenue, proportionally with its respective participating interest share in the joint ventures. **)include Romgaz natural gas withdrawal/injection services Natural gas production lies in the parameters forecasted in the 2018 program, achieving 101.6% of the planned production (5,333 million m3 – achieved vs 5,250 million m3 – planned). The production level was maintained by the ongoing production rehabilitation projects of the main fields, workover and recompletion operations for 130 wells, installing new gathering pipelines and compression units and bringing into production new fields. The natural gas production evolution during 1997-2018 is shown below: 12 10 10 9.1 8.8 8.4 8 m c b 8 6 4 2 0 7.3 7 6.6 6.3 6.2 5.9 5.9 5.8 5.8 5.6 5.7 5.7 5.7 5.6 5.2 5.3 4.2 1997199819992000200120022003200420052006200720082009201020112012201320142015201620172018 Romgaz electricity production decreased by 37.48% as compared to the similar period of 2017, as noticed in the data shown below, is due to the unavailability of the units for the works performed at the new power plant and the high gas demand for consumption and storage. The table below shows the quarterly electricity production for 2018, as compared to 2017: *MWh* 2017 2 611,483 388,249 465,812 398,300 2018 3 287,287 178,933 284,429 414,539 1,863,844 1,165,189 Variation 4=(3-2)/2x100 46.98% 46.09% 61.06% 108.08% 62.51% 1 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year total Page 5 of 80 2018 Consolidated Board of Directors’ Report Romgaz is one of the largest gas suppliers in Romania. The evolution of gas supplies3 during 2008-2018 is shown below: 3 m n o i l l i m 7000 6000 5000 4000 3000 2000 1000 0 343 304 680 1018 606 310 81 3 33 181 5572 5563 5513 5200 5156 5304 5529 5055 7 4223 5623 5422 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Gas from domestic production Import gas Q3 2018 Q4 2018 Δ Q4 (%) Main indicators Q4 2017 restated **) 1,343.5 970.1 1,559.6 16.08 1,544.1 1,070.7 1,531.2 -0.84 837.5 799.9 1,164.7 39.07 Revenue Income Expenses 1.2 (0.9) 0.6 707.8 269.8 367.5 Share of profit of associates -50.00 -48.08 Gross profit 97.9 609.9 456.7 627.3 1.70 45.4 34.0 46.69 41.0 27.8 228.8 339.7 Income tax expense -71.60 -44.30 Net profit 256.0 354.2 -22.44 398.3 673.9 7.43 EBIT**) EBITDA**) 0.6 0.86 23.6 21.78 Earnings per share EPS**) (RON) -49.41 -52.03 Net profit ratio**) (% from 26.4 41.1 22.71 -33.21 43.2 -7.47 6,198 6,137 6,214 0.3 Revenue) EBIT Ratio (% from Revenue) (% EBITDA Ratio Revenue) Number of employees at the end of the period from * million RON * 2018 Δ ‘18/’17 (%) 2017 restated **) 4,585.2 5,004.2 4,786.0 5,048.8 9.14 5.49 2,667.7 3,464.3 29.86 1.4 0.6 -57.14 2,119.8 1,585.2 -25.22 316.1 219.0 -30.72 1,803.6 1,366.2 -24.25 1,853.0 1,531.9 -17.33 2,405.5 2,240.0 -6.88 4.79 34.0 40.4 52.46 3.54 27.3 30.6 44.8 -26.10 -19.71 -24.26 -14.6 6,198 6,214 0.3 *) In 2018 the Group voluntarily modified the accounting policy regarding recognition of costs with seismic, geological, geophysical works and other similar operations. According to the new policy such costs are recognised as expense when they are incurred. Previously, such costs were recognised as exploration intangible assets. Information on previous periods were restated to ensure comparability with the current period. At the same time the Group modified in 2018 the calculation method of the well decommissioning provision, replacing average cost of equity with the related interest rate of the 10 year liability government bonds as liability discount rate, in compliance with industry practices. Moreover, in 2018 the Group reanalysed the depreciation of the gas cushion 3 comprises own gas from domestic production, including gas delivered to CTE Iernut and Cojocna, 50% of the gas from Schlumberger joint venture and gas purchased from the domestic production of other producers Page 6 of 80 2018 Consolidated Board of Directors’ Report recorded as non-current asset and concluded that it should not have been depreciated; the correction affected the previous periods, therefore they have been restated in order to make them comparable to the current period. The information related to the quarters were not restated to reflect the gas cushion correction; the estimated value of the depreciation per quarter is RON 2.3 million, the quarterly result shown above is smaller by that amount. More information on these restatements are shown in the consolidated and individual financial statements annexed to this report. **) EBIT and EBITDA for 2017, those related to Q4 2017 respectively and their margins are adjusted by the income recorded following the completion in 2017 of the fiscal audit related to excise, taking into account the single nature of such income Since November 12, 2013 the company’s shares have been traded on the regulated market governed by BVB (Bucharest Stock Exchange) under the “SNG” symbol, and the GDRs on the regulated market governed by LSE (London Stock Exchange) under the “SNGR” symbol. Performance of Romgaz shares compared to the evolution of BET index (Bucharest Exchange Trading) from listing to December 31, 2018 is shown below: 45.00 40.00 35.00 30.00 e r a h s / N O R 25.00 20.00 15.00 10.00 5.00 0.00 3 1 0 2 / 2 1 / 1 1 3 1 0 2 / 8 1 / 2 1 4 1 0 2 . 1 0 . 1 3 4 1 0 2 . 3 0 . 0 1 4 1 0 2 / 5 1 / 4 4 1 0 2 . 5 0 . 9 2 4 1 0 2 . 7 0 . 7 0 4 1 0 2 / 2 1 / 8 4 1 0 2 . 9 0 . 2 2 4 1 0 2 . 0 1 . 8 2 4 1 0 2 . 2 1 . 4 0 5 1 0 2 / 9 1 / 1 5 1 0 2 / 4 2 / 2 5 1 0 2 / 1 / 4 5 1 0 2 / 4 1 / 5 5 1 0 2 / 3 2 / 6 5 1 0 2 / 9 2 / 7 5 1 0 2 / 4 / 9 5 1 0 2 / 2 1 / 0 1 5 1 0 2 / 7 1 / 1 1 5 1 0 2 / 0 3 / 2 1 6 1 0 2 / 8 / 2 6 1 0 2 / 5 1 / 3 6 1 0 2 / 0 2 / 4 6 1 0 2 / 7 2 / 5 6 1 0 2 / 5 / 7 6 1 0 2 / 0 1 / 8 6 1 0 2 / 6 1 / 9 SNG 7 1 0 2 / 1 1 / 1 7 1 0 2 / 7 1 / 2 7 1 0 2 / 7 2 / 3 7 1 0 2 / 4 / 5 7 1 0 2 / 4 1 / 6 7 1 0 2 / 0 2 / 7 7 1 0 2 / 8 2 / 8 7 1 0 2 / 3 / 0 1 7 1 0 2 / 8 / 1 1 8 1 0 2 / 0 3 / 1 8 1 0 2 / 7 / 3 8 1 0 2 / 7 1 / 4 8 1 0 2 / 4 2 / 5 8 1 0 2 / 3 / 7 8 1 0 2 / 8 / 8 7 1 0 2 / 8 1 / 2 1 8 1 0 2 / 4 1 / 9 8 1 0 2 / 2 2 / 0 1 8 1 0 2 / 7 2 / 1 1 6 1 0 2 / 4 2 / 0 1 6 1 0 2 / 9 2 / 1 1 BET 10000.00 9000.00 8000.00 7000.00 6000.00 5000.00 4000.00 3000.00 2000.00 1000.00 0.00 February 12, 2018 ANRM issued Order no.32 providing that the royalty for the gas produced in Romania is calculated based on the SPOT prices of CEGH as reference price. March 7, 2018 The General Meeting of Shareholders approved the increase of Romgaz participating interest in the off-shore exploration-production block EX-30 Trident, by taking over 2.2% free of charge further to the withdrawal of PanAtlantic from the partnership. March 29, 2018 ANRE issued Order no.58 on approving the total income, the regulated income, the economic efficiency annual growth rate and underground gas storage tariffs for the underground gas Page 7 of 80 2018 Consolidated Board of Directors’ Report storage activity performed by SNGN Romgaz SA – Filiala de Înmagazinare Gaze Naturale Depogaz Ploieşti SRL. April 1, 2018 As of April 1, 2018 the subsidiary managing the gas storage activity is operational under the name of SNGN Romgaz SA – Filiala de Înmagazinare Gaze Naturale Depogaz Ploiești SRL. Therefore, subject to EC Directive No. 73/2009 implemented by Electricity and Natural Gas Law 123/2012 (art. 141), the storage activity is unbundled from SNGN Romgaz SA and performed by a storage operator, a subsidiary where SNGN Romgaz SA is sole associate. The Subsidiary took over the operation of underground storages licensed by SNGN Romgaz SA, the operation of assets that are used for performing the activities and the entire personnel that performs storage activities. April 13, 2018 At CET Iernut, an assumed failure (leakage) of the bulkhead isolating an oil separator from direct discharge of wastewater in the emissary called for repair works. Therefore, on April 13, 2018 further to such works an accidental water-oil emulsion spill occurred, that neither contained any toxic substances for the aquatic environment nor affected the public health or Mures river flora and fauna. Further to the findings of SC Centrul de Mediu si Sanatate SRL Cluj Napoca team of professionals, the volume of water/oil emulsion spill in Mures River was of about 1.44m3. The National Administration “Romanian Waters” sanctioned the company with a civil penalty of RON 17,500 and the Environment Guard – Mures County Commission with a civil penalty of RON 25,000. The company paid RON 214,000 for ecological works performed in Mures River. The company initiated an investigation to identify the cause of the incident, and to take all measures to prevent other potential events that may generate accidental pollution. May 31, 2018 The American company DeGolyer&MacNaughton performed in H1 2018 an external audit of Romgaz natural gas reserves and contingent resources, sending the final report to Romgaz on May 31, 2018. June 4, 2018 In compliance with GEO no.109/2011 on corporate governance of public enterprises, as subsequently amended and supplemented, the selection procedure of Board members was finalised. June 14, 2018 The Board of Directors decided to appoint Mr. Volintiru Adrian Constantin as chief executive officer of the company with a four months mandate until completion, in line with the law, of the selection procedure of the chief executive officer for a four-year mandate. June 18-26, 2018 The company continued in H1 2018 the actions required for the transition of the integrated quality, environmental, occupational health and safety management system to the 2015 revisions of SR EN ISO 9001 and SR EN ISO 14001, as well as for fulfilling the requirements of SR OHSAS 18001. Further to the external audit performed by SRAC CERT Bucuresti, SNGN Romgaz SA received confirmation that its integrated quality, environmental, occupational health and safety management systems fulfil the new requirements, the transition occurred without any findings of unconformities and therefore, the company received new certificates in compliance with the reference standards 9001:2015, 14001:2015 and SR OHSAS 18001:2008. Page 8 of 80 2018 Consolidated Board of Directors’ Report July 6, 2018 After exercising the cumulative voting method the Company’s shareholders appoint by Resolution no.8 the following persons as members of the Board of Directors, for a four- year mandate:  Nistoran Dorin Liviu  Volintiru Adrian Constantin  Ungur Ramona  Grigorescu Remus  Ciobanu Romeo Cristian  Jude Aristotel Marius  Jansen Petrus Antonius Maria. July 16, 2018 Start of the CEO selection procedure. August 28, 2018 By Resolution no.39, the Board of Directors appointed Mr. Bobar Andrei as Chief Financial Officer of the company for a limited period starting from August 28, 2018 to November 2, 2021). October 1st, 2018 By Resolution no. 45, the Board of Directors appointed Mr. Volintiru Adrian Constantin as Chief Executive Officer for a four-year mandate. November 12, 2018 The Romanian Parliament issues Law no.256 on taxation and other measures for performing off-shore petroleum operations. December 21, 2018 The initial volume of proved reserves increased further to investments made at some natural gas commercial fields governed by petroleum agreements, therefore the time period necessary for their valorisation is higher than initially estimated (that lied under the legal limit of 30 years provided by the Petroleum Law 238/2004). In this respect, the Romanian Government approved on December 21, 2018:  Addenda to the Petroleum Concession Agreements for development-production;  Petroleum Concession Agreements for production concluded between the National Agency for Mineral Resources and Romgaz for 11 commercial fields. The approval of these petroleum agreements confirms the existence of the concession rights and consequently the right to produce from these blocks, eliminating the risk mentioned in the Initial Public Offering Prospectus related to the validity of these petroleum agreements. December 28, 2018 The Romanian Government issued GEO no.114/2018. Main provisions related to the gas and electricity market are: - gas sales price for producers is limited at 68 RON/MWh; - regulated electricity price for households, possible gas basket for industrial consumers; Page 9 of 80 2018 Consolidated Board of Directors’ Report - 2% contribution from the revenue recorded from natural gas and electricity sales or from the profit from re-sales, with possible deductions; - distributing 35% from the amounts allocated to other reserves, if the distribution does not impact the investment plan and if there is sufficient cash and cash equivalents. Page 10 of 80 2018 Consolidated Board of Directors’ Report Name: Societatea Nationala de Gaze Naturale “ROMGAZ” SA Main scope of activity: natural gas production and UGS Address: Medias, 4 Constantin I. Motas Square, 551130, Sibiu County Trade Registry registration number: J32/392/2001 Fiscal registration number: RO14056826 LEI Code: 2549009R7KJ38D9RW354 Legal form of establishment: joint-stock company Subscribed and paid in share capital: RON 385,422,400 Number of shares: 385,422,400 each having a nominal value of RON 1 Regulated market where the company’s shares are traded: Bucharest Stock Exchange (shares) and London Stock Exchange (GDRs) 0040 374 401020 Phone: 0040 269 846901 Fax: Web: www.romgaz.ro E-mail: secretariat@romgaz.ro Bank accounts opened at: Banca Comerciala Romana, BRD-Groupe Société Générale, Citibank Europe, Patria Bank, Raiffeisen Bank, Banca Transilvania, ING Bank, Eximbank, CEC Bank. Shareholder Structure As of December 31, 2018 the shareholder structure is: The Romanian State4 Free float – total, including: *legal persons *natural persons Total FREE FLOAT 30% Number of shares Number of shares % % 269,823,080 70.0071 115,599,320 98,004,388 17,594,932 29.9929 25.4278 4.5651 385,422,400 100.0000 The Romanian State 70% 4 The Romanian State through the Ministry of Energy Page 11 of 80 2018 Consolidated Board of Directors’ Report In financial year 2018 the Company neither performed transactions with own shares nor held own shares. Romgaz organization structure is a hierarchy-functional type, with a number of six hierarchy levels, from company’s shareholders to execution personnel, as follows:  General Meeting of Shareholders  Board of Directors  Director General  Deputy Directors General  Heads of functional and operational compartments subordinated to the Director General and to the Deputy Directors General  Execution Personnel The responsibilities of the Board of Directors are detailed in the Company’s Articles of Incorporation and as well in the BoD Terms of Reference. The Director General, the Deputy Directors General, Economic Director, as well as the branches’ directors are key people in the structure of the company. The heads of compartments (branches/departments/directions/offices etc.) representing the connection between the upper structure and the employees of the respective compartment are directly subordinated to the afore-mentioned. Each compartment has its own well-defined attributions in the company’s Organization and Operating Regulation and all these elements work as a whole. The tasks, competencies and responsibilities of the execution personnel are included in the job descriptions related to each position. Until March 31, 2018, the company had seven branches set up based on the specific of the activities performed and on the region (natural gas production branches) as follows:  Sucursala Medias (Medias Branch) having its office in Medias, 5 Garii Street, postal code 551025, Sibiu County, territorially organized in 8 sections;  Sucursala Targu Mures (Targu Mures Branch) having its office in Tirgu Mures, 23 Salcamilor Street, postal code 540202, Mures county, territorially organized in 8 sections;  Sucursala Ploiesti (Ploiesti Branch) having its office in Ploiesti, 184 G. Cantacuzino Street, 100492, Prahova County, territorially organized in 2 sections and 2 workshops;  Sucursala de Interventii, Reparatii Capitale si Operatii Speciale la Sonde Medias (SIRCOSS – Branch for Well Workover, Recompletions and Special Well Operations) having its office in Medias, 5 Soseaua Sibiului Street, 551009, Sibiu County, territorially organized in 3 sections and 5 workshops;  Sucursala de Transport Tehnologic si Mentenanta Targu Mures (STTM – Technological Transport and Maintenance Branch) having its office in Targu Mures, 6 Barajului Street, 540101, Mures County, territorially organized in 3 sections and 3 workshops;  Sucursala de Productie Energie Electrica Iernut (SPEE – Iernut Power Generation Branch) having its office in Iernut, 1 Energeticii Street, 545100, Mures County;  Sucursala Bratislava (Bratislava Branch) having its office in Bratislava, City Business Centre V.-Karadžičova 16, code 82108, Slovakia. Page 12 of 80 2018 Consolidated Board of Directors’ Report As of April 1, 2018 Sucursala Ploiesti ceased its activity and SNGN Romgaz SA – Filiala de Înmagazinare Gaze Naturale Depogaz Ploieşti SRL became operational, managing the natural gas underground storage activity. Therefore, subject to EC Directive No. 73/2009 implemented by Electricity and Natural Gas Law 123/2012 Law, (art. 141), the storage activity is unbundled from SNGN Romgaz SA and performed by a storage operator, a subsidiary where SNGN Romgaz SA is sole associate. The Subsidiary took over the operation of the underground storages licensed by SNGN Romgaz SA, the operation of assets that contribute to performing the storage activity and the entire personnel performing storage activities. Information about the Subsidiary can be found at: https://www.depogazploiesti.ro Romgaz is energy production and supply, provision of underground gas storage activities under quality, safety, continuity and flexibility conditions. The company uses all resources responsible and ethically to obtain long-term profit. ROMGAZ proposes to be an active, profitable and competitive player on the gas and electricity production market. Romgaz has to pursue both a strong development on the local market and the development on the international market in order to become an important player on the regional energy market. promoted by Romgaz are mainly the following: Increasing the company's value for its shareholders Care for the environment Quality products and services Efficiency ROMGAZ Safety for the employees Social responsibility Transparency Sustainable development Page 13 of 80 2018 Consolidated Board of Directors’ Report In order to meet its main business scope by efficiently using material, financial, informational and human resources, the company set the following strategic objectives:  increase of the gas resources and reserves portfolio through the discovery of new resources and the improvement of the recovery rate of already discovered resources;  identify new growth and diversification opportunities;  increase the company’s performance;  optimization, development and diversification of the UGS activity by reconsidering its importance in terms of safety, continuity and flexibility of the natural gas supply;  increase efficiency of the underground gas storages to improve gas trading capacities;  increase daily production through investments that reduce dependency of the daily production capacity from the reservoir pressure;  maintain the natural production decline at maximum 1.5% /year;  consolidate the position on the energy supply market;  optimise and increase efficiency of the company’s organisational structure;  elaborate a predictable dividend distribution policy to help potential investors understand the company’s financial structure;  expand the business regionally by identifying new business opportunities;  implement corporate governance principles and the Ethics and Integrity Code;  develop reporting, control and risk management capacities;  responsible and active involvement in corporate social responsibility actions. Page 14 of 80 2018 Consolidated Board of Directors’ Report Romgaz Group undertakes business in the following segments:  natural gas exploration and production;  UGS activity (the Subsidiary);  natural gas supply;  special well operations and services;  maintenance and transportation services;  power generation and supply;  natural gas distribution. In Romania Romgaz is titleholder or co-titleholder of the following petroleum agreements:  as tiltleholder of petroleum operations for exploration-development-production in 9 blocks with 100% participating interest and in 4 blocks as co-titleholder under certain concession agreements;  154 commercial fields;  exploration and production rights in Slovakia. Exploration Since October 1997, the exploration activity has been carried out in 8 blocks in Transylvania, Moldova, Muntenia, and Oltenia, in accordance with the Concession Agreement approved by Government Decision No 23/2000. In 2018, six exploration wells out of ten were tested with gas and temporarily abandoned until the necessary infrastructure is constructed to turn these into experimental and final production. The success rate of 60% lies within the average margin of 35%-65% recorded in the international hydrocarbon production activity. 3,000 million m3 turned from prospective resources to contingent resources by well 7 Merii and well 4 Tapu. Romgaz designs and plans all exploration works based on its own concepts by using modern professional software, assessments of the geological area’s prospectivity displaying specific features within the blocks under concession. These are performed by using specific surface exploration methods to identify the areas with hydrocarbon accumulations (prospects), followed by exploration drilling to prove the presence of accumulations. The results materialised in 2012in the highest reserve replacement ratios of 323%. The table below shows the evolution of the reserves replacement ratio during 2009-2018: Page 15 of 80 2018 Consolidated Board of Directors’ Report 323 155 92 49 94 82 70 102 56 42 % 350 300 250 200 150 100 50 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Reserves replacement ratio was influenced by the reduced volume of updated commercial fields and by postponing investments in the infrastructure necessary for commissioning production facilities. Production The 2018 annual program for petroleum operations considered the gas demand dynamics, reactivation, recompletion and workover operations, bringing in production wells resulted from exploration activities and production wells, maintenance programs of compressor stations and of dehydration stations, commissioning of new compressor units and the dynamics of import gas flows injected into/withdrawn from UGS. The company’s gas production was higher than the 2017 production (5,333 million m3 vs 5,158 million m3). According to estimates, this production ensured Romgaz a 50.67% market share of internal production gas deliveries for consumption and a 45.98% share of deliveries for Romania’s total consumption. The production of 5,333 million m3 was by 3.4%, namely 175 million m3 higher than the planned one, triggered by: investments made for extension/upgrading of surface facilities; commissioning a new metering panel for delivering gas into the NTS and a new gathering pipeline for Caragele led to a production increase of 500 thousand m3/day; continuous production rehabilitation of the main mature fields Filitelnic, Delenii, Laslău, Sădinca, Nadeş-Prod-Seleuş, Roman, Corunca Sud, Târgu Mureş, Grebeniş, Piscu Stejari- Hurezani; bringing in new wells, performing workover and well recompletion operations. In 2018 Romania had 8 UGSs in depleted gas reservoirs out of which 7 were in operation. Romgaz owns and operates 6 UGSs having a total capacity of 4.335 billion m3 and a working gas volume of 2.920 billion m3. Nationally, the ratio between the working gas volume and the annual consumption was about 22% in 2018. This level is in the first upper half of the international values chart of Europe. In 2018 the ratio of stored gas volumes to the working volume of the UGS’s was 69%. The UGS activity performed by Depogaz Subsidiary is a business segment regulated by ANRE (National Authority for Energy Regulation) with regard to UGS operators’ licensing and the access to the UGSs, as well as setting the tariffs related to UGS activity. Page 16 of 80 2018 Consolidated Board of Directors’ Report After a thorough restructuring, the natural gas sector is currently split into independent activities. The Romanian natural gas market includes a NTS operator (Transgaz), producers (Romgaz and Petrom with a 97% market share), UGS operators, companies for the distribution and supply of gas to non-eligible customers, and suppliers on the wholesale market. The natural gas market in Romania consists of the competition segment, which includes gas trading activities between suppliers and between suppliers and eligible consumers, and the regulated segment, which includes monopoly-like activities performed in accordance with framework contracts (transmission, underground storage, distribution and supply at a regulated price). In terms of supply, Romgaz held during 2010-2018 a national market share ranging between 37 and 46%: National consumption Romgaz traded volumes (domestic + import) Romgaz market share M.U. bcm 2011 14.4 2012 13.5 2013 12.5 2014 12.2 2015 11.6 2016 11.8 2017 12.3 2018 12.3 bcm 6.3 5.9 5.7 5.7 5.1 4.4 5.7 5.7 % 43.87 42.82 44.5 46.1 44.0 37.1 46.3 46.0 The above quantities include gas from own internal production, domestic gas purchased from third parties, 100% gas from Schlumberger joint venture and import gas. As compared to previous years, 2018 deliveries include gas delivered to Iernut and Cojocna for electricity production, as well as technological consumption. SIRCOSS was set up in 2003 in accordance with the GSM Resolution No5/June 13, 2003. The branch performs two types of activities:  well workover, recompletion operations and production tests;  special well operations. All well workover, recompletion operations and production tests operations are performed by means of rig installations. The second activity consists of special well operations, namely services supplied by means of different transportable equipment for downhole or surface operations. During the past years, most of services were supplied for the wells within the company’s portfolio, yet, well workover and special well operations were also supplied to other companies that have under concession and operate gas wells in Romania. STTM was established in October 2003, by taking over the means of transportation from Medias, Targu-Mures and Ploiesti branches. The branch’s scope of activity is the transportation of goods and people, the specific technological transportation, and the maintenance activity for the benefit of the company and of third parties. Page 17 of 80 2018 Consolidated Board of Directors’ Report CTE Iernut is an important junction point in the National Power Grid located in the centre of the country, in Mures County on the left bank of Mures River between towns Iernut and Cuci. Gas supply, industrial water and power discharge facilities are forthcoming. CTE Iernut is operated under Sucursala de Producţie Energie Electrică (SPEE). CTE Iernut has an installed capacity of 600 MW split into 4 energy groups: two 100 MW energy units of Czechoslovakian manufacturing and two 200 MW energy units of Soviet manufacturing. The groups were commissioned between 1963 and 1967. As of January 20, 2019 the energy units 2 and 3 of 100 MW were excluded from CTE Iernut. Cojocna Project is an outcome of the pressing need of finding ways to experimentally produce from a series of wells resulted from exploratory drilling, in order to determine, as detailed as possible, the production potential of such area. The wells were located far from each other and from the National Transmission System (NTS). Therefore, the gas from wells Palatca 1, Vaida 1 and 2 is used as fuel gas for two electricity generation units, each having 1.5 MW power. The natural gas distribution is a regulated business segment and the company’s activity is currently limited to Ghercesti and Piscu Stejari areas. Romgaz has concession agreements with the Ministry of Economy for Ghercesti area and with Piscu Stejari Town Hall for Piscu Stejari distribution. The activity is carried out by Targu-Mures Branch. Societatea Nationala de Gaze Naturale “ROMGAZ” SA is Romania’s most important natural gas producer and supplier. The company’s experience in the field of gas exploration and production exceeds 100 years. Its history began in 1909 when the first natural gas commercial reservoir was discovered in the Transylvanian Basin upon the drilling of well Sarmasel-2. The most important historic benchmarks are: Page 18 of 80 2018 Consolidated Board of Directors’ Report 1909 1913 1925 1958 1972 1976 1979 1991 1998 2000 2001 2013 2015 2018 • Natural gas discovery in Sarmasel (Transylvanian Basin) • First gas production recorded in Romania (113,000 m3) • Setting up the National Gas Company "SONAMETAN" • • First UGS in Romania at Ilimbav, Sibiu County • • Use of compressors in the course of production • Maximum gas production obtained by Romgaz (29,834 million m3) • Started to import natural gas from the Russian Federation • Centrala Gazului Metan was reorganized to Regia Autonoma "ROMGAZ" RA • "ROMGAZ" RA becomes Societatea Naţională de Gaze Naturale "ROMGAZ" SA • SNGN "ROMGAZ" SA was reorganized in five independent companies (SC "Exprogaz" SA Mediaş, SNDSGN "Depogaz" SA Ploieşti, SNTGN "Transgaz" SA Mediaş, SC "Distrigaz Sud" SA Bucureşti şi SC "Distrigaz Nord" SA Tîrgu-Mureş • The current SNGN "ROMGAZ" SA Medias was established • Company shares are traded on Bucharest Stock Exchange and London stock Exchange (GDR's) • Unbundling the underground gas storage activity by setting up Filiala de Înmagazinare Gaze Naturale Depogaz SRL Ploieşti • As of April 1, 2018 Filiala de Înmagazinare Gaze Naturale Depogaz SRL Ploieşti became operational Page 19 of 80 2018 Consolidated Board of Directors’ Report Unbundling of underground gas storage activity In compliance with European and national applicable laws, Directive 2009/73/EC5 and Gas Law No 123/20126 Romgaz has to legally unbundle the gas storage activity from gas production and supply activities. According to the provisions of article 141, paragraph 1 of the Law (which transcribes article 15, paragraph 1 of the Directive) a storage operator under a vertically integrated economic operator must be independent from other activities not related to transmission, distribution and underground storage activities at least from legal, organizational and decision-making perspective. Therefore, considering the above mentioned matters, it is compulsory to legally unbundle the gas storage activity from the gas production and supply activities performed by Romgaz by establishing a separate company to act as independent storage operator. The Extraordinary General Meeting of Shareholders approved by Resolution no.10/19.12.2014 (item 2) to set up the subsidiary “SNGN ROMGAZ SA - Filiala de Înmagazinare Gaze Naturale “Depogaz” Ploieşti S.R.L.”. The subsidiary became operational as of April 1, 2018. Changes to the organizational structure A series of changes to the organizational structure were performed in 2018: Decision no.48 of the Board of Directors of October 1, 2018 modified the company’s organisational structure by setting up at the headquarters a Legal Department; Decision no.61 of the Board of Directors of December 14, 2018 modified the organisational structure at the headquarters and at its branches’ as follows: headquarters: setting up the Receivable Recovery Office within the Legal Department and changing the Risk Management Office into Risk Management Department; SIRCOSS Medias and STTM Targu Mures – setting up a work team in each branch. No mergers of the company took place in financial year 2018. 5 Directive 2009/73/EC of the European Parliament and Council on July 13, 2009 concerning common rules of the internal market in the natural gas sector and repealing Directive 2003/55/EC 6 Electricity and Gas Law no. 123 of July 10, 2012 Page 20 of 80 2018 Consolidated Board of Directors’ Report 3.4.1. Company Overall Performance The Company’s revenues are generated mainly from gas production and delivery (own gas production and delivery, gas produced by joint ventures, import gas deliveries and gas deliveries from other domestic producers), from supply of underground gas storage services, from production and supply of electric energy and from other specific services. Item no 0 1 2 3 4 5 6 7 Description 1 Total Income, out of which: *operating income *financial income Revenue Expenses, out of which: *operating expenses *financial expenses Share of associates’ result Gross Profit Income tax Net Profit * RON thousand * 2017 (reviewed) 2 4,786,044 4,762,911 23,133 4,585,186 2,667,667 2,646,959 20,708 2018 3 5,048,815 4,991,422 57,393 5,004,197 3,464,253 3,388,441 75,812 1,375 622 2,119,752 316,118 1,803,634 1,585,184 219,016 1,366,168 Ratio (2018/2017) 4=3/2x100 105.49% 104.80% 248.10% 109.14% 129.86% 128.01% 366.10% 45.24% 74.78% 69.28% 75.75% The Total Income of 2018 was higher than the 2017 income by 5.49%. Below are the compared economic-financial indicators for 2017 and 2018 and their detailed structure split by activity: Compared economic-financial indicators Description 2017 2018 * RON thousand * Indices (2018/2017) 1 Revenue Cost of commodities sold Investment Income Other gains and losses Net losses from impairment of trade receivables Changes in inventories Raw materials and consumables Depreciation, amortization and impairment Employee benefit expense 2 3 4=3/2x100 4,585,186 (61,095) 22,350 (120,068) (186,651) 5,004,197 (245,020) 53,279 (102,989) (19,941) (32,180) (64,329) (75.460) (552.446) (562,894) (708,142) (621,330) 109.14% 401.05% 238.38% 85.78% n/a 17.24% 117.30% 128.18% 110.38% Page 21 of 80 2018 Consolidated Board of Directors’ Report Finance cost Exploration Expenses Share of associates’ result Other Expenses Other Income Profit before tax Income tax expense Profit for the year Structure of indicators split by activity-2017 Description TOTAL (18,791) (183,121) 1,375 (29,724) (247,123) 622 (1,101,933) (1,409,447) 364,169 2,119,752 (316,118) 18,442 1,585,184 (219,016) 1,803,634 1,366,168 158.18% 134.95% 45.24% 127.91% 5.06% 74.78% 69.28% 75.75% Underground Gas Storage Electricity * RON thousand * Settlement between segments Other activities Gas production and deliveries 2017 including: 2 4,585,186 3 3,760,366 4 566,246 5 545,317 6 264,544 7 (551,287) (61,095) (50,038) (7) (10,313) (737) 22,350 321 1,488 26 20,515 (122,068) (84,297) (3,271) (1,672) (32,828) (186,651) (117,084) (72,025) 124 2,334 - - - - (64,329) (46,681) (9,695) (1,167) (10,369) 3,583 (552,446) (431,820) (95,827) (6,560) (18,239) (562,894) (357,407) (54,832) (33,432) (117,223) 1 Revenue Cost of commodities sold Investment Income Other gains and losses Changes in inventories Raw materials and consumables Depreciation, amortization and impairment Employee benefit expense Finance cost (18,791) (17,143) (1,648) Exploration Expenses Share of associates’ result (183,121) (183,121) 1,375 - - - - - - - - 1,375 Other Expenses Other Income Profit before tax Income tax expense Profit for the year (1,101,933) (1,119,837) (75,083) (389,388) (66,064) 548,439 364,169 362,945 198 39 1,722 (735) 2,119,752 1,716,204 255,544 102,974 45,030 (316,118) - - - (316,118) 1,803,634 1,716,204 255,544 102,974 (279,322) - - - Description Structure of indicators split by activity-2018 Gas production and deliveries 3 2018, including: TOTAL 2 1 Revenue 5,004,197 4,522,558 * RON thousand * Underground gas storage Electricity Other activities Settlement between segments 4 355,135 5 6 7 388,514 356,486 (618,496) Cost of commodities sold (245,020) (212,492) (142) (34,084) (805) 2,503 Investment income 53,279 74 456 10 52,739 Other gains and losses (102,989) (61,366) 2,970 (2,446) (42,147) Loses from impairment of trade receivables Changes in inventories Raw materials and consumables (19,941) (20,103) - 163 (1) (32,180) (13,380) (21,606) 77 2,729 (75,460) (54,882) (21,530) (1,213) (11,033) 13,198 Page 22 of 80 - - - - - - - - - 2018 Consolidated Board of Directors’ Report Depreciation, amortization and impairment Employee benefit expense (708,142) (529,727) (98,481) (61,512) (18,422) (621,330) (390,737) (57,578) (34,411) (138,604) Finance cost (29,724) (25,815) (3,909) Exploration expense (247,123) (247,123) Share of associates’ result 622 - - - - - - - - 622 - - - - - Other expenses Other income Profit before tax Income tax expense Profit for the year (1,409,447) (1,504,998) (151,725) (281,861) (76,755) 605,892 18,442 16,575 3,757 82 1,125 (3,097) 1,585,184 1,478,584 7,347 (26,681) 125,934 (219,016) - (754) - (218,262) 1,366,168 1,478,584 6,593 (26,681) (92,328) - - - Revenue and the revenue weight on activity segments is shown in the table below: Description 2016 2017 2018 and delivery Gas production activity UGS activity Electricity generation and delivery activity Other activities Settlement between branches TOTAL Revenue RON mil 2,857.7 358.6 399.0 239.2 -442.7 3,411.9 % R 83.76 10.51 11.69 RON mil 3,760.4 566.2 545.3 % R 82.01 12.35 11.89 RON mil 4,522.6 355.1 388.5 % R 90.37 7.09 7.76 7.01 -12.98 100.00 264.5 -551.3 4,585.2 5.77 -12.02 100.00 356.5 -618.4 5,004.2 7.12 -12.35 100.00 The financial income is higher by 148.1% than the one recorded in the previous year. Financial income consists mainly of interests from cash in bank deposits and in state bonds. Description Year 2017 Year 2018 Ratio (RON thousand) 2 (RON thousand) 3 2,646,959 20,708 2,667,667 3,388,441 75,812 3,464,253 (2018/2017) 4=3/2x100 128.01% 366.01% 129.86% 1 Operating expenses Financial expenses Total expenses Financial Expenses Financial expenses during 2018 are higher by 366.1% as compared to the previous year due to impairment recorded in connection with the investment made by the Group in Electrocentrale Bucuresti. Chapter 7 shows more details on the different categories and a comparative assessment thereof. Compared financial results are shown in the table below (RON thousand): Page 23 of 80 2018 Consolidated Board of Directors’ Report Description 2017 2018 1 Operating results Financial results Share of associates’ result Gross result Income tax Net Result 2 2,115,952 2,425 1,375 2,119,752 316,118 1,803,634 3 1,602,981 (18,419) 622 1,585,184 219,016 1,366,168 Ratio (2018/2017) 4=3/2x100 75.76% n/a 45.24% 74.78% 69.28% 75.75% Gross result during January – December 2018 in amount of RON 1,585,184 thousand is lower than the gross result of the similar period of 2017 by 25.22%. The 2018 financial result is below the 2017 one, due to the impairment recorded in connection with the investment made by the Group in Electrocentrale Bucuresti. of the company is also emphasized by the evolution of indicators presented in the table below: Indicators 1 Working capital (WC) Working capital requirements (WCR) Net cash Economic Rate of Return (ERR) Return on Equity Return on Sales Return on Assets EBIT EBITDA ROCE Asset Solvency where: Calculation Formula 2 Clt-Af = E+Lnc+Pr+Si-Af (Ast-L+Pp) - (Lcrt-Crst+Idf) WC-WCR = L-Crst Pg/Cltx100 Pn/Ex100 Pg/Rx100 Pn/Ax100 Pg+Exi-Ir EBIT+Am EBIT/Cempx100 E/Lx100 M.U. 3 RON mil RON mil Ron thousand % % % % RON thousand RON thousand % % 2017 restated 4 2018 5 3,384 3,157 227 22.46 19.92 47.57 17.09 2,159 2,708 22.23 85.80 1,894 1,327 567 19.01 17.80 31.68 14.96 1,532 2,240 18.37 84.05 Clt Af E Lnc Pr Si Ast L Pp long-term capital; non-current assets; equity; non-current liabilities; provisions; investment subsidies; short term assets; liquidity position; Prepayments; Idf Pg Pn R A Exi Ir Am Cemp deferred income gross profit; net profit; revenue; total assets; interest expense; interest income amortization and impairment; capital employed (total assets–current liabilities) Crst short-term credit; L total liabilities Page 24 of 80 2018 Consolidated Board of Directors’ Report 3.4.2. Sales Sales’ evolution and perspective The entire quantity of gas traded by Romgaz was sold on the internal market. Romgaz traded quantities delivered on free market both by bilateral negotiation and on the centralized market. Quantities delivered during 2018 have been traded 60% on the Romanian centralized market. Description 2018 2017 2016 2018/2017 2017/2016 Delivered gas mil.cm 5,602.7 5,656.3 4,308.0 -0.95% Sales to third parties mil.cm 5,256.6 5,109.6 3,839.5 2.88% Gas for electricity production in own power plant mil.cm 346.1 546.7 468.5 -36.69% 31.30% 33.08% 16.69% From the total of quantities of gas delivered to third parties the following available means of trade have been used:  gas delivered on the basis of contracts concluded on centralized markets: 35.99 TWh;  gas delivered on the basis of bilateral contracts: 19.01 TWh Even if ROMGAZ’s gas production increased, the volumes delivered in 2018 recorded a sensitive decrease, approximately 99% as compared to those recorded in 2017 and the volumes from own production reaching 97% as compared to 2017. Nevertheless, gas delivered to third parties increased by 2.8%, mainly due to contribution of quantities of import gas and decrease of the quantities delivered to CET Iernut. It is worth mentioning the increase of traded import gas with 150 million m3 beyond the level of 2017; this increase partially compensated the decrease of gas volumes traded from underground storages that was of approximately 250 million m3. At the same time, the quantity of gas used at CET Iernut decreased by 64% as compared to 2017, namely approximately 200 million m3. The status of deliveries and sources is shown in the table from pages 4-5. As regards the means of trading through Romanian centralized markets, Romgaz’s weight was significant, approximately 54% of the total of gas traded on these markets with delivery in 2018 were sold by Romgaz. In terms of quantity, Romgaz traded over 35 TWh with delivery in 2018 on centralized markets, from the total of 65 TWh, representing the total transactions performed on these markets with the same period of delivery. Starting with September 2018 the short term centralized markets became operational and Romgaz started to be active on the day ahead market, respectively intraday market in order to optimize the sales on one hand and to balance the portfolio, on the other hand. For 2019 the perspectives for the company’s gas trades are characterized by:  conclusion during 2018 of contracts with delivery in 2019 for approximately 60% of the sales estimates for this year;  the large majority of gas quantity has been contracted on centralized market, approximately 60%, maintaining the percentage of 2018. For gas traded on centralized markets with delivery in 2019, Romgaz obtained an annual weighted average price of RON 91/MWh, similar with the price obtained on the market (considering all available sources, average prices obtained by other sellers in the market especially competing producers or competing sources from import); Page 25 of 80 2018 Consolidated Board of Directors’ Report  Uncertainties occurred by GEO no.114/20187 including measures that significantly affects the company’s business, especially by capping the price at RON 68/MWh for gas sold from current domestic production and enforcing the contribution of 2% on revenue. The impact over Romgaz’s business will be determined following the preparation of secondary legislation by ANRE.  Implementation of projects that will increase the capacities of exporting gas from Romania to other countries (especially to Hungary and Bulgaria), which would lead to a proper interconnection of gas transmission networks from Romania and would represent an alternative in terms of gas trade. This aspect must be viewed in connection with the regulation framework that will be prepared by applying GEO no. 114/2018. We estimate the preservation of gas production and sales, corroborated with a decrease of energy production at CET Iernut for 2019 considering the works that will be performed to put the new power plant into operation. Given GEO no. 114/2018 and the secondary legislative framework, Romgaz estimates an increase of total gas demand on the market, especially due to stimulating consumption at a regulated price below the current price level, both on household market and, especially on the industrial customer market. The competitive status and share in the market of the company’s products and services During 2018, the Romanian gas market continued to apply the European regulations in the field, especially for the preparation and application of Network Code, in accordance with Regulation 312/2014 on balancing the gas transmission systems. The entire secondary legislation necessary to implement the entry-exit system has been prepared, and the Virtual Transaction Point and short term markets became operational, on one hand, and long and medium term markets of standardized products became operational as well, on the other hand. On gas market, as regards the sources, the competition was favourable for internal producers, considering the prices relatively high for import gas. However, the additional gas demand and the suppliers’ obligations related to gas storage as well led to creation of opportunities for import gas. According to the company’s estimates, the national gas demand remained at an approximatively constant level as compared to 2017. Import of gas on the Romanian market recorded an increase by approx. 16 TWh, while the quantities imported by Romgaz were of approximately 2 TWh. These increased quantities together with the additional Romgaz production compensated the lower quantities delivered on the market by the other participants in the market. In accordance with the data provided by the system operator, the national electricity production was of 63,933,510 MWh in 2018. On this market, Romgaz held a market share of 1.82% below the share of 37.67% recorded in the previous year. The yearly evolution of electricity production and market share: Description 2018 (MWh) 2017 2016 (MWh) (MWh) 2018/2017 (%) 2017/2016 (%) Domestic production 63,933,510 63,747,760 64,288,078 Romgaz’s production 1,165,055 1,863,788 1,628,368 Romgaz’s market share 1.822 2.924 2.533 0.29 -37.49 -37.67 -0.84 14.46 15.43 7 GEO no.114 on December 12, 2018 establishes measures in the field of public investments and some fiscal- budgetary measures, amends and supplements some pieces of legislation and extends some deadlines. Page 26 of 80 2018 Consolidated Board of Directors’ Report As regards the generation sources, during November 2018, the electricity was produced by (approximate levels, ANRE source, market reports):  30% hydro;  22 % coal;  18 % nuclear;  15% gas;  15 % renewable sources and other producers The situation of Romanian gas market allowed the company to have an extended portfolio of customers both on centralized markets and as regards the contracting by direct negotiation. Moreover, the company has a balanced portfolio as regards the ratio of the final consumer market (especially the power plants) to wholesale market where it sells gas to suppliers. 3.4.3. Prices and Tariffs The regulatory framework for natural gas production, transmission, distribution, supply and storage, organization and operation of the gas sector, market access as well as criteria and procedures for granting authorizations and/or licenses in the natural gas sector are set by Law No 123/2012. Romgaz Group operates both on regulated market, performing underground gas storage and distribution activities, and on the free market, performing gas and electricity production and supply activities. Underground Gas Storage (UGS) The revenues from the underground storage business and the storage tariffs are regulated since April 1, 2004, by ANRGN Decision no. 1078/2003, abrogated by ANRE Order no. 22 of May 25, 2012 on approval of the Methodology for approving prices and setting regulated tariffs in the gas sector, published in the Official Gazette of Romania no. 379 of June 6, 2012. The storage tariffs applied for the two compared periods are those approved by ANRE Order no. 58 of March 27, 2015 (between January 1, 2017 and March 31, 2018) and ANRE Order no. 58 of March 29, 2018 (starting on April 1, 2018), respectively. There must be mentioned that ANRE Order no.9 of March 23, 2016 and Order no. 19 of March 30, 2017 extended the term for applying Order No. 58/2015. The storage tariffs applied are described in the table below: Tariff Component M.U. Volumetric component for gas injection Fixed component for capacity reservation Volumetric component for gas withdrawal RON/MWh RON/MWh/ storage cycle RON/MWh Tariffs (January 1st, 2017- March 31, 2018) 2.37 13.68 Tariffs (starting on April 1st, 2018) 1.68 9.90 1.87 1.67 Page 27 of 80 2018 Consolidated Board of Directors’ Report Natural Gas Supply The final gas price for the customer is the sum of the weighted average gas acquisition price, the tariffs of transmission, storage and distribution, and the trading component, according to the following formula: Final price = Weighted average price of gas acquisition + Transmission tariff + Storage tariff + Distribution tariff + Trading component The distribution tariffs depend on the distribution area and on the distribution system operator. Regulated prices and tariffs are calculated by the “revenue-cap” method for underground storage and gas transmission and by the “price-cap” method for regulated distribution and supply. According to the provisions of Article 181, paragraph (5) of Law No. 123/2012, the domestic gas acquisition price on the regulated market is set by Government Decision, at the proposal of the competent ministry, and is updated by ANRE and ANRM, in accordance with the provisions of the Calendar for gradual deregulation of prices for the final customers. The table below shows the gas supply average prices in the period 2016-2018: Description 1 Average supply price for internal gas production8 Average price for import gas M.U. 2 RON/1000 m3 RON/MWh RON/1000 m3 RON/MWh 2016 3 698.30 66.36 2017 4 695.74 66.33 2018 5 783.42 74.94 1,597.47 898.27 1,134.84 105.74 83.81 105.65 Natural Gas Distribution Distribution tariffs and final regulated prices valid during the period analysed have been approved by ANRE Orders, as follows:  ANRE Order No. 57/2015 on modification of ANRE Order no. 120/2014 on setting regulated tariffs for gas distribution services and approval of prices for regulated gas supply performed by Societatea Natională de Gaze Naturale "ROMGAZ" - S.A. Medias, (as of July 1, 2015);  ANRE Order No. 58/2016 on setting regulated tariffs for gas distribution service and approval of prices for regulated gas supply performed by Societatea Nationala de Gaze Naturale "ROMGAZ" - S.A. Medias (as of October 1, 2016);  ANRE Order No. 89/2017 on setting the regulated tariffs for gas distribution services and approval of prices for regulated gas supply performed by Societatea Naţională de Gaze Naturale "ROMGAZ" - S.A. Medias (as of October 1, 2017);  ANRE Order No. 146/2018 on setting the regulated tariffs for gas distribution services and approval of prices for regulated gas supply performed by Societatea Naţională de Gaze Naturale "ROMGAZ" - S.A. Medias (as of August 1, 2018). The applied tariffs and prices are presented in the table below: Description Distribution tariffs (RON/MWh): *B1 consumption up to 23.25 MWh July 1, 2015 – September 30, 2016 October 1, 2016- September 30, 2017 October 1, 2017- August 31, 2018 August 1, 2018- present 44.01 44.01 52.48 52.70 8 Including commodity gas and gas from the association with Schlumberger and without storage services costs Page 28 of 80 2018 Consolidated Board of Directors’ Report *B1 annual consumption between 23.26 and 116.28 MWh *B1 annual consumption between 116.29 and 1,116.78 MWh *B1 annual consumption between 1,116.79 and 11,627.78 MWh Final regulated prices (RON/MWH): *B1 consumption up to 23.25 MWh *B1 annual consumption between 23.26 and 116.28 MWh 40.06 44.01 40.06 44.01 47.91 47.01 47.91 47.01 40.06 40.06 45.77 46.21 117.75 113.13 117.75 113.13 123.27 118.49 152.23 147.44 On December 31, 2018 Romgaz Group had 6,132 employees and SNGN Romgaz SA had 5,626 employees. As of April 1, 2018 a number of 504 employees terminated their labour contracts concluded with the company continuing their activity under Depogaz Subsidiary. The evolution of the company’s number of employees between January 1, 2015 – December 31, 2018 is shown in the table below: Description 2015 2016 2017 2018 Romgaz Group SNGN Romgaz SA 1 Employees at the beginning of the year Newly hired employees Employees who terminated their labour relationship with the company 2 6,344 3 6,356 4 6,246 159 147 168 278 233 281 6,198 286 270 Employees at the end of the year 6,356 6,246 6,198 6,214 6,198 241 751 5,688 The structure of employees at the end of 2018 was the following: a) by level of education  University  Secondary education  Foreman education  Vocational school  Middle school b) by age      under 30 years 30-40 years 40-50 years 50-60 years over 60 years c) by activities      gas production production tests/well special operations health transportation gas storage 24.64 % 28.02% 3.15 % 33.26 % 10.93 % 4.43 % 14.55 % 35.68 % 36.58 % 8.77 % 63.53 % 11.52 % 1.29 % 8.43 % 8.46 % Page 29 of 80 2018 Consolidated Board of Directors’ Report  electricity production 6.76 %. Distribution of Romgaz employees by headquarters and by branches is shown in the figure below: STTM 9% SIRCOSS 12% Iernut Branch 8% Headquarter 8% Medias Branch 34% Targu Mures Branch 29% The structure of the company’s employees from the headquarters and from branches is shown in the table below: Entity Workers Foremen 1 Headquarters Mediaş Branch Targu-Mures Branch SIRCOSS STTM Iernut Branch TOTAL 2 3 37 1,494 1,319 517 397 273 4,037 88 53 52 20 42 255 Administrative Employees 4 Total 5 428 338 271 147 107 105 465 1,920 1,643 716 524 420 1,396 5,688 The main areas of training in 2018 were the increase of competitiveness and professional performance by improving the professional training. Thus, the following were taken into account:  training of administrative employees in various areas of activity, in cooperation with training suppliers from the country and abroad;  authorization/re-authorization, according to specialization and work;  skills improvement and vocational training of workers through internal training courses. A number of 2,414 employees were trained during 2018 and the costs of such professional training and skills improvement training courses were of RON 1,577,499. The annual training program was implemented as follows:  1,352 persons participated in professional training programs with professional subjects applicable to their activity;  684 persons participated in training courses to obtain authorization/re-authorization in accordance with their specialization and work place;  372 persons participated in internal training courses; Page 30 of 80 2018 Consolidated Board of Directors’ Report  6 persons participated in qualification courses at work place. During 2018, the professional training activity focused mainly on sustaining the increase of adaptability to new economy requirements based on knowledge, in order to ensure and update the required competencies for employees working in the technical, economic and research- development field etc. Within Romgaz there are two trade unions, as follows:  “Sindicatul Liber din cadrul S.N.G.N. Romgaz S.A.”, consisting of 6,146 members;  “Sindicatul Extracţie Gaze şi Servicii”, consisting of 10 members. Thus, the total number of union members within Romgaz Group is 6,156 as compared to 6,214 representing the total number of employees. The union members/total number of employees ratio is 99.07%. Relationship between manager and employees: following negotiations, the parties have agreed to conclude a Collective Labour Agreement, valid for 2017 and 2018. On November 28, 2018, by an addendum, the parties set the extension of the Collective Labour Agreement concluded by SNGN Romgaz SA, registered at Territorial Labour Inspectorate Sibiu under no 22606/28.12.2016, valid from December 29, 2018 until December 28, 2019. During 2018, there were two conflicts between the management and the trade union, in progress on December 31, 2018 (see Annex 2 – Litigations: Items 55 and 384). In 2018, the environment protection activity continued to focus on compliance of Group’s business with the applicable legal requirements on environment protection. Another aim was meeting specific objectives related to:  Increase of awareness regarding compliance with legal requirements;  Pursuing the accomplishment of all reports imposed by the environment legislation in force, by centralizing the information required and reported by Romgaz Branches and submitted to public authorities;  Rendering efficiency to environment protection, a support for the management process. The environment protection activities during 2018 focused on:  Complying with permitting requirements:  Complying with legal requirements relating to environment permits for all 144 units. In this respect, the conformity degree is 100%.Thus, for 6 units the company has required and obtained the review of the permits, for 7 units reauthorisation was requested and obtained, for 4 units documents for temporary interruption of the activity have been submitted and for 7 units documents for abandoning gas production wells;  Complying with legal requirements regarding waste water management permits, for:  88 units, for which the conformity degree is 100% to be noted that for 7 units re-authorization permits are in process of being obtained, for 13 units a point of view for necessity of reauthorisation was requested and for 2 objectives abandoning documentation was submitted; Page 31 of 80 2018 Consolidated Board of Directors’ Report  40 units related to reservoir water systems/injection wells, out of which one is in process of obtaining the re-authorization and for 3 units the abandoning documentation was submitted; A company-wide application has been developed to monitor environment/water/injection permits, and to permanently analyse and continuously supervise compliance with legal requirements in the field of environment protection;  Disposal of waste generated from own activity, according to the legal requirements in force. In 2018, the company managed a quantity of 4,841,647 tons of waste, out of which 785.049 tons were recycled and co-incinerated (744.904 tons were recycled and 40.145 tons were co-incinerated), 38.445 tons of waste were disposed by incineration and 4,018.153 tons of waste were disposed by storage. 2018 AMOUNT OF GENERATED WASTE (4,841.647 tons) 38 785 4 842 6 000 5 500 5 000 4 500 4 000 Quantity disposed by storage Quantity recycled and co incinerated Quantity disposed by incineration In 2018, the “Program for Prevention and Reduction of Waste Generated by S.N.G.N. Romagaz S.A.” pursued the accomplishment of the measures thereunder and this can be consulted accessing link https://www.romgaz.ro/ro/content/program-de-prevenire-si-reducere- cantitatilor-de-deseuri. the The Program aims at identifying the objectives, targets and policy actions the company is required to comply with in its waste management activity in order to fulfil the company’s strategic objectives.  Monitoring the compliance with legal requirements on environment protection. In 2018 Romgaz did not exceed the limits permitted by regulations in force, with the effluents discharged into surface water bodies or sewage networks; In 2018, three external environment complaints was recorded, as follows:  Pollution with oil products into the Mures river. It has been strictly pursued the implementation of all measures imposed by the two regulation authorities in the field, namely the Water Basin Administration Mures and the National Environmental Guard of Mures County, requested by finding documents. With due urgency, Romgaz undertook all necessary measures to minimise the effects of pollution with oil products and determined technical and organizational measures to prevent these type of event;  Non-compliance with some legal requirements related to a proper management of reservoir water- structure Petis (well 11 Petis) and infringement of rules Page 32 of 80 2018 Consolidated Board of Directors’ Report related to tonnage access and legal speed admitted on the access roads to well 11 Petis. In this respect, in accordance with the CEO’s Decision no 91/2018, a Commission has been established to verify the event. This complaint was partially unjustified, the pollution with reservoir water was not found, this being properly managed by the company. For the aspects related to access to wells and in order to prevent this kind of incidents, an operational procedure on “Works to ensure access, to prepare the well site for the units where works at the well are to be performed” has been prepared, thus ensuring the collaboration with local authorities for the access to wells locations using public roads;  Pollution with reservoir water and hydrocarbons on the plaintiff’s land FPGN Oniscani. Following the internal inspections, analysis of the soil samples, resulted that the values/hydrocarbons samples or chloride content were not exceeded, the conclusion being that there was no pollution generated by Romgaz’s activity. In this respect, the plaintiff and the National Environment Guard Mures County have been notified over the conclusion of expertise;  After extending the scope of business by taking over Iernut thermoelectric power plant, the aim was complying with the legal requirements applicable in this field of activity, in 2018 being monitored the emissions for burners IMA 1, 4, 5. As of December 31, 2018, Romgaz held in the account of the Sole Register of Greenhouse Gas Emissions a number of 279,103 CO2 certificates. Romgaz acquired as linking availability (availability of EUA – ERU certificates correlation) a number of 51,598 ERU certificates available to be used for conformity during 2013 – 2020. According to Decision No.1096 of December 17, 2013 for the approval of provisional free allocation of greenhouse certificates to electricity producers during 2013-2020, as operator, Romgaz received CO2 certificates, as follows: Operator Installation SNGN Romgaz SA SNGN Romgaz SA - CTE Iernut 2013 2014 Annual allocation (tCO2/year) 2015 2016 2017 2018 2019 2020 962,085 824,645 687,204 549,763 412,322 274,882 137,441 -  based on the recommendations made by the Due Diligence Study, performed with the aim of establishing the conformity level of the company to the environmental legislation in force, identification of past and present environmental issues, as well as future environmental risks the company may face, a Report on Significant Environment Issues Remediation was prepared whereby costs, solutions and implementation terms for remedy measures were assumed. In 2018, Romgaz continued to monitor the implementation of permanent measures and of multiannual implementation terms measures contained in the Remediation Report (maintaining the perchloroethylene consumption below 1 ton/year for each location so that the provisions of Government Decision no. 699/2003 on setting measures to reduce emissions of volatile organic compounds due to use of organic solvents for specific activities and installations, locating industrial objectives at sufficient distance from the protected receptors; reducing fugitive emissions in the area of calibration tanks, of metal tanks and of concrete tanks for temporary storage of reservoir water by equipping the tanks with ecological dispersion systems, periodic payment to the “Closing Fund” until the set value of provision is met for the specific waste storage at Ogra, annual monitoring frequency for Dumbravioara drilling waste storage closed in 2003, etc.); Page 33 of 80 2018 Consolidated Board of Directors’ Report  scheduling and organizing the environmental internal inspection, in order to verify the conformity with legal requirements applicable to inspected activities. In 2018, 46 environmental internal inspections were scheduled and performed from Romgaz headquarters on authorized units of the branches, further to which 16 Reports of Determined Nonconformity were made, out of which 11 were closed within assumed time limit, 5 open (within assumed time limit). Also, Romgaz’s activity complies with the applicable environment legal requirements, in 2018 the degree of fulfilment identified further the application of an evaluation method was 98.77%, this representing a very good value indicating a potential of improvement;  assessment of conformity level to environmental protection requirements and contractual requirements of contractors and sub-contractors of drilling works contracted by Romgaz in 2018;  implementation of the 2018 action/measure programs for prevention and/or minimization impact on the environment, that were implemented as follows: landslide fighting; modernization of reservoir water storage tanks; installing waste water collection tanks; transforming abandoned wells into reservoir water injection wells and so on. In 2018, the Environmental Guard and the Water Basin Administrations made 70 inspections at Romgaz locations. Following such inspections, the company paid fines of RON 75,000 due to:  accidental pollution with oil products (emulsion) into Mures river, on April 13, 2018. The incident did not cause fishing mortality, all subsequently measures imposed by the authorities being implemented. Also, due to this ecological hazard, the company paid the expenses in the amount of RON 183,200 related to operations of depollution of Mures river performed by Apele Romane;  non-compliance with legal requirements regarding the authorization of activities submitted for environment permitting on July 20, 2018 when National Environment Guard of Harghita County was notified over the incident occurred at well 25 Chedea. By the time of the inspection performed by authorities, well 25 Chedea was not included in the environment permit, being put into function in 2017. Therefore, the company paid a fine in the amount of RON 30,000 (RON 15,000 paid in 48 hours). During 2018, the competent state institutions, namely the Territorial Labour Inspectorates made 3 inspections. No deficiencies were noted. Individual protection equipment was acquired, based on the framework agreements and subsequent contracts, for all the employees of the company. Also, a number of 3,985 influenza vaccine doses were acquired, in accordance with the demand of the branches/headquarters. According to the Collective Labour Contract, voluntary health insurance services were acquired, of supplementary type, for all the employees. The contract for voluntary health insurance services concluded by the company expired on December 27, 2018 and by the date of this report no contract has been signed. Page 34 of 80 2018 Consolidated Board of Directors’ Report The summarized breakdown of litigations where Romgaz is involved as of December 31, 2018 is the following:  385 litigations, out of which:  313 cases where Romgaz is plaintiff;  64 cases where Romgaz is defendant;  8 cases where Romgaz is civil party/injured party;  The (approximate) total value of the files where Romgaz is plaintiff amounts RON 2,140,374,680.21;  The (approximate) total value of the files where Romgaz is defendant amounts RON 305,769,187.06 and EUR 60,000;  The (approximate) total value of the files where Romgaz is civil party amounts RON 286,345,970.55. The detailed list of litigations is shown in Annex 2 of this Report. Page 35 of 80 2018 Consolidated Board of Directors’ Report The occurrence and thereafter the development and gradual diversification of what was truly going to be the Romanian natural gas infrastructure has an important benchmark, year 1909, when the first gas reservoir was discovered by drilling well 2 Sarmasel (Mures county). During the immediately following years, a gas infrastructure unique in Europe for those times started to outline at a reduced scale, consisting of the following assets:  gas transmission pipeline, the first of this kind in Europe, build in 1914, connecting towns Sarmasel and Turda (Cluj county), and  gas compressor station from Sarmasel; build in 1927- the first one in Europe. It is notable that the country’s large gas structures were discovered after 1960 and in parallel, a complex infrastructure started to be developed at national scale dedicated exclusively to the gas extraction process and later to the injection and underground storage process. These large gas structures located in the Transylvanian basin supply even today considerable gas quantities. The infrastructure related to field production and to gas storage in depleted fields turned into underground storages, looks today as a particularly complex system. As a whole, the infrastructure of the company developed continuously before and after 1989. The development of the production capacities reached the peak during 1970–1980 when the annual production was extremely high, both due to the consumption demand and to the considerable reservoir energy of most of the discovered gas fields. Part of the company’s production infrastructure (assets) resulted from the nationalisation of June 1948. Currently, no natural or legal person, from the country or from abroad, claimed any asset of Romgaz. Although operational, most of the production facilities are several decades old, therefore, a rehabilitation and modernisation process started a few years ago consisting of installing, replacing or upgrading gas delivery/take over fiscal panels, gas dehydration stations, gas compressor stations. The production facilities relating to the company’s infrastructure are: 1. Gas wells (currently producing wells, temporarily suspended wells waiting for reactivation or recompletion operations, wells for reservoir water injection); 2. Pipelines (gathering pipelines connecting the well clusters, waste water pipelines, industrial water pipelines); 3. Gas heaters (radiators); 4. Gas separators (underground separators, surface separators); 5. Flow metering panels (technological flow metering panels for almost every gas field, fiscal or commercial flow metering panel located at the interface with the NTS); 6. Gas dehydration stations (conditioning): 7. Gas compression units: - low capacity portable compressors installed at the well head or at the cluster, • booster compressors for one or more fields, and Page 36 of 80 2018 Consolidated Board of Directors’ Report • gas compressor stations, usually consisting of two or more units, intermediate or final compressor stations (outlet to the NTS); 8. Industrial or reservoir water pumping stations; 9. Other facilities (buildings, workshops, electric lines, well access roads etc.). Production facilities are used at their maximum capacity (close to 100%). Currently, 154 gas fields are producing out of which 147 are well defined blocks and the rest of 7 are blocks with experimental production. Production from these fields is made by approximately 3240 wells and by almost the same number of technological surface facilities consisting of flowlines, heaters (where the case may be) liquid separators and gas flow metering panels. From the total number of wells, 26% of the wells produce at depths below 2,000 m. Pressure and flow limits of production wells are operated by 127 compressor units, of which 93 units are grouped in 20 compressor stations, and 17 units are the so-called booster compressors, located near well clusters. One technical demand required by applicable laws is the quality of gas which is fulfilled in proportion of 100% by means of 74 gas dehydration stations. The other component of the company’s infrastructure, namely the information – technical system consists of all information equipment and programs (software) used to monitor the parameters related to gas research, production and storage activities. Depogaz holds Licence No. 1942/2014 for the operation of 6 underground natural gas storages facilities, developed in depleted gas fields, whose aggregate capacity represents about 90.3 % of the total storage capacity of Romania. The capacity of the underground storage facilities operated by Depogaz, by storages, is presented in the table below: Storage Active capacity Mil.St.m3/cycle 50 TWh/cycle 0.545 1,310 30 150 900 360 2,800 14.326 0.315 1.634 9.598 4.016 30.466 Bălăceanca Bilciureşti Cetatea de Baltă Gherceşti Sărmăşel Urziceni TOTAL Balaceanca Storage Withdrawal capacity GWh/day 13.18 152.78 1.05 21.40 79.03 50.16 317.60 Injection capacity GWh/day 10.98 109.13 0 21.40 68.50 33.44 243.45 Balaceanca Storage facility is located at approximately 4 km from Bucharest. The fixed assets contributing to the storage process are as follows:  24 wells;  surface infrastructure including:  Balaceanca gas compressor station;  8.4 km gathering pipelines;  4 separators;  4 technological gas metering facilities; Page 37 of 80 2018 Consolidated Board of Directors’ Report  1 gas dehydration station;  15 gas heaters;  communication system and fiber-optic data acquisition system;  1 bi-directional fiscal metering system. Bilciuresti Storage Bilciuresti Storage facility is located in Dambovita County, approximately 40 km V-NV from Bucharest. The fixed assets contributing to the storage process are as follows:  61 wells;  surface infrastructure including:  Butimanu gas compressor station;  7 gas dehydration stations;  26.5 km gathering pipelines for 61 wells;  50 gas heaters;  24 separators;  14 gas metering facilities;  37.5 km gathering pipelines;  bi-directional fiscal metering system;  waste water injection station. Cetatea de Balta Storage*) Cetatea de Balta Storage facility is located at approximately 12 km S-V from Tarnaveni. The fixed assets contributing to the storage process are as follows:  16 wells;  surface infrastructure including:  6.640 km pipelines for 16 wells;  9.375 km gathering pipelines;  6 technological gas metering facilities,  6 separators,  field supervision system and online gas chromatograph;  fiber-optic data acquisition system. *)In 2012 the storage study for Cetatea de Balta confirmed the gas migration from Sarmatian III to adjacent Sarmatian I, Sarmatian II, Sarmatian IV and Buglovian V reservoirs, which lead to ceasing the storage activity, with the approval of ANRM. As of January 1, 2019, with the approval of ANRM, Romgaz resumed the exploitation of the existent resources form Sarmation III reservoir of Cetatea de Balta commercial field, in this respect all necessary steps have been initiated in order to take-over the assets and personnel from Depogaz. Ghercesti Storage Ghercesti Storage facility is located in Dolj County, near Craiova. The fixed assets contributing to the storage process are as follows:  85 wells;  surface infrastructure including:  135.7 km gathering pipelines for 85 wells;  22.6 km gathering pipelines;  13 separators; Page 38 of 80 2018 Consolidated Board of Directors’ Report  12 technological gas metering facilities;  1 gas dehydration station;  communication system and fiber-optic data acquisition system;  bi-directional fiscal metering system. Sarmasael Storage Sarmasel Storage facility is located near Sarmasel, approximately 35 km NW from Tirgu- Mures, 35 km north from Ludus and 48 km east from Cluj-Napoca. The fixed assets contributing to the storage process are as follows:  63 wells;  surface infrastructure including:  Sarmasel gas compressor station;  26.7 km gathering pipeline for 63 wells;  13.8 km gathering pipelines;  59 separators;  bi-directional fiscal metering system. Urziceni Storage Urziceni Storage facility is located in Ialomita County approximately 50 km NE from Bucharest The fixed assets contributing to the storage process are as follows:  32 wells;  surface infrastructure including:  Urziceni gas compressor station;  19.5 km of gathering pipelines for 32 wells;  3.3 km gathering pipelines;  6 technological gas metering facilities;  28 gas heaters;  1 gas dehydration station;  optic fibre data acquisition system;  bi-directional fiscal metering system. Well workover, capital repairs and well production tests represent all the services performed with workover rigs, as well as equipment for specific support operations such as: cement plug drilling installations, mud tank equipped with agitator, sand control-sand blender, DST- cased hole testing of productive layers, shale shaker, mud pumps. Special Well Operations are performed with the following equipment: cementing unit, slickline, wireline, coiled tubing unit, liquid nitrogen converter, liquid nitrogen tank truck, cement container, filter unit, equipment for discharge and measurement with two-phase separation, equipment fir discharge and measurement with three-phase separation, equipment for tubing investigation, echometer, rental of tools and utilities, tubing cutting, packer assembling device, hydraulic packer recovery tools, technical assistance for special well operations, well fire- fighting equipment. Future well workover and special well operations are required in order to stop production decline, due to the large number of works developed in the past. Page 39 of 80 2018 Consolidated Board of Directors’ Report The car fleet of STTM consists of 670 vehicles and machinery and 79 trailers, as follows:  Passenger carriers: cars (99), land vehicles (106), minibuses (12), buses (2) and large buses (2);  passengers and cargo carriers < than 3.5 t (133) and namely > than 3.5 t (82);  vehicles for cargo transportation: dumpers (21), cesspit emptier (40), platform trucks (19), tank trucks (3);  vehicles for heavy transportation: truck-tractors (3) and semitrailer trucks (11);  handling machinery: cranes from 12-18 t (2) and 24-35 t (20);  other special vehicles: mobile laboratory for equipment testing and checking (1);  heavy machinery: bulldozers (8), caterpillar shovels (2), wheel loaders (15), motor grader (3), compactor (3), front end loaders (10);  other machinery: tractor trucks (70), fork lift trucks (4) etc.;  other vehicles: trailers for heavy transportations, trailers and semitrailers (79). STTM plans to ensure qualitative and economically efficient services due to the future dynamics of Romgaz core business over the medium term (approximately 5 years). Considering the dynamics of the gas exploration – production activity developed by Romgaz, in order to achieve the object of activity for a medium term (approx. 5 years) the perspective to develop STTM must be realized by permanent determination of methods and measures resulting from the provision of quality services and in terms of economic efficiency. CTE Iernut has an installed capacity of 600 MW, including 4 power units: 2 Czechoslovakian power units with an installed capacity of 100 MW each and 2 Soviet power units with an installed capacity of 200 MW each. The units were commissioned between 1963 and 1967. The power plant is connected to the main road E60 by a 1.5km long road and to the national railway system at Cuci by a 2 km railway both owned by the CTE Iernut. Operating restrictions imposed by applicable environmental regulations The 100 MW Power Units 1 and 4 During 2013, by commissioning a flue gas recirculation system for boiler 1 and 4, NOx emissions were reduced from 800 mg/Ncm flue gas to 300 mg/Ncm, complying therefore with environmental regulations. In compliance with the integrated environmental authorization for CTE Iernut, Power Units 1 and 4, with an installed capacity of 100 MW each, may operate on a transition period until June 30, 2020. The maximum NOx emissions must be reduced from 300 to 100 mg/Ncm flue gas within this period. If this last measure is not taken, the units will not be allowed to operate after June 30, 2020. The 100MW Power Units 2 and 3 Change of environment protection legislation, namely Directive 2010/75/EU allow limited time of operation for Power Units 2 and 3 in case the emission reduction equipment of one or more groups break down and power supply is a priority requirement. Therefore, as of January 2016, Page 40 of 80 2018 Consolidated Board of Directors’ Report units 2 and 3 were applied a dry preservation regime. As of February 20, 2019, Power Units 2 and 3 had been excluded from CTE Iernut. The 200MW Power Units 5 and 6 Low NOx emission burners have been installed in years 2010 and 2011. As such, an environmental requirement included in the integrated environmental authorization was fulfilled. The measure was fulfilled in time. Due to these measures, the power units automatically enter the new transition period established during January 1, 2016 - December 31, 2020. Investments play an important part in maintaining the production decline, which is achieved by discovering of new reserves, by improving the current recovery rate, and by rehabilitation, development and modernization of existing facilities. In 2018, Romgaz invested RON 1,188.5 that is 52% (RON 406.8) higher than 2017 investments, representing approx. 77% from the scheduled investments. The company invested during 2014 – 2018 approximately RON 4.45 billion, as follows: Year 2014 2015 2016 2017 2018 Total Amount (RON thousand) 1,085,497 937,916 497,716 781,768 1,150,349 4,453,246 For 2018, Romgaz provided the achievement of an investment program with a total budget of RON 1,500.00 million, based for the most part on objectives related to the compensation of natural decline and electric power generation, thus:  continuing geological research works by performing surveys and drillings for the discovery of new gas reserves;  production development potential by adding new facilities on existing structures (drilling exploration wells, surface technological installations, drying stations, compressor stations, compression in gas fields), improving the performance of facilities and equipment to increase production safety, reducing energy consumption and efficiency of optimal exploitation of gas fields;  modernization and upgrading of constructions, installations and equipment, as well as acquisition of new equipment and performing installations specific for core activity;  acquisition of specific machinery to ensure the technological transportation and maintenance of core activity and maintaining optimal use of road infrastructure in gas fields. In absolute figures, the investment cost on December 31, 2018 were in amount of RON 1,150,349, representing:  147.15% as compared to the achievements for 2017  76.69% of the scheduled level The investments were financed as follows: - from own sources and sources obtained from the National Investment Plan (approx. 22% from the eligible expenditures) for “The Development of CTE Iernut Power Plant by building a new combined cycle CCTG power plant”; and Page 41 of 80 2018 Consolidated Board of Directors’ Report - exclusively from own sources for the other approved investment objectives. Regarding the physical achievements related to the analysed period, the objectives started the previous year were achieved, preparation activities were carried out (design, obtaining lands, approvals, agreements, authorizations, acquisitions) and began the execution for a part of new objectives and were performed modernisation works and recompletions for wells in operation. The value of fixed assets commissioned during the reporting period was RON 299.9 million. The table below shows the investments made in 2018, by investment chapters, as compared to those scheduled and accomplished in 2017: Item No. 0 1. Investment chapter 1 Investments in progress – total, out of which: 1.1 Natural gas exploration, production works 1.2 Maintaining UGS capacity 1.3 Environment protection works 2017 2 320,056 316,719 2,281 1,056 *RON thousand* % 2018 Schedule 3 Result 4 874,929 874,534 771,449 771,063 ’18/’17 5=4/2x10 0 241.04 243.45 0 0.0 0 395 2. New investment – total, out of which: 230,409 269,534 166,990 2.1 Natural gas exploration, production works 221,980 262,209 162,606 2.2 Maintaining UGS capacity 2.3 Environment protection works 7,480 949 2,980 4,345 Investment in existing tangible assets 186,234 233,881 386 2,980 1,404 156,228 55,424 258 36.55 72.48 73.25 39.84 147.95 83.89 129.69 11.05 42,735 2,334 99,797 21,859 781,768 1,500,000 1,150,349 147.15 3. 4. Equipment (other acquisition of tangible assets) 5. Other investment (studies, licenses, software, financial assets etc.) * TOTAL The chart below shows the investments for 2018: 0.26% 0.16% 13.58% 56.00% I. Geologic exploration for discovery of new gas reserves 4.82% II. Exploitation of gas fields, infrastructure and utilities, electric power generation III. Underground Gas Storage IV. Environment Protection 25.16% V. Upgrading and modernisation of constructions, installations and equipments VI. Independent equiment and machinery Page 42 of 80 2018 Consolidated Board of Directors’ Report The summary of the achieved investment projects is shown below: Item No. 1. Drilling, exploration 26 wells Main Projects Planned Achieved 17 completed wells; 4 wells in progress; 5 wells with performance contract; 1 well in acquisition for drilling works; 36 wells with completed technical design, in course of obtaining the approvals, lands and organisation of drilling procurement procedure; 58 wells in design or design acquisition; 2. Drilling design - 3. Performance of exploration 3 wells 3 completed wells; drilling 4. Performance of technological installations – at shut-in wells Construction of 24 technological installations for bringing in production 37 shut-in wells 5. Maintaining storage • capacity 6. Wells recompletions, re- equipment and reactivation Urziceni Storage - gas cushion - modernization for 10 underground storage wells Butimanu Storage - modernization of compressor automation cabinets - adaption of technological installations to module 1 and 2 - construction of access roads and squares for 5 underground storage wells -acquisition of pressure calibrators Interventions for approx.111 wells, correlated with the 12 technological installations completed for the putting into production of 15 wells; 6 technological installations operating for the putting into production of 6 wells; 1 technological installation, ongoing procurement procedure to perform the putting into production of 1 well; 12 technological installations to connect 16 wells; approvals/lands/agreements/authorizations are in course of obtaining; elaborating technical designs for surface installations for connecting 13 wells - 100 % completion As of April 1, 2018, Filiala de Inmagazinare Gaze Naturale Depogaz Ploiesti SRL became operational. It took the operating activity of underground storages under concession of S.N.G.N. Romgaz S.A., thus the activity of Ploiesti Branch was suspended. In 2018, well recompletions and reactivation works were performed for a total of 130 wells (80 wells at Medias Branch and 50 wells for Tg. Mures Page 43 of 80 2018 Consolidated Board of Directors’ Report 7. Electric power generation 8. Partnerships/Associations annual program agreed by ANRM Continuing works at CTE Iernut Raffles Energy SRL - re-testing Voitinel 1 well - elaboration of Feasibility Study on the technical solution of natural gas trading Lukoil - preparation of drilling for exploration well 1 Trinity 1X in Block 30EX Trident; - geological and geophysical studies Amromco - drilling 3 wells; - recompletion operations for 6 wells - - abandonment works for 5 wells Slovacia - drilling 1 exploration well in Cierne, Block Svidnik; -renewal of supply licence; - geological and geophysical studies. Branch), works performed in-house by S.I.R.C.O.S.S. Continuing Execution Contract the performance of the Completed All the necessary approvals to elaborate the Feasibility Study on the technical solution of natural gas trading in Block EIII-1 trading Brodina were obtained. The company Geoclass was assigned to elaborate this study in 2019. - obtaining the extension of the drilling period with 3.5 years, until October 3, 2021; - preparatory works for drilling, drilling to start in 2019. - recompletion operations for wells 121 Frasin Brazi and 51 Vladeni, and had positive resulted, such as RK works at well 204 Bibesti, and had negative results; it was decided to abandon the well; - drilling of A1 Frasin Brazi well was completed, teste negative, thus motivating the well abandonment decision in the drilling stage; - 5 wells were plugged and abandoned, such as: A1 Frasin Brazi, 204 Bibeşti, 37 Zătreni, 57 Vladeni and A1 Gura Sutii. - preparations for drilling well 1 Cierne, Block Svidnik; the well will be drilled in 2019. Development of CTE Iernut One of Romgaz main strategic directions, provided in “The Development Strategy for 2015- 2025”, is consolidation of the company’s position on the energy supply markets. In this case, in the field of electric power generation, Romgaz proposed “a more efficient activity by making investments to increase the efficiency of the Thermoelectric Plant (CTE) Iernut to a minimum of 55%, respecting the environmental requirements (NOx, CO2) and increasing the exploitation safety”. Page 44 of 80 2018 Consolidated Board of Directors’ Report Thus, a very important objective is the “The Development of CTE Iernut Power Plant by building a new combined cycle CCTG power plant”, with a deadline for completion in Q 1, 2020. In 2018 the following works were performed:  Land clearing/development by buildings demolition;  Approach and marginal road development;  Storage platform development (site management);  Platform construction works for indirect foundations performance (piles);  Beginning the works to perform the direct foundations for engine room, electric and command building, equipment and machinery;  Supplying 3 gas turbines, 4 generators for gas turbines, 2 generators for steam turbines, steam boilers for the three gas turbines, steam sealing systems for steam turbines, DCS cabinets, 6 transformers, nitrogen fire fighting systems, overhead travelling cranes, dual operation valve, as well as different equipment serving the electric power plant were supplied in situ;  metal furniture for the execution of engine room was delivered in situ;  fillings for the floor completion at ground ±0.00 (block start) were performed and the piles of the metal structure for the engine room are asembled;   inside the pump station building, the intake pipe was completed and the steel concrete floor for ground ±0,00 was poured; inside the engine room the assembly of the metal structure was completed as well as the foundations for machinery and equipment. One very complex issue largely impacting on the implementation of the investment plan is found in the investment preparation phase and consists of obtaining land permits, approvals, agreements and authorizations required for the performance of works and for the procurement phase. The results was negatively influenced by causes specific for both phases, namely: - Difficulty to perform the drilling activity regarding access to public roads; - - Impossibility to obtain lands and implicitly, approvals and construction permits for well surface facilities and gas collectors; It was necessary to resume the procurement procedure for different objectives, due to the lack of technical offers; - Long time interval to obtain the approvals and agreements issued by water, environment, property register, agricultural related bodies, with direct effects upon the issuance of the construction authorization for the execution of surface facilities; - Delays in the public procurement processes due to repeated dismissals by ANAP of certain award documentations (I.T. Prahova and Ialomița lots). The completion degree in relation to the work programs for each partnership is indicated below (RON million): Ite m No. 1 Partnership/Association 2018 Schedule 2018 Results Results/ Schedule Romgaz, Alpine Oil&Gas and JKX Oil&Gas - Slovacia 3,937.00 291.62 7.41% Page 45 of 80 2018 Consolidated Board of Directors’ Report 2 3 4 * Romgaz and Aurelian (currently Raffles) Romgaz and Amromco Romgaz, Lukoil and PanAtlantic Total work program 924.26 22,518.92 3,939.00 31,319.22 122.74 20,251.92 2,830.30 23,767.94 13.28% 89.94% 71.85% 75.89% Important issues to be noted:  In Block EX-30 Trident, works from Stage I (3 years) mandatory and Stage II (2 years) optional were completed, and currently the additional period of Exploration Stage II, for the period between May 3, 2018 – May 3, 2020 are performed. This extension is necessary to perform and reinterpretation/integration of geological and geophysical data available until now. In Block EX-30 Trident two wells were drilled, Daria-1x and Lira-1X, where Lira-1X was considered discovery with natural gas (approximately 30 billion m3). reprocessing works, additional complex analyses core After the Notification of Withdrawal of PanAtlatic, Romgaz EGMS approved to take over free of charge 2.2% from the share owned by PanAtlantic. Thus, as of March 2018 Romgaz share in Block EX 30 Trident is 12.2%. Further to the Feasibility Study performed in 2018, the locations to drill in 2019 a new exploration well were established and two appraisal wells depending on the success of the first well, one well in 2020 and one well in 2021. In 2018 preparatory works were performed for the drilling phase: Geohazard assessments, geomechanical modelling, pore-pressure analyses, obtaining approvals and permits necessary to drill the wells, contracting the main works for the drilling campaign in 2019; signing the Confidentiality Agreement with SNTGN Transgaz Medias; drafting of a Cooperating Agreement between Transgaz – Lukoil – Romgaz started in December (Partnership: Romgaz, Lukoil and PanAtlantic).  In 2018, the partner JKX withdrew from the partnership, and after the withdrawal Romgaz took over an additional share of 8.33%. Also, in 2018 Romgaz waived Block Snina and Medzilaborce and reduced Block Svidnik are to a surface of 36.4 km2. In 2018, there were only seismic interpretation works, geological works to a lesser extent and otherwise there were only general and administrative expenditures for this project (Partnership: Romgaz, Alpine Oil&Gas şi JKX Oil&Gas – Slovakia)  The Association Agreement with Schlumberger expired in 2018. In 2013, Schlumberger expressed its intention to extend the contractual period with another 10 (ten) years, until 2028. Following this requirement, Romgaz performed an economic analysis resulting that in terms of maintaining the investments for Laslaul Mare Field, the activity being more profitable if Romgaz continues its activity outside the association. Under these conditions, the Association Agreement was not extended. It expired on October 30, 2018. In 2018, Depogaz Subsidiary had an approved investment plan of RON 48,975 thousand and achieved investments of RON 38,155 thousand, representing 75%, thus: Description Schedule Results Item No. 1. Underground gas storage activities Environment protection and improvement 2. 3. Modernisation and upgrading of installations and equipment, 4. 5. surface facilities, utilities Independent equipment and machinery Costs with consultancy, studies and projects, softs, licences and patents etc. 3.992 20 41.502 1.879 1.582 2.413 20 34.866 581 309 Page 46 of 80 2018 Consolidated Board of Directors’ Report * TOTAL 48.975 38.189 The investments were financed entirely from own sources. For the reporting period the fixed assets were commissioned in amount of RON 26,692 thousand. The main objectives included in the Investment Program for 2018 were:  modernization of Bilciureşti Storage Facility: to ensure a higher safety degree when exploring and upgrading the existent infrastructure of Bilciuresti Storage facility, in 2016 a Feasibility Study was completed on the modernisation of Bilciuresti Storage facility infrastructure. This study highlighted the possibility to increase the daily production capacity of Bilciuresti Storage up to 20 million m3/day, provided to perform gradual investment works. In 2018 the first modernisation stage was completed, namely the modernisation of the drying station of Group 57 Bilciuresti (the works began in 2017 and was completed in 2018) and the second stage started during 2018;  well modernisations: the works are necessary due to poor well performances in the process of injection/withdrawal affecting the daily injection capacity and, especially, the daily withdrawal capacity of the underground storages. Also, equipping with safety valves improved the operational safety. Page 47 of 80 2018 Consolidated Board of Directors’ Report Government Decision No. 831/20109 approved “the sale by secondary initial public offering of shares representing 15% of S.N.G.N. Romgaz S.A. share capital by the Ministry of Economy, Trade and Business Environment, through the Office Ownership and Privatization in Industry”. On November 12, 2013, the company was listed on the Bucharest Stock Exchange (BSE) and on London Stock Exchange (LSE). As of this date, the shares of the company have been traded on the regulated market governed by BSE under the symbol “SNG”, and on the regulated market governed by LSE as GDRs issued by The Bank of New York Mellon (1 GDR = 1 share) under the symbol “SNGR”. No. Description 2013 2014 2015 2016 2017 2018 1. Number of share (x1000) 2. Market capitalization10 *million RON *million EUR 3. Maximum price (RON) 4. Minimum price (RON) 5. Year end price (RON) 6. Net profit per share (RON) 7. Gross dividend per share (RON) 385,422.4 385,422.4 385,422.4 385,422.4 385,422.4 385,422.4 13,178 2,952 14,018 3,127 10,483 2,315 35.60 33.80 34.19 2.58 2.57 36.37 32.41 35.36 3.66 3.15 36.55 26.30 27.20 3.10 2.70 9,636 2,122 27.55 21.60 25.00 2.66 5.76*) 12,064 2,589 33.95 25.10 31.30 4.81 6.58**) 10.714 2.297 38.20 27.80 27.80 4.81 4.17***) 8. Dividend yield (7./5.x100) 7.52% 9. Exchange rate (RON/EUR) 4.4639 8.91% 4.4834 9.93% 4.5285 23.04% 21.02% 15.00% 4.5411 4.6597 4.6639 *) The gross dividend per share of RON 5.76 is composed of the gross dividend per share for financial year 2016 in amount of RON 2.40/share, and the additional gross dividend of RON 1.42/share resulted from the distribution of retained earnings and the additional gross dividend of RON 1.94/share assigned under the provisions of Article II and III of the Government Emergency Ordinance No.29/2017, distributed from the company’s reserves, representing own financing sources. **) The gross dividend per share of RON 6.85 is composed of the gross dividend per share for financial year 2017 in amount of RON 4.34 per share, and the additional gross dividend of RON 0.65 share resulted from the distribution of retained earnings and the additional gross dividend of RON 1.86 share assigned under the provisions of Article II and III of the Government Emergency Ordinance No. 29/2017, distributed from the company’s reserves representing own financing sources. ***) the proposed gross dividend is 4.17 RON/share consits of: 3.15 RON/share related to the profit of 2018, 0.08 RON/share related to the retained earnings and 0.94 RON/share according to GEO no.114/2018 For 2018, the shares and GDR-s prices on BSE and LSE oscillated significantly, recording the highest difference between the minimum and maximum annual value since the company’s listing date, namely RON 10.40 on BSE and USD 4.10 on LSE. The average annual trading share price was RON 34.59 and GDR’s price was USD 8.68. 9 GD No. 831 of August 4, 2010 on the approval of the privatisation strategy by public offering of Societatea Naţionala de Gaze Naturale “Romgaz” – S.A. Mediaş and of the mandate of the public institution implied in the development of such process. 10Calculated based on the closing price on the last trading day of the that year, namely based on the exchange rate as communicated by the National Bank of Romania and applied for the last trading day of that year. Page 48 of 80 2018 Consolidated Board of Directors’ Report For the regulated market governed by BSE, the maximum trading share price that Romgaz recorded on March 27, 2018 (RON 38.20), after publishing the announcement on the dividend proposal for 2017. For the following period, the evolution of the share price oscillated, with significant decreases for the following four moments: (1) after publishing the Report for Q1 2018 (May 15, 2018), highlighting the decrease of income as a consequence of a warmer winter, (2) on the ex-date related to dividends for 2017 (July 5, 2018), (3) after the first publication by the Ministry of Public Finances of a government draft on the capping of the maximum gas sales price from internal production (July 19, 2018) and (4) after the publication of the Emergency Ordinance No. 114.2018 on establishing fiscal, budgetary and public investment measures, amending and supplementing some pieces of legislation and extending some deadlines. (December 18, 2018). The year-end characterised by a pronounced decrease of the share price (-24.66% for the period December 18 – December 31, 2018) determined both by the approval of GEO No. 114/2018, as well as by the ex-date for additional dividends. Thus, on December 31, 2018, the share price reached the minimum limit of the year, namely RON 27.80, by 22% lower than the prices recorded on the first trading day of 2018. The same oscillating evolution recorded the trading price of GDRs in 2018, with maximum and minimum values similar to the shares. The highest prices recorded during April 27 – April 10, 2018, reaching the maximum value on the last day: USD 10.10/GDR. The most pronounced decreasing period was at the end of the year, when for 4 days (between December 19 – December 24, 2018) the GDRs price decreased by 32.24%, the annual minimum being of USD 6/GDR, reached on December 24, 2018. Until the last day of 2018, the GDRs’ price recovered from the decline (+16.67%) on December 31, 2018 being USD 7, by 11.4% higher than the price recorded on the first trading day. Since the listing day up to present, Romgaz is considered an attractive company for investors and holds a significant position in the top of local issuers, being included in BSE indices by the end of the year, as follows: - Second place, by market capitalization, in the top of Premium BSE issuers. With a market capitalization amounting to RON 10,714.7 million (respectively EUR 2,297.4 million) as of December 31, 2018, Romgaz is the second largest listed company in Romania, being preceded by OMV Petrom with a capitalization of RON 16,936 million, namely EUR 3,631 million; - Fourth place as regards the total amount of transactions in 2018, in the top of local issuers in the main segment of BSE (RON 1,058 million), according to Banca Transilvania, Fondul Proprietatea and BRD; - Weight of 11.69% and 10.82% in BET index (top 15 issuers) and namely BET-XT index (top 25 issuers), 29.98% in BET-NG index (energy and utilities) and 12.31% in BET-TR index (BET Total Return). Performance of Romgaz shares between listing and December 31, 2018 to the BET index, is shown below: Page 49 of 80 2018 Consolidated Board of Directors’ Report 45.00 40.00 35.00 30.00 e r a h s / N O R 25.00 20.00 15.00 10.00 5.00 0.00 3 1 0 2 / 2 1 / 1 1 3 1 0 2 / 8 1 / 2 1 . 4 1 0 2 1 0 1 3 . . 4 1 0 2 3 0 0 1 . 4 1 0 2 / 5 1 / 4 . 4 1 0 2 5 0 9 2 . . 4 1 0 2 7 0 7 0 . 4 1 0 2 / 2 1 / 8 . 4 1 0 2 9 0 2 2 . . 4 1 0 2 0 1 8 2 . . 4 1 0 2 2 1 4 0 . 5 1 0 2 / 9 1 / 1 5 1 0 2 / 4 2 / 2 5 1 0 2 / 1 / 4 5 1 0 2 / 4 1 / 5 5 1 0 2 / 3 2 / 6 5 1 0 2 / 9 2 / 7 5 1 0 2 / 4 / 9 5 1 0 2 / 2 1 / 0 1 5 1 0 2 / 7 1 / 1 1 5 1 0 2 / 0 3 / 2 1 6 1 0 2 / 8 / 2 6 1 0 2 / 5 1 / 3 6 1 0 2 / 0 2 / 4 6 1 0 2 / 7 2 / 5 6 1 0 2 / 5 / 7 6 1 0 2 / 0 1 / 8 6 1 0 2 / 6 1 / 9 SNG 6 1 0 2 / 4 2 / 0 1 6 1 0 2 / 9 2 / 1 1 BET 7 1 0 2 / 1 1 / 1 7 1 0 2 / 7 1 / 2 7 1 0 2 / 7 2 / 3 7 1 0 2 / 4 / 5 7 1 0 2 / 4 1 / 6 7 1 0 2 / 0 2 / 7 7 1 0 2 / 8 2 / 8 7 1 0 2 / 3 / 0 1 7 1 0 2 / 8 / 1 1 8 1 0 2 / 7 / 3 8 1 0 2 / 0 3 / 1 8 1 0 2 / 7 1 / 4 8 1 0 2 / 4 2 / 5 8 1 0 2 / 3 / 7 8 1 0 2 / 8 / 8 7 1 0 2 / 8 1 / 2 1 8 1 0 2 / 4 1 / 9 8 1 0 2 / 2 2 / 0 1 8 1 0 2 / 7 2 / 1 1 10000.00 9000.00 8000.00 7000.00 6000.00 5000.00 4000.00 3000.00 2000.00 1000.00 0.00 Performance of GDRs traded on the London Stock Exchange and RON/USD exchange rate movements are shown below: 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 R D G / D S U 3 1 0 2 / 2 1 / 1 1 3 1 0 2 / 8 1 / 2 1 . 4 1 0 2 1 0 1 3 . . 4 1 0 2 3 0 0 1 . 4 1 0 2 / 5 1 / 4 . 4 1 0 2 5 0 9 2 . . 4 1 0 2 7 0 7 0 . 4 1 0 2 / 2 1 / 8 . 4 1 0 2 9 0 2 2 . . 4 1 0 2 0 1 8 2 . . 4 1 0 2 2 1 4 0 . 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 D S U / i e l 5 1 0 2 / 9 1 / 1 5 1 0 2 / 4 2 / 2 5 1 0 2 / 1 / 4 5 1 0 2 / 3 1 / 5 5 1 0 2 / 2 2 / 6 5 1 0 2 / 8 2 / 7 5 1 0 2 / 3 / 9 5 1 0 2 / 9 / 0 1 5 1 0 2 / 6 1 / 1 1 5 1 0 2 / 9 2 / 2 1 6 1 0 2 / 5 / 2 6 1 0 2 / 4 1 / 3 6 1 0 2 / 0 2 / 4 6 1 0 2 / 7 2 / 5 6 1 0 2 / 6 / 7 6 1 0 2 / 1 1 / 8 6 1 0 2 / 0 2 / 9 6 1 0 2 / 6 2 / 0 1 6 1 0 2 / 5 / 2 1 7 1 0 2 / 7 1 / 1 7 1 0 2 / 3 2 / 2 7 1 0 2 / 1 3 / 3 7 1 0 2 / 2 1 / 5 7 1 0 2 / 2 2 / 6 7 1 0 2 / 8 2 / 7 7 1 0 2 / 5 / 9 7 1 0 2 / 1 1 / 0 1 7 1 0 2 / 6 1 / 1 1 7 1 0 2 / 8 2 / 2 1 8 1 0 2 / 7 / 2 8 1 0 2 / 3 / 5 8 1 0 2 / 5 1 / 3 8 1 0 2 / 3 1 / 6 8 1 0 2 / 9 1 / 7 8 1 0 2 / 8 2 / 8 8 1 0 2 / 3 / 0 1 8 1 0 2 / 8 / 1 1 8 1 0 2 / 7 1 / 2 1 USD/GDR lei/USD The General Meeting of Shareholders determines the value of dividends to be distributed to shareholders considering the specific legal provisions. Therefore, Government Ordinance No. 64/200111 approved by Law No. nr.769/2001 as amended, provides at Article 1, par. (1), let. f) that the profit after the deduction of profit tax is distributed in percentage of minimum 50% under the form of dividend. By way of derogation from provisions of Law No. 31/1990 providing that the dividends must be paid no later than six months after the approval of the annual financial statements, the state- owned companies are required, according to the provisions of Government Ordinance nr.64/2001, to pay the due dividends to the shareholders within 60 days from the legal deadline for the submission of the annual financial statements of the competent fiscal authorities. 11 Government Ordinance No. 64/August 30, 2001, on distribution of profit in state-owned companies or companies where the state is sole or majority owner, as well as in autonomous regies Page 50 of 80 2018 Consolidated Board of Directors’ Report According to Government Emergency Ordinance No. 29/201712:  “The amounts distributed in the previous years from other reserves under the provisions of Art. 1 let. (g) of Government Ordinance No.64/2001 [...], existing at the date of entry into force of this Emergency Ordinance, can be redistributed as dividends [...]” - Art.II;  “After the approval of the financial statements of 2016, the entities provided in Art. 1, par. (1) of the Government Ordinance No.64/2001, [...], the retained earnings existing in the balance account on December 31, can be distributed as dividends” - Art.III par. (1). As according to Article 43 of the Government Emergency Ordinance No. 114/2018 “The economic operators, partially or wholly state owned, applying the provisions of the Government Ordinance No. 26/2013, distribute and pay under the law, within 60 days since the approval of the financial statements for 2018, under the form of dividends or payments to the state budget, in case of autonomous regies, 35% of the amounts distributed to other reserves, under the conditions of Article 1, par. (1), let. g) of the Government Ordinance No. 64/2001, found as cash in hand and at bank accounts, as well as the one related to short term investments as of December 31, 2018 and which on the same date are not committed, under procurement contracts, to be used as own financing sources”. The Report on the macroeconomic situation for 2019 and its projection for 2020 – 2022, elaborated by the Ministry of Public Finance, provides that the budgetary planning considered, among others, that:  the impact generated by Article 43 of GEO no. 114/2018;  enforcing in 2019 the measures for allocating minimum of 90% from the net profit as dividends. The table below shows the status of dividends for the years 2015-2018: Description Dividends Gross dividends per share (RON/share) Dividend distribution rate (%) Number of share 2015 1,040,640,480 2016 2,220,033,024 2017 2,640,143,440 Proposal 2018 1,607,211,408 2.70 5.76*) 6.85**) 4.17***) 87.13 216.68 146.38 117.64 385,422,400 385,422,400 385,422,400 385,422,400 *) The gross dividend per share of RON 5.76 is composed of the gross dividend per share for financial year 2016 in amount of RON 2.40/share, and the additional gross dividend of RON 1.42/share resulted from the distribution of retained earnings and the additional gross dividend of RON 1.94/share assigned under the provisions of Article II and III of the Government Emergency Ordinance No.29/2017, distributed from the company’s reserves, representing own financing sources. **) The gross dividend per share of RON 6.85 is composed of the gross dividend per share for financial year 2017 in amount of RON 4.34 per share, and the additional gross dividend of RON 0.65 share resulted from the distribution of retained earnings and the additional gross dividend of RON 1.86 share assigned under the provisions of Article II and III of the Government Emergency Ordinance No. 29/2017, distributed from the company’s reserves representing own financing sources. ***) the proposed gross dividend is 4.17 RON/share consits of: 3.15 RON/share related to the profit of 2018, 0.08 RON/share related to the retained earnings and 0.94 RON/share according to GEO no.114/2018 In 2018, E.G.M.S. Resolution No. 13/December 6, 2018 approved the distribution of additional dividends in total gross amount of RON 716,885,664 (1.86 RON/share). 12 Government Emergency Ordinance No. 29 of March 30, 2017, to amend Art. 1 par. (1) let. g) of the Government Ordinance No. 64/2001 on the distribution of profits in national companies, and trading companies with full or majority state capital, as well as in autonomous regies, and to amend Art. 1 par. (2) and (3) of the Government Emergency Ordinance no.109/2001 on corporate governance of public enterprises. Page 51 of 80 2018 Consolidated Board of Directors’ Report The Government of Romania mandated the state representatives in the General Meeting of Shareholders/the Board of Directors of national companies and majority or entirely state owned companies and of autonomous regies, to take all the necessary measures for the distribution of a minimum share of 90% of net profit achieved in 2017 (as dividends/payments) to the state budget. The Government took this decision through a Memorandum adopted at the meeting of February 8, 2018. The internal regulation “Dividend Policy” was approved by the company’s Board of Directors in March 2017 and is currently published on the company’s webpage www.romgaz.ro, at the section “Investor Relations – Corporate Governance – Reference Documents”. Page 52 of 80 2018 Consolidated Board of Directors’ Report The selection and appointment of the Company’s members in the Board of Directors was accomplished in compliance with the provisions of the GEO No.109/2001 on corporate governance in state-owned enterprises, as amended, approved by Law No.111/2016 and the Methodological Norms of Application (GD No. 722/2016). The members of the Board of Directors on January 1st, 2018 were as follows: Item No. Name Nistoran Dorin Liviu Position in the Board Chairman Ciobanu Romeo Cristian member Cermonea Ioan Daniel member Grigorescu Remus member Baciu Sorana Rodica member Volintiru Adrian Constantin member Status*) Professional Qualification Institution of Employment independent non-executive independent non-executive independent non-executive independent non-executive independent non-executive independent non-executive Engineer Evolio PhD Engineer Engineer PhD in Economics Universitatea Tehnică Iaşi Consiliul Judeţean Sibiu Universitatea “Constantin Brâncoveanu” Economist SC Acgenio SRL Economist SC Exclusiv Clean International SRL During 2018, The Board of Directors underwent the following changes. Thus, on July 6, 2018, by Resolution No.8/2018 of the OGMS, the shareholders elected, by cumulative vote, for a 4 year mandate Mr. Nistoran Dorin Liviu, Mr. Volintiru Adrian Constantin, Ms. Ungur Ramona, Mr. Grigorescu Remus, Mr. Ciobanu Romeo Cristian, Mr. Jude Aristotel Marius and Mr. Jansen Petrus Antonius Maria as members of the Board of Directors. Selection and appointment of Board members was made by complying with the GEO no.109/2011 on corporate governance of public enterprises, as subsequently amended and supplemented, approved by Law no.111/2016 and by the Enforcement Guidelines (GD no.722/2016). The members of the Board of Directors on December 31, 2018, were as follows: Item No. 1 Name Nistoran Dorin Liviu Position in the Board Chairman Volintiru Adrian Constantin member Ungur Ramona Grigorescu Remus member member Status*) independent non-executive executive non- independent independent non-executive independent non-executive Professional Qualification engineer Institution of Employment Evolio economist SNGN Romgaz SA economist - PhD in Economics Universitatea “Constantin Brâncoveanu” Ciobanu Romeo Cristian member independent non-executive PhD engineer Universitatea Tehnică Iaşi Jude Aristotel Marius member Jansen Petrus Antonius Maria member non- independent non-executive independent non-executive MBA legal adviser economist SNGN “Romgaz” SA London School of Business and Finance Page 53 of 80 1 2 3 4 5 6 2 3 4 5 6 7 2018 Consolidated Board of Directors’ Report *) - members of the Board of Directors submitted the independent statements in compliance with the provisions of Romgaz Corporate Governance Code. During 2018 the Board of Directors underwent the following changes:  April 26, 2018: OGMS Resolution No. 6/2018 approves the extension of interim board members mandates by 2 months from the date of their expiration;  July 6, 2018: OGMS Resolution No. 8/2018 the company’s shareholders have elected by cumulative vote, the members of the Board of Directors for a 4 year mandate. The Curricula Vitae of the current Board directors of the company are to be found on the company’s webpage www.romgaz.ro, at “Investor Relations – Corporate Governance – The Board of Directors”. According to the information supplied by each director, there is no agreement, understanding or family relationship between them and another person that contributed to their appointment as directors. As of December 31st, 2018, no member of the Board holds any shares within the company. Cindrea Corin Emil - Director General (CEO) January 1st –June 14, 2018 The Board of Directors appointed Mr. Cindrea Corin Emil by Resolution no. 37 of December 14, 2017 as interim director general for a 4 month period, having the possibility to extend the mandate up to maximum 6 months, according to legal provisions, and delegated internal management powers and representation competences to him. The Board of Directors extended by Resolution no. 19 of April 12, 2018 the Mandate Agreement as Director General by 2 months until June 14, 2018. Volintiru Adrian Constantin - Chief Executive Officer (CEO) as of June 15, 2018 The Board of Directors appointed by Resolution No. 29 of June 14, 2018 Mr. Volintiru Adrian Constantin as Director General for 4 months. The Board of Directors appointed by Resolution No. 45 of October 1st, 2018 Mr. Volintiru Adrian Constantin as Director General of the Company for 4 years. Bobar Andrei – Chief Financial Officer (CFO) The Board of Directors appointed Mr. Bobar Andrei by Resolution no. 30 of November 2, 2017 as chief financial officer. The Board of Directors appointed Mr. Bobar Andrei by Resolution no. 39 of August 28, 2018 as chief financial officer for a limited period, from August 28, 2018 until November 2nd, 2021. Other persons discharging managerial responsibilities: Name ROMGAZ - Headquarters Paraschiv Nelu Cindrea Corin Emil Rotar Dumitru Gheorghe Chertes Viorel Claudiu Pavlovschi Vlad Position Deputy Director General Deputy Director General Deputy Director General Management Support Director Business Development Director Page 54 of 80 2018 Consolidated Board of Directors’ Report Ştefănescu Dan Paul Bîrsan Mircea Lucian Stancu Lucian Adrian Bodogae Horea Sorin Ciolpan Vasile Morariu Dan Nicolae Stan Ioan Balasz Bela Atila Sânpetrean Anca Mariana Sorescu Eugen Pleşa Vasile Gabriel Mediaş Branch Man Ioan Mihai Achimeţ Teodora Magdalena Şutoiu Florinel Seician Daniel Târgu Mureş Branch Roiban Claudiu Papoi Ilona Rusu Graţian Baciu Marius Tiberiu Iernut Branch Călian Dorel Oros Cristina Monica Oprea Maria Aurica Bircea Angela SIRCOSS Dobrescu Dumitru Bordeu Viorica Gheorghiu Sorin STTM Pop Traian Ilinca Cristian Alexandru Cioban Cristian Augustin Exploration –Production Director Technical Director Corporate Management Director Procurement Director Energy Trade Director Information Technology and Telecommunication Director Human Resources Director Energy Management Director Financial Director Exploration Director HQSE Director Director Economic Director Production Director Technical Director Director Economic Director Production Director Technical Director Director Economic Director Commercial Director Technical Director Director Economic Director Technical Director Director Economic Director Operation –Development Director The members of the upper management, except the director general and the chief financial officer are employees of the company, having an individual labour contract for an indefinite period. The management and operating personnel are employed, promoted and dismissed by the director general based on the competences delegated to him by the Board of Directors. The Board of Directors and the upper management of Depogaz Subsidiary is provided on its website, namely: https://www.depogazploiesti.ro/ro/despre-noi/conducere According to our information, there is no agreement, understanding or family relationship between the members of the above mentioned upper management and another person that contributed to their appointment as members of the upper management. The table below shows the number of shares held by the members of the upper management as of December 31, 2018: Page 55 of 80 Name and Surname Number of shares held Weight in the capital share (%) 2018 Consolidated Board of Directors’ Report Item no. 0 1 3 4 6 7 1 Rotar Dumitru Gheorghe 20,611 2 Ştefănescu Dan-Paul Cârstea Vasile Ilinca Cristian Alexandru Morariu Dan Nicolae 601 412 74 52 38 10 Balasz Bela Atila 3 0.00534764 0.00015593 0.00010690 0.00001920 0.00001349 0.00000986 To the best of our knowledge, the persons mentioned at 6.1 and 6.2 above, have not been involved in litigations or administrative proceedings related to their activity in Romgaz in the last 5 years, nor in proceedings related to their capacity of fulfilling the duties, except for the litigations arising out of the application of Decision No.26/2016 of the Court of Accounts – Sibiu Chamber of Accounts, having as scope the recovery of the amounts paid as regular overtime pay to the managing personnel (see item 169, 172, 175-179, 181, 183, 184, 212, 296, 304, 374 of Annex no. 2 Litigations). Page 56 of 80 2018 Consolidated Board of Directors’ Report The consolidated financial statements of the Group have been prepared in accordance with the provisions of the International Financial Reporting Standards (IFRS) as adopted by the European Union and provisions of PFM Order no. 2844/2016. For the purposes of the preparation of these individual financial statements, the functional currency of the Company is deemed to be the Romanian Leu (RON). IFRS, as adopted by the EU, differs in certain respects from IFRS as issued by the IASB. However, the differences have no impact on the Company’s individual financial statements for the years presented. The individual financial statements have been prepared on a going concern basis in accordance with the historical cost convention. The table below presents a summary of the statement of individual financial position as of December 31, 2018: Indicator 0 ASSETS Non-current assets 31.12.2016 restated*) (thousand RON) 1 31.12.2017 restated*) (thousand RON) 2 31.12.2018 (thousand RON) Variance (2018/2017) 3 4=(3-2)/2*100 Property, plant and equipment 6,139,435 6,221,699 6,279,748 Other intangible assets Associates Deferred tax asset Other Financial Investments Total non-current assets Current Assets Inventories Trade and other receivables Contract costs Other financial assets Other Assets Cash and cash equivalents Total current assets TOTAL ASSETS EQUITY AND LIABILITIES Capital and reserves Share capital Reserves Retained earnings Total capital and reserves Non current liabilities Retirement benefit obligation Provisions Deferred revenue Total non current liabilities Current liabilities 14,591 21,301 18,053 69,657 8,629 22,676 69,965 69,678 4,970 23,298 127,491 9,812 6,263,037 6,392,647 6,445,319 575,983 828,609 - 2,893,852 141,529 280,547 4,720,520 10,983,557 389,515 816,086 245,992 826,046 - 2,787,261 305,913 227,167 4,525,942 10,918,589 583 881,245 168,878 566,836 2,689,580 9,134,899 385,422 3,020,152 5,986,265 9,391,839 119,986 524,239 - 644,225 385,422 2,312,532 6,277,486 8,975,440 119,482 682,041 - 801,523 385,422 1,824,999 5,458,196 7,668,617 139,254 510,114 21,128 670,496 0.93% -42.40% 2.74% 82.22% -85.92% 0.83% -36.85% 1.22% n/a -68.38% -44.80% 149.52% -40.57% -16.34% 0.00% -21.08% -13.05% -14.56% 16.55% -25.21% n/a -16.35% Page 57 of 80 2018 Consolidated Board of Directors’ Report Trade and other payables Contract liabilities Current tax liabilities Deferred revenue Provisions Other liabilities Total current liabilities TOTAL LIABILITIES 569,945 - 60,295 4,924 50,742 261,587 947,493 1,591,718 606,109 - 128,520 970 76,923 329,104 186,702 46,381 68,001 8,442 93,645 392,615 1,141,626 1,943,149 795,786 1,466,282 TOTAL EQUITY AND LIABILITIES 10,983,557 10,918,589 9,134,899 -69.20% n/a -47.09% 770.31% 21.74% 19.30% -30.29% -24.54% -16.34% *) In 2018 the Group voluntarily modified the accounting policy regarding recognition of costs with seismic, geological, geophysical works and other similar operations. According to the new policy such costs are recognised as expense when they are incurred. Previously, such costs were recognised as exploration intangible assets. At the same time the Group modified in 2018 the method for calculating the well decommissioning provision, replacing average cost of equity with the related interest rate of the 10 year liability government bonds as liability discount rate, in compliance with industry practices. Moreover, in 2018 the Group reanalysed the depreciation of the gas cushion recorded as non-current asset and concluded that it should not have been depreciated; the correction affected the previous periods, therefore they have been restated in order to make them comparable to the current period. More information on these restatements are shown in the consolidated and individual financial statements annexed to this report. NON-CURRENT ASSETS Total non-current assets increased by 0.93%, representing RON 58 million, from RON 6.22 billion on December 31, 2017 to RON 6.28 billion on December 31, 2018. Although in 2018 the Group invested RON 1.15 billion in assets, this increase was partially cancelled by the depreciation expense (RON 591.3 million in 2018, as compared to RON 573 million in 2017) and by impairment (the net expense with the impairment was RON 116.9 million in 2018 as compared to the net income of RON 21 million in 2017). Out of the RON 1.15 billion representing the investments made in 2018, RON 569 million represent the investment made in the new power plant in Iernut. At the end of 2018 the Group recorded an impairment loss of RON 141.9 million on the basis of an impairment test of the assets employed in the gas production and an impairment loss of RON 54 million on the existing power plant of Iernut. As related to the financial investments, in 2018 the Group recorded a decrease of the fair value of Electrocentrale București by RON 59.9 million. Out of this amount RON 40.7 million affected the year end result, and the difference was recorded as retained earnings, following the transition to IFRS 9. The Associates have been accounted in the consolidated financial statements by equity method providing that initial investment is recognized as cost and it is later on adjusted depending on the post-acquisition modification of the Group share in the net assets of the associate in which the Group has invested. The Group profit or loss includes its share of the associate’s profit or loss. Deferred income tax Deferred income tax is based on the temporary differences between the accounting value and the fiscal value of balance sheet items. These temporary differences may be taxable, meaning they will result in taxable values when determining the taxable result of future periods, or deductible, meaning they will result in values that are deductible when determining the taxable result of future periods. Page 58 of 80 2018 Consolidated Board of Directors’ Report Considering the impairment adjustments recorded for the fields exploited by the Group and for the existing Iernut power plant, the temporary differences between the accounting value and the fiscal value of assets increased, generating the increase of deferred tax asset on December 31 2018 as compared to December 31, 2017. CURRENT ASSETS Inventories As compared to 2017 inventories decreased at the end of 2018 by 36.85% because of a 49% gas stock decrease in the underground gas storages as compared to the previous year. Cash and cash equivalent. Other financial assets On December 31, 2018, cash and cash equivalent and other financial assets (bank deposits and purchased state bonds) were of RON 1,448.08 million, as compared to RON 3,014.43 million at the end of 2017, the decrease being generated by distributing additional dividends in 2018, besides the dividends for 2017. Thus total dividends distributed to shareholders in 2018 were in amount of RON 2.6 billion. Other assets Other assets decreased due to recovery in 2018 of RON 113 million out of the total receivable of RON 244 million recorded on December 31, 2017, representing excise duty related to technological consumption for the period 2010-2016. CAPITAL AND RESERVES Group’s equity decreased by 14.56% (RON 1,306.8 million) as compared to the end of 2017, due to distributing to shareholders as dividends the result of 2017 and part of the result of the previous years, in compliance with the resolution of the Group’s general meeting of shareholders. Additional dividends were distributed from Parent Company reserves in 2018. NON-CURRENT LIABILITIES Long-term provisions decreased by 19.0% in 2018 as compared to 2017, mainly as a result of decreasing the provision for decommissioning wells that are going to be written off in the future. CURRENT LIABILITIES Total current liabilities decreased on December 31, 2018 as compared to the end of previous year by RON 345.8 million, mainly due to application of IFRS 15. Advance payments cashed from clients at the end of the period were presented in 2017 as trade payables, including the amounts related to the deliveries of December 2017 not invoiced by the end of 2017. In 2018 such amounts are presented as net deliveries of December 2018 for which advance payments have been cashed from the clients. Deferred income increased on December 31, 2018 as compared to 2017 following the receipt of RON 20.99 million from the National Investment Plan for Iernut power plant. The subsidy will be recognised as income, as and when the power plant financed from this fund is depreciated. Bearing in mind that the new investment will be commissioned in 2020, the full amount was recognised in the category of Non-current liabilities. The Group did not issue bonds or other debt instruments in financial year 2018. Page 59 of 80 2018 Consolidated Board of Directors’ Report The Group profit and loss account summary for the period January 1 – December 31, 2018, as compared to the similar period of the years 2017 and 2016, is shown below: Indicator 0 Revenue Cost of commodities sold Investment income Other gains and losses Net losses from impairment of trade receivables Changes in inventory Raw materials and consumables used Net depreciation and amortization Employee benefit expense Finance cost Exploration expense Share of associates’result Other expenses Other income Profit before tax Income tax expense Year 2016 restated**) (RON thousand) 1 Year 2017 restated*) (RON thousand) 2 3,411,868 4,585,186 Year 2018 (RON thousand) 3 5,004,197 (49,878) 22,117 (61,095) (245,020) 22,350 53,279 (468,218) (122,068) (102,989) Variance (2018/2017) 4=(3-2)/2*100 9.14% 301.05% 138.38% -15.63% - - (19,941) n/a 20,963 (186,651) (54,632) (64,329) (32,180) (75,460) (311,012) (498,114) (18,275) (253,348) - (552,446) (708,142) (562,894) (621,330) (18,791) (183,121) 1,375 (29,724) (247,123) 622 (881,923) (1,101,933) (1,409,447) 361,147 1,280,695 (256,116) 364,169 2,119,752 (316,118) 18,442 1,585,184 (219,016) -82.76% 17.30% 28.18% 10.38% 58.18% 34.95% -54.76% 27.91% -94.94% -25.22% -30.72% 1,024,579 1,803,634 1,366,168 Profit for the year -24.25% *) In 2018 the Group voluntarily modified the accounting policy regarding recognition of costs with seismic, geological, geophysical works and other similar operations. According to the new policy such costs are recognised as expense when they are incurred. Previously, such costs were recognised as exploration intangible assets. At the same time the Group modified in 2018 the method for calculating the well decommissioning provision, replacing average cost of equity with the related interest rate of the 10 year liability government bonds as liability discount rate, in compliance with industry practices. Moreover, in 2018 the Group reanalysed the depreciation of the gas cushion recorded as non-current asset and concluded that it should not have been depreciated; the correction affected the previous periods, therefore they have been restated in order to make them comparable to the current period. More information on these restatements are shown in the consolidated and individual financial statements annexed to this report. **)Year 2016 does not reflect the effects of above mentioned accounting policy modification and accounting errors corrections. Revenue In 2018, Romgaz recorded a consolidated revenue of RON 5.00 billion compared to RON 4.59 billion achieved in 2017. The increase resides from a 17.7% rise of income from gas sales both from Romgaz production and gas purchased to be resold and from partnerships, despite the decrease of income from electricity sales (36%) and decrease of income from underground storage services (41.08%) which is due to the decrease by 26% of the gas storage tariff approved by ANRE as of April 1st, 2018. Cost of Commodities Sold Page 60 of 80 2018 Consolidated Board of Directors’ Report In 2018, cost of commodities sold increased by 301.05%, due to an increase by 630.61% of the cost of commodity gas sold, due to a 549.7% increase in the quantity of imported commodity gas sold. Nevertheless, the Group has not been significantly influenced by the sale of such gas. Investment income Investment income represent income from liquid assets deposited by the Group in banks and in government bonds. The increase by 138.38% as compared to 2017 is generated by the increase of the interest rates. Other Gains and Losses Other gains and losses should be analysed together with Net loss from impairment of trade receivables. Following the adoption of IFRS 15, such losses are presented separately in the preliminary result of the consolidated comprehensive income. The Group chose to apply IFRS 15 without restating the previous periods. As compared to 2017 net losses decreased by 0.7%. Changes in Inventory Reduction of negative effect of changes in inventory in 2018 as compared to 2017 is due to the increase by 38% of the gas volume withdrawn from storages as compared to injected gas volumes, as compared to 2017 when the gas volumes withdrawn from storages was higher by 185% than the injected volumes. Net Depreciation and Amortization Net Depreciation and Amortization of non-current assets, tangible and intangible, increased in 2018 by 28.18% compared to 2017 mainly due to impairment of RON 141.9 million for the gas fields exploited by Romgaz, following the impairment test performed in December 2018. The Group has also recorded an impairment of RON 54 million of the assets representing the existing Iernut power plant, because of forecasting termination of its activity in 2020, the year of commissioning the new powerplant, which is currently under construction. Employee benefit expense The increase of employee benefit expenses by 10.38% compared to 2017 is due both to the indexation of salaries to cover the inflation and granting incentive bonuses for remarkable results, according to the human resource policy. Exploration expense Out of the exploration expenses of RON 247.1 million incurred in 2018, the 3D seismic activity in amount of RON 97 million increased by 104% compared to previous year. It proves the Group commitment to discovery of new reserves. The exploration projects abandoning costs are higher by 11% compared to previous year, but their effect is cancelled by inherent releases of related impairments. Other expenses In 2018, other expenses recorded an increase by 27.91% as compared to 2017. The increase of RON 307.5 million is mainly due to the increase of tax expenditures (royalty and windfall tax, as mentioned din the preamble). Other income The decrease of other income is mainly due to the income of RON 244 million in 2017 from excises related to technological consumption of the period 2010-2016. Upon the date of this report the Group has recovered the full amount. Page 61 of 80 2018 Consolidated Board of Directors’ Report Statements of cash flows recorded in the period 2016 – 2018 are shown in the table below: INDICATOR 2016**) 2017 restated) *thousand RON* 2018 Cash flow from operating activities Net Profit for the year Adjustments for: Income tax expense Share from associates’ result Interest expense Unwinding of decommissioning provision Interest revenue Loss on disposal of non-current assets Change in decommissioning provision recognized in profit or loss, other than unwinding Change in other provisions Impairment of exploration assets Exploration projects written-off Impairment of property, plant and equipment Depreciation costs Depreciation of contract costs Impairment of investments in associates Impairment of other financial assets (Earning)/loss on financial investments at their fair value through profit or loss Losses from disposal of other financial investments Losses from trade receivables and other assets Net impairment of inventories Income from prescribed debts Income from subsidies Cash generated from operations before movement in working capital Movement of working capital (Increase)/Decrease in inventory (Increase)/Decrease in trade and other receivables (Increase)/Decrease in trade and other liabilities Cash generated from operations Interest paid Income tax paid Net cash generated by operating activities Cash flows from investing activities Payments for investment increase in associates Net collections/(payments) related to financial assets Interest received Proceeds from sale of non-current assets Acquisition of non-current assets Acquisition of exploration assets Proceeds from disposal of associates Net cash used in investing activities Cash flows from financing activities Dividends paid Subsidies received Net cash used in financing activities Net Increase/(Decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 1,024,579 1,803,634 1,366,168 256,116 - 15 18,260 (22,117) 108,057 (5,941) 18,919 (173,701) 253,348 (43,228) 527,941 - 43 (1,554) - 1,577 354,321 5,714 - - 316,118 (1,375) 3 18,788 (22,350) 74,401 22,978 11,389 (45,100) 135,350 24,489 573,057 - (12,462) (21) - 12,308 38,575 8,147 (610) (150) 219,016 (622) - 29,724 (53,279) 62,961 (34,390) 30,152 (118,809) 149,620 235,661 591,290 1,291 - - 40,782 - 20,048 (2,052) (58) (269) 2,321,062 2,957,169 2,537,234 (21,646) (583,600) 337,707 2,053,523 (15) (309,125) 1,744,383 - (720,480) 25,178 144 (296,511) (172,178) - (1,163,447) 178,363 (180,285) 105,975 3,061,222 (3) (309,956) 2,751,263 (144) 104,970 20,909 207 (479,797) (231,496) 298 (585,053) 143,115 (8,156) (194,681) 2,477,511 - (334,324) 2,143,187 - 1,917,569 49,338 961 (948,588) (205,371) - 813,909 (1,040,762) - (1,040,762) (459,826) (2,220,003) 413 (2,219,590) (53,380) (2,638,535) 21,108 (2,617,427) 339,669 740,352 280,547 227,167 280,526 227,167 566,836 *) In 2018 the Group voluntarily modified the accounting policy regarding recognition of costs with seismic, geological, geophysical works and other similar operations. According to the new policy such costs are recognised Page 62 of 80 2018 Consolidated Board of Directors’ Report as expense when they are incurred. Previously, such costs were recognised as exploration intangible assets. At the same time the Group modified in 2018 the method for calculating the well decommissioning provision, replacing average cost of equity with the related interest rate of the 10 year liability government bonds as liability discount rate, in compliance with industry practices. Moreover, in 2018 the Group reanalysed the depreciation of the gas cushion recorded as non-current asset and concluded that it should not have been depreciated; the correction affected the previous periods, therefore they have been restated in order to make them comparable to the current period. More information on these restatements are shown in the consolidated and individual financial statements annexed to this report. **)Year 2016 does not reflect the effects of above mentioned accounting policy modification and accounting errors corrections. Page 63 of 80 2018 Consolidated Board of Directors’ Report Corporate governance accommodates continuously to the requirements of a modern economy, to increasing globalization of social life and to investors and interested parties need for information on companies business. As a national company Romgaz has to comply with GEO No. 109 of November 30, 2011 on public companies corporate governance, as amended and supplemented (the “Ordinance”), approved by Law 111/2016 and Government Decision no. 722 of September 28, 2016 on Methodological Norms for establishing the financial and nonfinancial performance criteria and variable component of remuneration of Board members, or if applicable, of the supervisory board members, and of managers and members of the directorate. The Ordinance sets up a number of principles and provisions to ensure their application. Ordinance provisions are observed by the company, and are included in the Company’s Articles of Incorporation, as amended and approved by the company’s shareholders in the following resolutions no. 19 of October 18, 2013; no. 5 of July 30, 2014, no. 8 of October 29, 2015, no.9 of October 28, 2016 and no.4 of August 9, 2017 (latest update of the Articles of Incorporation). The updated Company’s Articles of Incorporation is posted on the webpage www.romgaz.ro, at “Investor Relations – Corporate Governance - Reference Documents”. Since November 12, 2013, Romgaz shares have been traded on the regulated market governed by BVB, at category I, under the symbol “SNG”, as well as on the London Stock Exchange (where GDRs are traded) under the symbol “SNGR”. On January 5, 2015, after the Financial Supervisory Authority approved the proposals to amend BVB’s regulations, Romgaz was admitted into the PREMIUM category of BVB regulated market. As issuer of securities traded on the regulated market, Romgaz has to fully comply with the corporate governance standards provided by applicable national regulations, namely the Corporate Governance Code of BVB, posted on the internet webpage www.bvb.ro, at “Investor Relations – Regulations - BVB Regulation”. The corporate Governance System was and will be continuously improved according to rules and recommendations applicable to Companies listed on Bucharest Stock Exchange and on London Stock Exchange. Some of the already implemented measures include:  Elaboration of a new Corporate Governance Code, in accordance with the new Corporate Governance Code of BVB applicable since January 4, 2016 – the document was approved by Romgaz Board of Directors by Resolution no.2/ January 28, 2016. The Corporate Governance Code was updated and shall be submitted for approval of the Board of Directors. The Company’s Articles of Incorporation is posted on the webpage www.romgaz.ro, at “Investor Relations – Corporate Governance – Reference Documents”.  Board of Directors approval and update of the Internal Rules for the advisory committees during the meetings held on March 24, 2016 (for all committees) and March 23, 2017 (update of the Internal Rules of the Strategy Committee). All other Internal Rules of the advisory committees were amended in 2017 to include the latest legal changes on corporate governance (Law No. 111/2016 and GD No. 722/2016). The rules were updated and are going to be submitted for approval of the Board of Directors. Page 64 of 80 2018 Consolidated Board of Directors’ Report  Update of the Terms of Reference of the Board of Directors to include the latest legal changes on corporate governance. The Terms of Reference were approved by the Board of Directors on March 23, 2017 and update subsequently in January 2018;  Elaboration of internal regulation in compliance with the new Corporate Governance Code of BVB. The members of advisory committees elaborated the Remuneration Policy, the Board Members Evaluation Policy, the Policy on Related Party Transaction, regulations approved in the Board meeting of March 12, 2019 and March 20, 2019;  Include in the Board of Directors’ Report a chapter dedicated to corporate governance referring, among others, to : the applicable Corporate Governance Code, the duties of the executive management and of the three advisory committees of the Board of Directors (Nomination and Remuneration Committee and Audit Committee and the Strategy Committee), aspects related to remuneration of members of the Board and of managers, measures to improve the corporate governance, aspects related to internal control and risk management system and aspects related to social responsibility;  Include in the Board of Directors’ Report a section referring to compliance with the provisions of BVB Corporate Governance Code (Annex 1);  Diversify communication ways with shareholders and investors by posting on the website announcements addressed to market players, half year and quarterly financial statements, annual reports, procedures to follow for access and participation to GMS, and by setting up of an “Infoline” for shareholders/investors to respond to their requirements and/or questions;  Establish a specialized department dedicated to investor and shareholder relations;  Conclusion of professional liability insurance for directors and managers and appointment of a person to monitor such contracts;  Starting the procedures necessary for the adopting and implementing the National Anticorruption Strategy. Therefore, a Commission has been established, responsible with the implementation of the strategy provisions; the Director General has adopted the Statement of Adherence to the National Anticorruption Strategy and Integrity Plan for 2017, 2018 and 2019, documents published on the internet website at “Investor Relations – Corporate Governance – Transparency”. Among the measures to be implemented we mention the remuneration policy for the executive management, with a fixed and variable component that depends on the results of their evaluation. According to the Corporate Governance Code of London Stock Exchange, long-term bonus schemes should be submitted for approval of the shareholders (GMS). The shareholders structure is presented within Chapter II “Company Presentation” Romgaz respects and protects the rights and legitimate interests of the shareholders. The company undertakes all necessary efforts to facilitate the exercitation of shareholders’ rights in relation with the company under the law and in compliance with the Articles of Incorporation. A separate document on the rules and procedures of the GMS setting the framework for the way GMS is organized and carried out was drafted and is about to be submitted for the approval of the Board of Directors in the following period of time. Page 65 of 80 2018 Consolidated Board of Directors’ Report The General Meeting of Shareholders is summoned by the Board of Directors, whenever necessary, in accordance with the legal provisions. The convening notices and afterwards, the GMS resolutions, are sent to Bucharest Stock Exchange, London Stock Exchange and to the Financial Supervisory Authority in compliance with the regulations of the capital market and will be published on the company’s website at “Investor Relations – General Meeting of Shareholders”. The Ordinary General Meeting of Shareholders has the following main competencies: a) to approve the company’s strategic objectives; b) to discuss, approve or amend, as the case may be, the annual financial statements of the company based on the reports submitted by the Board of Directors and the financial auditor, and to set the dividend; c) to discuss, approve or request, as the case may be, the addition or review of the company’s management plan, under legal provisions. d) to set the income and expenditure budget for the following financial year; e) to appoint and to dismiss the Board members and to set their remuneration; to make an opinion on the governance of the Board of Directors; f) g) to appoint and to dismiss the financial auditor and to set the minimum term of the financial audit contract; i) h) to approve contracting bank loans, whose value exceeds, individually or cumulated with other bank loans in progress over a financial year, EUR 100 million, equivalent in RON; to approve the documents for establishing guarantees, other than guarantees for the company’s non-current assets, with individual or cumulated value with other established guarantees other than guarantees in progress for the company’s non-current assets over a financial year of EUR 50 million, equivalent in RON. The Extraordinary General Meeting of Shareholders has the following main competencies: a) to change company’s legal form; b) to move the headquarters; c) to change the Company’s scope of activity; d) to establish companies, as well as conclude or amend incorporation documents of the companies where Romgaz is managing partner; to increase the share capital; the anticipated winding up of the company; to convert shares from a category into the other; e) to conclude or amend joint venture contracts where the company is contracting party; f) g) to reduce the share capital or to restore it by issuing new shares; h) to merge with other companies or to spin-off the company; i) j) k) to convert one category of bonds into another one or in shares; l) m) to conclude the documents related to the acquisition of non-current assets whose value exceeds, separately or cumulatively, during a financial year, 20% of the total non- current assets of the company, except for receivables; to issue bonds; n) to conclude the documents related to disposal, exchange and set up of guaranties referring to non-current assets whose value exceeds, separately or cumulatively, during a financial year, 20% of the total non-current assets, except for receivables; o) to conclude the documents related to rental for a period longer than 1 (one) year of tangible assets to the same contractors or to persons involved or acting together, whose Page 66 of 80 2018 Consolidated Board of Directors’ Report value exceeds, separately or cumulatively, 20% of the total non - current assets, except for receivables at the document conclusion date; p) any other change in the articles of incorporation or any other resolution that requires the approval of the extraordinary general meeting of shareholders. Romgaz is a joint-stock company governed under an one-tier system. The Board of Directors consists of 7 (seven) directors elected by the general meeting of shareholders, in compliance with legal applicable provisions and the provisions of the Articles of Incorporation, one of its members is appointed Chairman of the Board. Board of Directors composition complies with the legal criteria/conditions on the share of non- executive and independent directors, the studies and competencies, experience and gender diversity (criteria detailed in the Board of Directors Terms of Reference). Board of Directors composition on December 31, 2018 is presented in Chapter VI “Company management”. According to the independency declarations sent to the company, two directors have declared to be independent and one as non-independent. The independence of Board members is determined based on the criteria detailed in Romgaz Corporate Governance Code (art.6). Aspects on directors’ rights, obligations and competencies, as well as aspects related to Board Meetings are detailed in the Articles of Incorporation and in the Board of Directors Terms of Reference. Until December 31, 2018, the Board of Directors did not make a self- assessment for 2018. In its activity, the Board of Directors is supported by three advisory committees, namely: the nomination and remuneration committee, the audit committee and the strategy committee. The Audit Committee has legal competencies provided in Article 65 of Law No. 162/210713 consisting mainly in monitoring the financial reporting process, the internal control systems, the internal audit and risk management systems within the company, as well as in controlling the statutory audit activity related to annual financial statements and managing the relationship with the external auditor. The Nomination and Remuneration committee has, basically, the competence to set the procedures for selecting the candidates for the director and manager positions, and to make proposals for the director’s position and to get involved in the selection and recruitment procedure or managers, and to make proposals on their remunerations. The committee has also the obligation to elaborate during the financial year an annual report on the remuneration and other benefits awarded to directors and managers. The main scope of the strategy committee is to coordinate drafting/update and monitoring of the company’s development strategies, correlated with the national and European energy strategy, to analyse the implementation of such strategies and the measures needed to reach the objectives set, and to monitor the business diversification projects by carrying out some investment objectives. 13 Law No. 162 of July 15, 2017 on the statutory audit of annual financial statements and of annual consolidated financial statements and of amending pieces of legislation Page 67 of 80 2018 Consolidated Board of Directors’ Report The detailed presentation of attributions and responsibilities of each advisory committee can be found in their respective Internal Rules published on the company’s webpage www.romgaz.ro at “Investor Relations – Corporate Governance – Reference Documents”. On December 31, 2018, the advisory committees’ structure was the following: I) Nomination and Remuneration Committee:  Grigorescu Remus (chairman)  Nistoran Dorin Liviu  Ungur Ramona  Ciobanu Romeo Cristian II) Audit Committee  Jansen Petrus Antonius Maria (chairman)  Grigorescu Remus Nistoran Dorin Liviu  Ungur Ramona  Ciobanu Romeo Cristian  Jude Aristotel Marius III) Strategy Committee  Ciobanu Romeo Cristian (chairman)  Nistoran Dorin Liviu  Jude Aristotel Marius  Jansen Petrus Antonius Maria. Information regarding the Board of Directors’ meetings and the Advisory Committees during 2018 During 2018, the Board of Directors held a number of 24 meetings, in compliance with the legal and statutory provisions, out of which:  19 effective meetings of the directors;  5 conference-call meetings; and  17 electronic vote meetings. The attendance at the Board of Directors’ meetings: First name and last name Number of meetings during the mandate P A NP No. % No. % No. % Nistoran Dorin Liviu Ciobanu Romeo Cristian Grigorescu Remus Volintiru Adrian Constantin Ungur Ramona Jude Aristotel Marius Jansen Petrus Antonius Maria Baciu Sorana Rodica Cermonea Daniel Ioan Anghel Daniel Florin where: P = participate A = power of attorney NP = did not participate 41 41 41 41 18 18 18 23 23 23 41 33 40 41 18 18 13 21 21 18 100.0 80.5 97.6 100.0 100.0 100.0 72.2 91.3 91.3 78.3 1 1 2.4 2.4 7 17.1 5 2 2 5 27.8 8.7 8.7 21.7 Page 68 of 80 2018 Consolidated Board of Directors’ Report Directors’ attendance at Advisory Committees’ meetings: Nomination and Remuneration Committee: 15 meetings First name and last name Grigorescu Remus Baciu Sorana Rodica Cermonea Daniel Ioan Nistoran Dorin Liviu Volintiru Adrian Constantin Ungur Ramona Ciobanu Romeo Cristian Audit committee: 8 meetings First name and last name Baciu Sorana Rodica Grigorescu Remus Cermonea Daniel Ioan Ciobanu Romeo Cristian Volintiru Adrian Constantin Petrus Jansen Antonius Maria Ungur Ramona Jude Aristotel Nistoran Dorin Liviu Strategy Committee: 3 meetings First name and last name Ciobanu Romeo Cristian Baciu Sorana Rodica Nistoran Dorin Liviu Grigorescu Remus Volintiru Adrian Constantin Jude Aristotel Marius physical attendance 15 10 13 15 10 4 3 physical attendance 5 5 5 3 4 2 2 2 1 physical attendance 3 2 2 3 1 1 In compliance with the company’s Articles of Incorporation “the Board of Directors shall assign, totally or part of, the management competences of the Company to one or more managers, appointing one of them as Director General” Article 24, paragraph (1), “manager” meaning “the person to whom the Board of Directors delegated authority to manage the company” Article 24, paragraph (12). During January 1 – June 14, 2018 Mr. Cindrea Corin Emil acted as Director General having some company management attributions and competencies delegated by the Board of Directors. During June 15, 2018 – October 1, 2018 Mr. Volintiru Adrian Constantin acted as Romgaz interim CEO. On October 2, 2018 Mr. Volintiru Adrian Constantin was appointed as CEO of the company for a 4 years mandate. By Resolution no. 49 from October 9, 2018, the Board of Directors established the duties delegated to the Director General by the Board of Directors as follows: Page 69 of 80 2018 Consolidated Board of Directors’ Report A. Duties related to internal management: a) Carries out the Company’s main activity and development directions established by the Board of Directors; b) Carries out the Company’s’ development strategies and/or policies approved by the Board of Directors; c) Follows the way the accounting and financial control policies are carried out and approves the financial and financial planning reports; d) Concludes legal acts on behalf, in the interest and on the account of the Company, according to Law No. 31/1990. For contracts with an equivalent value between 1,000,000 and 10,000,000 Euros it is necessary to inform the Board of Directors within a 30 days period of time. Contracts with a value higher or equal with the equivalent of 10,000,000 are approved by the Board of Directors; e) Organizes the Company’s’ personnel selection, hires, awards, sanctions and fires, as the case may be, the Company’s’ personnel in compliance with the provisions of labour legislation and the provisions of the labour contract; f) Names, suspends and/or revokes the functional units’ managers and executive directors, and negotiates their basic salaries. g) Proposes for the Board of Directors approval the Organizing and Company’s’ Functioning Regulations and organizational chart; h) Approves the Company’s’ organizational and functional chart as well as the other internal documents which regulate the Company’s’ activity at employees level; i) Negotiates the Collective Labour Contract (CLC) and the individual labour contracts in compliance with the provisions from the CLC – salary and social expenses and fund limits provided in the incomes and expenses budget approved by the Company’s’ General Shareholders Assembly j) Establishes the personnel’s competencies, attributions, duties and responsibilities on departments, except the departments related to executive directors and managers on mandate; k) Analyses the business opportunities in the Company’s interest with internal and external partners; l) Ensures the efficiency of the internal control system and the management system in compliance with the legislation in force; m) Organizes and manages the Company’s activities, coordinates and controls them in order to ensure the lawful usage of financial, material and human resources, in accordance with the accounting system approved by the Company’s Board of Directors and the applicable legal provisions and the provisions of the present Contract of Mandate; n) Represents the Company with full and discretionary rights in general meetings and boards of directors of third companies where the Company is partner/shareholder, excepting naming and revoking the members of their boards of directors which is possible through special mandate from the Board of Directors. o) May delegate the power to represent the company for specific documents by its decisions with the prior approval of the Board of Directors; p) Ensures and promotes the Company’s image; q) Fulfils any other duties provided in the Applicable Legal Frame in compliance with the law. B. Responsibilities and duties related to the representation of the company:  represents the company when concluding/issuing legal documents;  represents the company in pre-contractual, administrative and/legal procedures; Page 70 of 80 2018 Consolidated Board of Directors’ Report  fulfils any accessory duties, namely any acts and special operations necessary and useful for achieving the above mentioned duties. The Director General has to inform periodically the Board of Directors on the manner of achieving the assigned duties, as well as the right to request and to obtain instructions on the manner of exercising the assigned duties. Internal audit activity is organised and conducted in compliance with: Law 672/2002 on the internal public audit; Own methodological norms, issued under GD No. 1086/2013 on approving the General Norms on exercising the internal public audit; Order of the Ministry of Public Finances No. 252/2004, Code of ethics of the internal auditor, as subsequently amended and supplemented; SNGN Romgaz SA Internal Audit Charter. Romgaz sets and keeps the internal audit activity operational, being performed independently from other functions and activities. According to the applicable law, the Internal Audit Department is directly subordinated to the Director General, but reports to the Board of Directors through the Audit Committee. Internal auditing mission, attributions and responsibilities are defined in the Internal Audit Charter approved by the Director General. The charter sets the position of the internal audit within the company, sets the manner for accessing company’s documents in order to duly fulfill audit missions and defines their scope of activity. Internal auditing is conducted permanently in order to provide an independent evaluation of operations, control and its management processes, evaluates the potential risk exposure of various business segments (asset security, compliance with laws and contracts, integrity of operational and financial information etc.) makes recommendation for improving the systems, controls and procedures to ensure efficiency of operations and observes the proposed corrective actions and the results. Internal auditing is conducted as follows:  Evaluate the management and internal control systems – system audit;  Evaluate results of the monitored objectives and examine the actual impact – performance audit;  Ensure conformity of procedures and operations with legal requirements – regularity audit. The internal audit activity is an independent and objective activity, which gives the company an insurance regarding the control level on operations, and it is carried out in compliance with the prepared and approved procedures. The internal audit activity was performed in 2018 according to the audit plan prepared based on the risk analysis related to auditable activities of the company within their scope of activity. In this context, the Internal Public Audit Service carried out a planned insurance mission, a planned informal counselling mission and 4 ad-hoc insuring missions. The following areas were included in these missions:  budget;  public acquisitions;  company’s specific functions;  financial - accounting; Page 71 of 80 2018 Consolidated Board of Directors’ Report  information technology. The objectives of the internal audit are to support the company in identifying and evaluating significant risks in order to provide an independent evaluation on risk management, on the control and management processes and to support the company in maintaining an efficient and effective control system. Optimizing the company’s internal audit organizational chart structure was analysed in 2018 in order to improve the organization and to represent a useful instrument in company management. In this respect, the audit structure was supplemented with 3 new job positions. The National Anti-Corruption Strategy 2016 – 2018 defines the necessity to perform an internal audit once in 2 years of the corruption prevention system at all public authorities level, starting with 2018. Starting with April 1, 2018 Filiala de Înmagazinare Gaze Naturale DEPOGAZ Ploieşti SRL operates under the authority of SNGN ROMGAZ SA having an internal audit office. In order to ensure internal audit efficiency and having in view the changes occurred at Romgaz during 2018, the specific internal regulations were updated and adjusted (implementing regulations that are specific for Romgaz, operational procedures and quality enhancement program for the internal audit activity). Company’s Policies and Objectives related to Risk Management In accordance with the Corporate Governance Code, one important role played by the company’s management is to ensure that an efficient risk management system is in place. One major concern of the management is to raise the awareness on the objectives of the risk management process, the necessity of direct implication in the risk management process, as well as the alignment to the latest practices in the sector by complying with the applicable law, standards and norms related to such process. The company’s risk management system is implemented in accordance with:  Government Ordinance no.119/1999 (Article 4) on the internal control and the preventive financial control;  Law no. 234 of December 7, 2010 amending and supplementing Government Ordinance No. 119/1999,  General Secretariat of Government Ordonnance No. 400 of June 12, 2015 for approval of Public Entities Internal Management Control Code.  International Standard ISO 31010:2009: “Risk management – risk assessment techniques”;  International Standard ISO 31000:2009: “Risk management/Principles and guidelines”;  Romanian Standard SR Guidelines 73:2009: “Risk management-Vocabulary”.  General Secretariat of Government No. 600 of April 20, 2018 for approval of Public Entities Internal Management Control Code. Consequently, in compliance with the risk management process, the company systematically analyses, at least once a year, the risks related to its objectives and activities and prepares adequate remedy plans in order to mitigate the possible consequences of such risks, and appoints employees responsible for implementing those plans. Page 72 of 80 2018 Consolidated Board of Directors’ Report Moreover, the risk management system implemented within the company is an integral part of the decision making process by setting the requirement to use a risk management analysis when drafting any document (technical projects, execution projects, reservoir studies). The main benefits of the risk management process is the improvement of the company’s performance by identifying, analysing, assessing and managing all risks within the company, in order to minimize the negative risk consequences or to increase the positive risk consequences, as the case may be. A risk management department has been established for an efficient assessment of the company’s risks. One major task of this department is drafting the company’s final documents in terms of risk management: Final Risk Register, Final Risk Report, Final Measure Implementation Plan and the Company’s Risk Profile. Three role levels are set up in the risk management system:  base level, represented by those who identify risks and by the risk managers (head of each organizational unit) who are responsible for preparing risk management documents related to the level of the unit they manage;  middle level, represented by the company’s middle management, who together with the heads of the organizational units form the Risk Management Commission that facilitates and respective direction/department/division; the management process within coordinates the  high level, represented by the executive upper management through the Monitoring Commission that approves the company’s risk appetite and risk profile in accordance with its objectives. General scope of the risk management activity: 1. setting the general uniform framework for risks identification, analysis and management; 2. providing the appropriate tool for a controlled and efficient risk management; 3. describing the manner in which control measures are set and implemented in order to prevent the occurrence of negative risks. Some of the analysed risk categories are: financial risks, market risks, occupational health and safety risks, personnel risks, risks related to information systems, and legal and regulatory risks. All risks are analysed from following perspectives: the specific objective that the risk refers to;   causes of risk occurrence;  consequences further to risk materialization;  occurrence probabilities;      risk materialization impact; risk exposure; risk response strategy; recommended control (remedy) measures; residual risks remaining after treatment of initial risks. Risk exposure The Company is exposed to a variety of financial risks: market risk (which includes foreign currency risk, inflation risk, interest rate risk), credit risk, liquidity risk. The Company’s risk management program is focused on the financial market’s unpredictability and seeks to minimize, within some limits, the potential bad consequences on the Company’s financial Page 73 of 80 2018 Consolidated Board of Directors’ Report performance. However, this approach does not prevent the losses that occur outside these limits in case of some significant variations on the market. The Company does not use derivatives in order to cover the exposure to some risks. The Company is exposed to foreign currency risks as a consequence of the exposure to different foreign currencies. The financial assets that expose the Company to a potential credit risk comprise mainly trade receivables. The Company’s policies provide that the sales are made to clients with a low credit risk. Also, the sales must be guaranteed either by advanced payments or by letter of bank guarantee. The net value of the receivables, after the impairment of doubtful debts, represents the maximum value exposed to credit risk. The Company has a risk concentration related to its 4 biggest clients, which together represent 89.55% from the net receivables balance on December 31, 2018 (the biggest 4 clients: 91.25% on December 31, 2017). Even though the collection of receivables might be affected by economic factors, the Company’s management believes that there is no significant risk of loss for the company, besides the impairment of doubtful debts, already established. The Company management is responsible for the liquidity risk management. The company management established a suitable framework for liquidity risk management for the Company’s short, medium and long-term financing and for complying with the provisions for liquidity risk management. The Company manages liquidity risk by maintaining an adequate level of the reserves by continuous monitoring of the forecasts and present cash flow and by connecting the profile of financial assets maturity with those of the financial debts. Commercial risks to which the Company is exposed are continuously evaluated by the risk management system. A new vision is about to be implemented in this respect so that the market risks impact, quantitative as well as price risks, to which the Company is naturally exposed in its trading activity, will be systematically and continuously evaluated and quantified, evaluated and minimized/remedied, as the case may be. The main risks identified are the quantitative ones (volatility of the demand/offer ratio on the market) with consequences in underselling and overselling, as well as price risks, inherent on a volatile market, emerging under the aspect of liquidity but also influenced by a multitude of internal factors (regulating/political) and also external factors (related to the sources of import). At present, one of the main risk factors with direct consequences on the company’s commercial outcome is the political and regulations risk. The Company uses all available instruments in order to minimize/remedy this risk by means of dialogue with the competent authorities, in the phase of drafting the regulating documents as well as afterwards in the phase of enforcement. During 2018, the regulation framework suffered major changes related to adopting an European market model regarding the Network Code, as well as changes of the primary legislation by amending in two steps Law No. 123/2012. The last amendment, operated by Government Ordinance No. 114/2018 establishes a maximum natural gas sale price after April 1 2019, but also tax measures that fall in the responsibility of the energy operators. These consequences are evaluated/remedied by the company in order to minimize the effects. Internal control In Romgaz, the internal control system operates in a control environment continuously changing that requires the adjustment of control at the level of every activity, differentially and integrative, established in relation to the company’s interests. Internal control is a process carried out by personnel at all levels, Board of Directors, executive management, entire personnel. Romgaz internal management control system is developed and implemented in order to reach the following objectives: Page 74 of 80 2018 Consolidated Board of Directors’ Report - compliance with legal regulation, with internal rules, with contracts and administrative and jurisdictional decisions applicable to the company’s activity; - fulfilling Romgaz objectives under effectiveness, economy and efficiency conditions; - protect Romgaz patrimony against losses due to errors, waste of money, fraud or abuse; - development and maintenance of collection, storage, processing, updating and distribution of financial and management data and information, as well as of proper systems/procedures to inform the public. Drafting, implementation, development and assessment of internal/management control system for Romgaz are achieved in compliance with the provisions set in Government Ordinance No. 119/1999 and with the standards provided by SGG Order No. 600/2018. 2018 internal control management system development/enhancement actions:  Romgaz adherence to the principles and fundamental values promoted by the National Anticorruption Strategy 2016-2020 – elaborate the Integrity Plan no. 47/01.02.2018 posted on the company’s website - correlated with the Development Program of the Internal Management Control for 2018;  Analysing and identifying the sensible job positions at every organisational unit level compliant with Procedure PS – 16. job positions Ed3/Rev.0/05.12.2018. The risks identified in the analysis were centralized at the beginning of 2019 and will be submitted to the Monitoring Committee, which will draft the Inventory of sensible job positions and the List of the persons in these jobs after the debates and the final vote. Inventory of sensible  Preparing and disseminating a guide on internal management control system so that the employees that are in management positions know the new regulations provided in Order SGG NO. 600/2018 and increasing the awareness on anticorruption education of all the employees, correlated with intensifying the internal management control system activity of all organisational units managers. The dissemination was carried out by email and within the meetings held at the headquarters and Romgaz branches during December 2018;  Updating procedure 18PO-03 „Coordinating and monitoring the internal management control system development „approved on 13.12.2018;  Updating instruction 18IL-01 „Internal management control system self assessment” from 13.12.2018;  Preparing a training project in order to improve risk management. Two activity areas were selected within this project: trading and purchase/investments. The project started in June 2017 and ended in July 2018;  Draft and update Romgaz Risk Register. According to the self-assessment results for the implementation of Internal/Management Control System, in 2018 (in relation to the 16 internal/management control standards provided in Order no. 600/2018), the Internal/Management Control System is compliant. Romgaz’s Code of Conduct was prepared first in 2013. The periodical reports on the indicators relevant for compliance with the rules of conduct have been prepared by the person responsible with monitoring the compliance with the Code of Conduct and have been posted on the intranet webpage of the Company. Subsequently, considering the need to comply with the legal requirements on corporate governance, internal control and National Anticorruption Strategy, the company’s executive management updated the Code of Conduct. The updated document – SNGN Romgaz SA Ethics and Integrity Code – was approved by BoD Decision No.47 of October 1, 2018. Page 75 of 80 2018 Consolidated Board of Directors’ Report The most important amendments/supplements of this Ethics and Integrity Code are the following: conflict of interests, trade of company’s shares, compliance with laws on competition, integrity insurance and preventing corruption deeds, prevention and reporting frauds, money laundry etc. Romgaz activities in the field of social responsibility are performed voluntarily, beyond the legal responsibilities, the company being aware of its role in society. Social responsibility means for Romgaz a business culture including business ethics, customer rights, economic and social equity, environmental friendly technologies, fair treatment of workforce, transparent relationship with the public authorities, moral integrity and investment in the community. Moreover, Romgaz supports a sustainable development of the society and community, through financial support/ total or partial sponsorship for some actions and initiatives in the following main domains: education, social, sport, health and environment. Granting financial support/partial or total sponsorship for actions and initiatives, within the budgeted limits, Romgaz has shown a pro-active attitude of social responsibility and increased the awareness of the parties involved as regards to the importance and benefits of social responsibility actions. In 2018, Romgaz supported, totally or partially, actions and initiatives stipulated in Government Emergency Ordinance (“GEO”) no.2/2015, complying with the budget, as follows: Expenses/activities Achieved (RON) Total of sponsorship expenses, out of which  Expenses with sponsorships in medical and health domains - Article.XIV letter.a)  Expenses with sponsorships in education and sport domains – Article XIV letter.b) – total, out of which: o For Sports Clubs  Sponsorships for other actions and activities - Article.XIV letter.c) 13,999,460 5,599,460 6,900,000 5,990,000 1,500,000 The detailed description of the projects as regards the sponsorship provided in GEO no.2/2015 is included in the Annual Report on Social Responsibility and Patronage for 2018 published on www.romgaz.ro at “Investor Relations - Corporate Governance - Social Responsibility”. The projects carried out in 2018 had besides the positive impact on the environment and community, an important benefit for the company by inspiring the organisational culture and the goodwill being a responsible employer, and also an involved social partner, promotor of a transparent and open relationship. This is positively reflected in Romgaz image, domestically and internationally, both for investors, central and local authorities and for other stakeholders. When supporting/performing projects, actions, social responsibility initiatives, Romgaz took into consideration the provisions of Sponsorship Policy and Sponsorship Guide applicable in 2018, published on the company’s website at Social Responsibility. (https://www.romgaz.ro/en/content/social-responsibility-0 ) Page 76 of 80 2018 Consolidated Board of Directors’ Report Legal Framework The politics and remuneration criteria of the executive and non-executive members of the Board of Directors are based on the following norms:  Law no. 31/1990 on trading companies, as subsequently amended and supplemented;  GEO no. 109/2011 on corporate governance of public enterprises, as subsequently amended and supplemented, approved by Law no.111/2016;  The company’s Articles of Incorporation, approved by the Extraordinary General Meeting of Shareholders no. 9/October 28, 2016 and no.4/ August 9, 2017 (last update of the Articles of Incorporation);  Resolution No. 9/ December 20, 2017 of the Ordinary General Meeting of Shareholders approving the director agreements for interim members of the Board of Directors;  Resolution No. 8/ July 8, 2018 of the Ordinary General Meeting of Shareholders approving the form of the contract signed with the directors elected for a 4 years mandate;  Resolution No. 14/ August 26, 2013 of the Ordinary Meeting of Shareholders establishing the general limits for the director general remuneration, active member of the BoD;  Resolutions No. 7/ February 22, 2018 and No. 29/ June 14, 2018 approving the Contracts of Mandate of the interim director general;  Resolution No. 45/ October 2018 appointing the Director General for 4 years and approving the Contract of Mandate;  Resolution No. 35/ December 14, 2017 approving the Contract of Mandate of the Chief Financial Officer;  Resolution No. 39/ August 28, 2018 approving the Contract of Mandate for a determined period from 28.08.2018 until 02.11.2021. For compliance with the Requirements of BVB Corporate Governance Code and GEO no. 109/2011, Romgaz drafted the Policy on remuneration, which shall be submitted for approval of the Board of Directors. The structure of the remuneration granted to non-executive directors The fixed monthly remuneration as well as the variable one were established according to applicable legal provisions (detailed in the 2018 Annual Report on remunerations and other benefits granted to SNGN Romgaz SA directors and managers) and provided in the Director Agreement of each directors, as approved by the applicable GMS resolution. The fixed monthly remuneration for 2018 was established at a monthly gross allowance equal to two times the average on the last 12 months of the monthly gross salary for the activity carried out according to the main activity objective from the national economy, communicated by the Statistics National Institute before the appointing. The variable remuneration provided in the director’s agreement, the management plan and the financial and nonfinancial indicators approved by the General Shareholders Meeting in 2019. The variable element, as well as the performance objectives and indicators revision conditions will be the object of an addendum at the directors’ agreement. Page 77 of 80 2018 Consolidated Board of Directors’ Report The structure of the remuneration granted to the executive director, namely Director General While acting as executive member of the Board of Directors, the Director General concluded both a director agreement for the membership in the Board and a contract of mandate for the position as Director General. The Director General was entitled strictly to payment of the remuneration according to the contract of mandate. The structure of the remuneration granted to managers The monthly fixed remuneration, as well as the variable remuneration were granted under the legal applicable provisions (detailed in the Annual Report 2018 on remunerations and other benefits granted to SNGN Romgaz SA directors and managers), such being provided in the Contract of mandate of each manager, and approved by the Board resolutions. The monthly fixed remuneration for 2018 was set at a monthly gross allowance six times the average over the last 12 month from the monthly gross average salary for the work carried out in accordance with the company’s main business as communicated by the National Institute of Statistics, prior to nomination. The fixed allowance is updated at the beginning of each year depending on the data provided by the National Institute of Statistics. The variable remuneration established according to the fulfilment of financial and nonfinancial performance indicators and objectives, will be the scope of an addendum to the contract of mandate. In 2018 the Chief Executive Officer and the Chief Financial Officer did not benefit of variable remuneration. Romgaz prepares a separate report for financial year 2018, that will be public on the company’s website by the end of June 2018, according to the Order of the Ministry for Public Finances no. 2844/201614 (chapter 7, item 42, para (1)). 14 Order of the Ministry of Public Finances no.2844 of December 12, 2016 on approving Accounting Regulations compliant with the International Financial Reporting Standards Page 78 of 80 2018 Consolidated Board of Directors’ Report Directors Agreements After the expiration of directors agreements who were appointed in 2013 for 4 years by the General Meeting of Shareholders, interim directors have been successively appointed. The directors’ agreements approved by the General Meeting of Shareholders do not include provisions on the performance indicators and criteria. Currently the elaboration of the Company Governance Plan is in progress. Following the approval of the Governance Plan will start the actions for convening the General Meeting of Shareholders for negotiation and approval of financial and non-financial performance indicators to be provided in the directors’ agreement by and addendum. Contract of Mandate The Board of Directors appoints on December 14, 2017 under Resolution No. 37, Mr. Cindrea Corin Emil as interim Director General for 4 months, with the possibility to extend it up to maximum 6 months. The Board of Directors decided under Resolution no. 19 of April 12, 2018 to extend the Contract of Mandate of the Director General by 2 months, until June 14, 2018. The contract of mandate concluded with the Board of Directors does not include performance indicators and criteria. The Board of Directors appointed on June 14, 2018 under Resolution No. 29, Mr. Volintiru Adrian Constantin as Chief Executive Officer for four months, and the Board of Directors appointed under Resolution No. 45 of October 1st, 2018 Mr. Volintiru Adrian Constantin as Chief Executive Officer of the company for a four-year mandate. The Board of Directors appointed on November 2nd, 2017 under Resolution No. 30 Mr. Bobar Andrei as Chief Financial Officer. The Board of Directors appointed on August 28, 2018 under Resolution No. 39 Mr. Bobar Andrei as Chief Financial Officer for a limited period, from August 28, 2018 until November 2nd, 2021. The contracts of mandate concluded between the Board of Directors and the Chief Executive Officer, and the Chief Financial Officer, respectively, do not provide the performance indicators and criteria. They will be negotiated and included in the contracts of mandate by an addendum, after completion and approval of the Governance Plan of the Company for the duration of the mandate. The timeline of the director agreements, the contracts of mandate and of the Governance Plan is the following:  July 6, 2018 – GMS Resolution no.8/2018 appointed by cumulative vote the members of the Board of Directors (BoD) for a 4 year mandate.  July 27, 2018 – BoD analysed and approved the governance component of the Governance Plan, in compliance with Art. 30, para.(1) of GEO no.109/2011;  August 28, 2018 – BoD appointed under Resolution no.39, Mr. Bobar Andrei as Chief Financial Officer for a limited period, from August 28, 2018 until November 2nd, 2021; Page 79 of 80 Board of Directors’2018 Report Annex 1 Table of Compliance with the Bucharest Stock Exchange Code of Corporate Governance Does not comply or partially complies Reasons for non compliance/Explanations on compliance 3 4 Governance code provisions Complies A.1 A.2 1 All the companies must have an Internal Regulation of BoD that includes the reference terms/ the responsibilities of the Board and the company’s key management positions, and that applies, among others, the General Principles in section A. The ToR of the BoD should include provisions for the management of conflict of interest stating that members of the Board should notify to the Board any conflicts of interest which have arisen or may arise and should refrain from taking part in the discussion (including by not being present where this does not render the meeting non-quorate) and from voting on the adoption of a resolution on the issue which gives rise to such a conflict of interest. A.3 A.4 The BoD has at least five members. The majority of the members of the BoD is non- executive; not two non-executive than members of the BoD must be independent. less Each independent member of the BoD must submit a statement at the time of his/her nomination for election or re-election, as well as whenever a change in his/her status occurs, indicating the elements on which it is deemed independent in terms of its character and his judgment. A.5 A.6 A.7 in and companies to potential investors prior A Board member’s other relatively permanent professional commitments and engagements, including executive and non-executive Board positions non-profit organizations, should be disclosed to shareholders and to his/her nomination and during his/her mandate. Any member of the BoD should submit to the Board information on any relationship with a shareholder who holds, directly or indirectly, shares representing more than 5% of all voting rights. This also applies to any relationship which may affect the member's position on matters decided by the Council. The company should appoint a Board secretary responsible for supporting the work of the BoD 2 x x x x x x x Board of Directors’2018 Anexa 2 Governance code provisions Complies Does not comply or partially complies Reasons for non compliance/Explanations on compliance A.8 1 The corporate governance statement should inform on whether an evaluation of the Board has taken place under the leadership of the chairman or the nomination committee and, if it has, summarize key action points and changes resulting from it. The company should have a policy/guidelines regarding the evaluation of the BoD containing the purpose, criteria and frequency of the evaluation process. 2 3 x partially A.9 A.10 A.11 B.1 B.2 The corporate governance statement should contain information on the number of meetings of the Board and the committees during the past year, attendance by directors (personally and in their absence) and a report of the Board and committees on their activities. The corporate governance statement should contain information on the independent members of the Board of Directors. The BoD should set up a nomination committee formed of non-executives, which will lead the process for Board appointments and make recommendations to the Board. the precise number of The majority of the members of the nomination committee should be independent The Board should set up an Audit Committee and at least one member should be an independent non- executive. The Audit Committee should be formed of at least three members and the majority should be independent. The majority of members, including the chairman, should have proven an adequate qualification relevant to the functions and responsibilities of the Committee. At least one member of the Audit Committee should have a proven and appropriate accounting and auditing experience. The Chairperson of the Audit Committee should be an independent non-executive member. x x x x x 4 The section on Statement on in corporate governance the Annual Board of Directors’ Report includes statements the evaluation of the BoD. Romgaz the Board Evaluation Policy and it was approved by BoD on 12 March 2019. prepared on Following its approval the Policy regarding evaluation the was published on site. company’s web Pagina 2 din 7 Does not comply or partially complies 3 Board of Directors’2018 Governance code provisions Complies 1 B.3 Among its responsibilities, the Audit Committee should undertake an annual assessment of the internal control system. B.4 The provision mentioned in section B.3 should consider the effectiveness and scope of the internal audit function, the adequacy of risk management and internal control reports to the Audit Committee of the Board, and management’s responsiveness and effectiveness in dealing with the failures and weak points identified during the internal control and submit relevant reports to the Board. B.5 The Audit Committee should review conflicts of interests in transactions of the company and its subsidiaries with affiliated parties. 2 x x x B.6 the The Audit Committee should evaluate efficiency of the internal control system and risk management system x Anexa 2 Reasons for non compliance/Explanations on compliance 4 responsibility of for The the monitoring effectiveness the company’s internal control, internal audit and risk is management specified in the ToR of the Audit Committee. systems 2018 For the Audit Committee performed the annual assessment of the internal control system. See section B.3 This provision is already mentioned under Art. 8, par. 2 of CCG ROMGAZ. the Audit The ToR of Committee approved by the BoD in the meeting of May 14, contains provisions in relation to this obligation. 2018 Also, has Romgaz developed a Policy on related party transactions and this was approved by the BoD on March 20, 2019. Following the approval it was published on the company’s website. 2018, responsibility the Audit For Committee performed evaluation on conflicts of interest whenever was the case. for The the monitoring effectiveness the company’s internal control systems, internal audit and risk management systems is specified in the ToR of the Audit Committee. of Pagina 3 din 7 Board of Directors’2018 Anexa 2 Governance code provisions Complies Does not comply or partially complies Reasons for non compliance/Explanations on compliance 1 2 3 4 B.7 B.8 B.9 B.10 B.11 B.12 The Audit Committee should monitor the application of statutory and generally accepted standards of internal auditing. The Audit Committee should receive and evaluate the reports of the internal audit team. The Audit Committee should report periodically (at least annually) or adhoc to BoD with regard to the reports or analyses undertaken by the committee. No shareholder may be given undue preference over other shareholders with regard to transactions and agreements made by the company with shareholders and their related parties The BoD should adopt a policy ensuring that any transaction of the company with any of the companies with which it has close relations that is equal to or higher than 5% of the company’s net assets (as stated in the latest financial report), it should be approved by the Board following a mandatory opinion of the Audit Committee and fairly disclosed to the shareholders and potential investors, to the extent such transactions fall under the category of events subject to disclosure requirements. (internal structural division The internal audits should be carried out by a separate audit department) within the company or by hiring an independent third-party entity The Internal Audit Department should functionally report to the BoD via the Audit Committee. For administration purposes and for the scope related to the obligations of the management to monitor and mitigate risks, the Internal Audit Department should report directly to the Director General. x x x x x x 2018, For the Audit Committee performed the annual assessment on the internal control system and on the risk management system. The provision is already mentioned under Art. 9 of CCG ROMGAZ and it will be the implemented by Policy on related party transactions, policy approved by the BoD on March 20, 2019. Following the approval, the policy was published on the company website. Pagina 4 din 7 Does not comply or partially complies 3 Board of Directors’2018 Governance code provisions Complies 2 x x C.1 1 The company should publish on its website the Remuneration Policy. The Remuneration Policy must be formulated so as to allow the shareholders to understand the principles and arguments underlying the remuneration of the members of the Board and of the General Director. Any significant change occurred in the Remuneration Policy must be posted in due time on the company's website. The company must include in its Annual Report a statement on the implementation of this Policy during the annual period under review. The Report on Remuneration must present the implementation of the Remuneration Policy for persons identified in this Policy during the annual period under review.. D.1 The company should establish an Investors Relation Department - indicating to the public the responsible person/persons or the organizational unit. Besides the information required by the legal provisions, the company should also include on its corporate website a dedicated Investor Relations section, both in Romanian and English, with all the relevant information of interest for investors, including: D.1.1 Main corporate the articles of regulations: incorporation, general meeting of shareholders procedure; x partially Anexa 2 Reasons for non compliance/Explanations on compliance 4 The provision is already mentioned under Art. 11, par. 5 of CCG ROMGAZ. The section Statement on in corporate governance the Annual Board of Directors’ Report includes the statements regarding implementation the of Remuneration Policy and the the remuneration of Directors of Board members the of and directors. A separate document on Remuneration Policy was drafted and approved by the BoD on March 12 2019. Following the approval, the policy was published on the company website. The Annual Report on Remuneration is presented together with the Annual Board of Directors’ Report. It presents details of the principles applied for the determination the remuneration of the Board Members and directors. of on the GMS Items organization are presented to shareholders at each meeting. A separate document on the GMS Procedure and Rules was prepared and it will be submitted for BoD approval in a meeting subsequent to this of statement conformity. Pagina 5 din 7 Board of Directors’2018 Anexa 2 Governance code provisions Complies 1 D.1.2 Professional CVs of the members of the company’s governing bodies, other professional commitments of Board member’s, including executive and non- executive Board positions in companies and non- profit organizations. D.1.4 related information D.1.3 Current reports and periodic reports (quarterly, semi-annual and annual reports) – at least those specified in Note D.8- including current reports with detailed to non- compliance with the Bucharest Stock Exchange Code of Corporate Governance Information related to GMS: the agenda and supporting materials; the procedure approved for the election of BoD members, the arguments for the proposal of candidates for the election to the Board together with their professional CVs; shareholders’ questions related to the agenda and the company’s answers, including the decisions taken by the GMS Information on corporate events (such as payment of to shareholders, or other events leading to the acquisition or limitation of rights of a shareholder) including the deadlines and principles applicable to such operations. The information will be published within a period of time allowing investors to take investment decisions. distributions dividends D.1.5 other and D.1.6 The names and contact data of the persons who to provide knowledgeable should be able information on request; D.1.7 Corporate presentations (for example presentations for investors, presentations on quarterly results etc.), financial statements (quarterly, semi-annual, annual), audit reports and annual reports. D.2 D.3 D.4 D.5 The company will have a policy for annual cash distribution of dividend or other benefits for shareholders, proposed by the Director General and adopted by the BoD as the company’s Guideline on net profits distribution. The principles of the annual distribution of dividends policy to Shareholders will be published on the company’s website. The company shall adopt a policy with respect to forecasts, whether they are made public or not. The Policy on forecasts will determine the forecasts’ frequency, period and content and will be published on the company’s website. GSM rules should not restrict the participation of shareholders in general meetings and the exercising of their rights. The modification of rules will become effective no sooner than the following shareholders’ meeting. The the external shareholders’ meetings when their reports are presented there. auditors should attend 2 x x x x x x x x x x Does not comply or partially complies Reasons for non compliance/Explanations on compliance 3 4 auditors are External invited to attend GMS meetings when their reports Pagina 6 din 7 Does not comply or partially complies 3 Anexa 2 Reasons for non compliance/Explanations on compliance 4 are presented meeting. in said Board of Directors’2018 Governance code provisions Complies D.6 D.7 D.8 D.9 D.10 1 The BoD should present to the GMS a brief assessment of the internal controls and significant risk management system, as well as opinions on issues subject to resolution at the general meeting. Any professional, consultant, expert or financial analyst, may participate in the shareholders’ meeting upon prior invitation from the BoD. Accredited journalists may also attend the GMS, unless the Board decides otherwise. The quarterly and semi-annual financial reports should include information in both, Romanian and English, regarding the key drivers influencing the change in sales, operating profit, net profit and other relevant financial indicators, both on quarter- on-quarter and year-on-year terms. the Chairman of least The company should organize at two meetings/conference calls with analysts and investors each year. The information presented on these occasions should be published on the company website in the IR section at the time of meetings/teleconferences. If the company supports various forms of artistic and activities, educational or scientific activities, and considers the resulting impact on the innovativeness and competitiveness of the company is part of its business mission and development strategy, it should publish the policy guiding its activity in this area. expression, cultural sport 2 x x x x x Legend: = General Meeting of Shareholders GMS BSE = Bucharest Stock Exchange BoD CCG CCG ROMGAZ = the Code of Corporate Governance of S.N.G.N. ROMGAZ S.A., approved on January 28, 2016. CV ToR = Board of Directors = Code of Corporate Governance = Curriculum Vitae = Terms of Reference Pagina 7 din 7 0 1 2 3 4 5 SNGN “ROMGAZ” SA Annex no.2 Litigations (status on December 31, 2018) No. File No./ Court of Law Case Plaintiff Defendant Amount (RON) Description 1 3878/110/2007 - Bacau County Court of Law 2 insolvency proceedings 513/87/2012 - Teleorman County Court of Law insolvency proceedings 3 Romgaz - creditor 4 5 S.C.Uzina Termica Comanesti S,A - debtor 328,645.82 6 Decision no. 318/2009 of Bacau County Court of Law allowed SNGN ROMGAZ SA‘s request to initiate insolvency proceedings. Currently, specific insolvency proceedings acts are performed. A hearing is set for the continuation of procedure. Romgaz - creditor SC Termaserv SRL Alexandria - debtor 7,200,862.02 2177/99/2012 - Iasi County Court of Law insolvency proceedings Romgaz - creditor SC CET Iasi SA - debtor 46,270,752.91 1318/87/2013 - Teleorman County Court of Law insolvency proceedings 10917/107/2010/a2 - Alba County Court of Law insolvency proceedings Romgaz - creditor SC Termaconfort SRL Rosiorii de Vede - debtor 1,888,200.99 Romgaz - creditor SC GHCL UPSOM ROMANIA SA- debtor 68,573,109.11 interest). Specific Receivables: RON 7,200,862.08 (on December 31, 2011 - equivalent value of delivered gas, penalties, insolvency procedures are performed. A hearing is set for the continuation of procedure. Receivables: RON 46,270,752.91 (equivalent value of delivered gas, late payment penalties, interest, court fees). Civil court resolution no. 697/April 17, 2012 issued by Iasi County Court of Law established the initiation of the general insolvency procedure for the debtor, allowed the lodgement of claim as formulated by Romgaz, the insolvency procedure is continued Receivables: RON 1,888,200.99 (delivered gas price, late payment penalties, interest/penalties calculated according to Payment Schedule Agreement, fees related to enforcement procedure). to initiate On November 29, 2010, SNGN ROMGAZ SA filed against SC GHCL UPSOM ROMANIA SA an application insolvency proceedings. (File no. 10917/107/2010). SNGN ROMGAZ SA requested the acceptance of certain, liquid and due receivables in amount of RON 60,841,881.14 (representing the equivalent value of natural gas, penalties calculated according to Payment Schedule Agreement no. 100/May 5, 2009, late payment penalties calculated until February 28, 2011, equivalent value of assignment of receivables according to Assignment of Receivables Contract no. 1/June 2, 2009). Against decision no. 351/F/May 18, 2011, the debtor filed recourse. Alba Court of Appeal Law allowed the recourse, ruled the cassation of the decision and sent the case for retrial at Alba County Court of Law. 1 Next procedural deadline 7 February 07, 2019 January 23, 2019 March 12, 2019 January 23, 2019 January 14, 2019 No. 6 File No./ Court of Law 9526/3/2016 Bucharest County Court of Law Case Plaintiff Defendant Amount (RON) Description insolvency proceedings Romgaz - creditor SC Termoelectrica Bucuresti - debtor PEET SA 42,665,005.29 Allows the request of SC PEET TERMOELECTRICA S.A. Bucuresti to initiate bankruptcy procedures in simplified form. Allows Romgaz lodgement of claims in amount of RON 42,665,005.29. Bankruptcy procedure continues. Hearings are set in this respect. 7 8028/95/2013 - Gorj County Court of Law insolvency proceedings Romgaz - creditor 8 6991/236/2009 - Giurgiu Court of Law Uzina S.C. Termoelectrica Giurgiu - defendant (RON Claims 45,973.26 late representing penalty payment calculated in accordance with the Gas Sales Contract no. 14/2008) S.C. Grup de Comert si Investitii SRL (by the official receiver- Divizia de Reorganizare Judiciara si Executare Creante IPURL) - debtor Romgaz - plaintiff 454,506.95 On October 24, 2013, Gorj County Court of Law allowed the request of the debtor S.C.Grup de Comert si Investitii SRL requesting the initiation of insolvency proceedings in order to reorganize its activity. Acts specific to the insolvency procedure are performed. Hearing is set for the continuation of proceedings. On September 29, 2018 BPI 18169 published the Creditors’ Minutes of Meeting approving the closing of insolvency procedure and the continuation of activity in compliance with the reorganization plan. 45,973.26 Amount of claims: RON 45,973.26 - late payment penalties calculated according to Natural Gas Sale Contract No.14/2008. Recourse. Recourse dismissed by Giurgiu County Court of Law. 9 598/57/2011 - Sibiu County Court of Law action the Bring before administrative appeal Romgaz - plaintiff Court of Accounts of Romania - defendant 102,357,059 SNGN ROMGAZ SA brought the action before administrative court requesting the annulment of decisions issued by the Romanian Court of Accounts – Sibiu Chamber of Accounts, namely: Note no.3/2011; Decision No.10/24.01.2011;Finding report registered at SNGN Romgaz SA under no. 2033/10.12.2010. According to Ruling no. 950/2016 the action was denied. Recourse was filed. On January 10, 2018 the court allowed the recourses filed by the plaintiffs SNGN Romgaz S.A. and by the defendants CAMERON INTERNATIONAL CORPORATION, SC INDUSTRIAL TRADING SRL, SC INSPET SA PLOIEŞTI, SC CONDMAG SA, SC PETROSTAR SA against ruling 950/2016 issued by Sibiu County Court of Law. It annuls part of the ruling and retains the file for retrial of findings and of measures no. 4, 5, and 6 of Decision 10/January 24, 2001 issued by Sibiu Court of Accounts. The 2 Next procedural deadline February 26, 2019 Finalized, enforcement of judgement, the receivables is partially recovered, amount to recover: RON 5.746.67 January 23, 2019 No. File No./ Court of Law Case Plaintiff Defendant Amount (RON) Description remaining part of the Ruling 950/2016 issued by Sibiu County Court of Law is maintained. Dismisses the recourse filed by SNGN Romgaz S.A. against Ruling no. 1421/2017 issued by Sibiu County Court of Law. Final ruling no. 1/2018 dated January 10, 2018. On the trail date set on May 23, 2018, the court allowed technical expertise and accounting expertise. A date was set for filing the expertise reports. In the summons, SNGN ROMGAZ SA requested the court to compel the defendants to a jointly payment of monies. In the summons, SNGN ROMGAZ SA requested the court to compel the defendants to pay jointly the amount of RON 43.059.199, representing an undue payment in connection with labour contract no. 217/2006 20,052,457 43,059,199 Next procedural deadline February 19, 2019 stay of trial proceedings 15,596,065 In the summons, SNGN ROMGAZ SA requested the court to compel the defendants to a jointly payment of monies. stay of trial proceedings 23,645,128 In the summons, SNGN ROMGAZ SA requested the court to compel the defendants to pay. stay of trial proceedings 7852/85/2013 -Sibiu County Court of Law Claims payment -undue Romgaz - plaintiff 8259/62/2013 - Brasov County Court of Law Claims payment -undue Romgaz - plaintiff 8258/62/2013 - Brasov County Court of Law Claims payment, contract no.14/2009 -undue works Romgaz - plaintiff 8260/62/2013 - Brasov County Court of Law Claims payment -undue Romgaz - plaintiff SC APROV SA; SC ROMOIL SA - defendant SC Condmag SA; Cameron International Corporation - defendants SC INSPET SA; SC Condmag SA; SC Petrostar SA; SC Industrial Trading SRL - defendants SC Condmag SA - defendant 10 11 12 13 14 19495/3/2013 - Bucharest Court of Law 15 2541/96/2013 - Harghita County Court of Law claims (equivalent value of delivered and unpaid natural to gas, according Gas Sale Contract no. 2/2010) insolvency proceedings Romgaz - plaintiff SC G-ON Eurogaz SRL - defendant 11,920,527.50 Claimed amount: RON 11,920,527.50 (equivalent value of delivered and unpaid natural gas) The last immovable property sale auction (guarantee) was finalized. The proposal is to complete the compulsory enforcement file and to initiate insolvency proceedings. compulsory enforcement Romgaz - creditor SC MAVEXIM SRL - debtor On the trial date of June 25, 2013, the court allowed the debtor’s request to file for insolvency (in compliance with art. 27 paragraph 5 of law 85/2006). The debtor insolvency procedures. The initiated procedure continues. Goods are assesses. Goods are sold. January 30, 2019 3 No. 16 File No./ Court of Law 781/85/2014 Sibiu County Court of Law (Bucuresti Court of Law file no. 28323/3/2014 Case Plaintiff Defendant Amount (RON) Description Next procedural deadline Claims Romgaz - plaintiff Electrocentrale - Bucuresti SC SA defendant 240,280,906 Amount of claim: RON 240,280,906.05. The court allows the summons and issued ruling 2514/May 13, 2015. The defendant files an appeal. The court of appeal allows the appeal filed by SC Electrocentrale Bucuresti S.A. through its Official Receiver KPMG Restructuring SPRL, partly changes the appealed ruling meaning that it partly allows the case and compels the defendant to pay RON 40,511,915.91 as legal interest. Recourse may be filed within 30 days from communication of ruling no. 1176/June 26, 2017. Recourse filed. On June 05, 2018, the High Court of Cassation and Justice stayed the recourses filed by the parties according to Law 85/2014, art. 75, par. 1. 17 1540/215/2013 - Craiova Court of Law Claims Prunoiu Gheorghita - plaintiff Romgaz Ploiesti - defendant - SISGN 18 19 1463/108/2012 – Arad Court of Law Insolvency proceedings Romgaz – SISGN Ploiesti – creditor SC Amarad SA – debtor 2375/85/2016 Sibiu County Court of Law challenge Romgaz – plaintiff Romanian Court of Accounts – defendant 50,000 According to the summons, the plaintiff requests the decommissioning of pipelines allegedly undercrossing the plaintiff’s land and to compel the defendant to the payment of the equivalent value for non-use of land affected by such pipelines. The case is under stay of proceedings because the plaintiff did not comply with the court’s dispositions. The case is reinstated. A topographical and agricultural expertise was order. Objections were filed and allowed. On November 26, 2018, the sentence is pending. The request was dismissed as unfounded. Right to file a recourse. 42,418.48 Upon the debtor’s request, prepared in accordance with the provision Scope of dispute cannot be evaluated in money of Article 27, paragraph 5 of Law 85/2006, insolvency procedures were initiated. Challenge of Decision no. 26/2016 issued by the Romanian Court of Accounts – Sibiu Court of Accounts. Court of first instance. The Court of Accounts found the following irregularities: 1) Romgaz did not allocate to the financial results the value of certain cancellations representing costs with the abandonment of some investment works for some production wells); 2) delivery on the regulated market of an energy quantity higher than the legal obligation (2013-2015); 3) unjustified settlement of flight tickets; 4) illegal payment of legal assistance services; 5) acceptance for payment of incorrectly performed works; 6) unjustified payment for regular overtime pay. Two relating expertizes were approved in connection with accounting and natural gas matters. Ruling no. 527/2018, the court partially allowed the action filed by Romgaz and ordered the partial annulment of the Courts of Account disposition: irregularities 1, and 2 fully, and partially irregularity 6. Right to file recourse within 15 days from the ruling January 25, 2018 No deadline established 4 No. File No./ Court of Law Case Plaintiff Defendant Amount (RON) Description Next procedural deadline 20 17666/320/2010 – Tg. Mures Court Of Law claims Romgaz - Suc. Tg. Mures – defendant SC Network Press Concept SRL Medias (former RODIPET) – defendant 6,851.25 The defendant failed to meet the contractual obligation to deliver the Romanian Official Journal for Q2 and Q3/2008: 4 subscriptions to Part I, 3 subscriptions to Part I bis and 1 subscription to Part VI, therefore the defendant is obliged to refund RON 6,851.25 (out of which RON 565,70 is VAT). Currently the case is suspended based on Article 36 of Law 85/2006 on Insolvency procedure. stay of trial proceedings communication date. The ruling was communicated. The recourse against the County Court’s Ruling was drafted. Both Parties to the trial filed recourse against the ruling: Romgaz against Sibiu County Court of Law Ruling in connection with irregularities 3-5 and partially 6; the Court of Accounts against Sibiu County Court of Law Ruling in connection with irregularities 1-2 and partially 6. 21 7070/320/2012 –Tg. Mures Court of Law claims Barsan Romulus - plaintiff Romgaz – Suc. Tg. Mures – defendant 22 963/85//2013 –Sibiu County Court of Law claims Romgaz – Suc. Tg. Mures – plaintiff Borda Alexandru – defendant Resolution not communicat ed 88,000 By summons the plaintiff requested the court to compel the payment of the following claims: RON 80,000; RON 30,000; RON 3,000/month; RON 88,000. The cause was postponed to allow the communication of objections to the expertise report The first trial court, Tg. Mures Court of Law, partially allowed the action filed by the plaintiff B.V. (as heir to the deceased B.L.) against the defendant. It compels the defendant to pay the plaintiff the amount of RON 47,460 representing the equivalent value of lack of usage in connection with the 3488sq m piece of land, entitlement number 118206, parcel 12 A 581/1/2 over the past 9 years, calculated until July 3, 2018. It compelled the defendant to pay to the plaintiff starting with July 4, 2018 the amount of RON 5,580/year as equivalent value of lack of usage in connection with the 3488sq m piece of land, entitlement number 118206, parcel 12 A 581/1/2, until the land is brought to its initial usage state and is returned to the plaintiff. Compels the defendant to pay RON 20,728 to the plaintiff as legal expenses: RON 9,793 for stamp duty, RON 945 expert fee for Dirja Marcel, RON 3,040 expert fee for Boca Gligore, RON 6,950 – lawyer’s fee. The other claims of the plaintiff were dismissed as unfounded. 1,307 The case consists of compelling the defendant to refund the plaintiff RON 1,304 representing the holiday allowance and the holiday remuneration for the period he didn’t work and received holiday leave, because after effectuating the holiday leave for the year 2012 (34 days) in March and May 2012, the defendant had a number of 32 enforcement 5 No. File No./ Court of Law Case Plaintiff Defendant Amount (RON) Description Next procedural deadline 23 24 25 26 186/1371/2007 Mureş Commercial Court of Law Insolvency procedure Romgaz – STTM Tg.Mureş – Creditor SC Poliglot Comimpex SRL - Debtor 2899/62/2015 Brasov County Court of Law Insolvency procedure SNGN Romgaz SA –STTM Tg.Mureş – creditor claims 580/1371/2010 – Mures Commercial Court of Law 12236/320/2012 – Tg. Mures Court of Law Romgaz – Suc. Medias – creditor Romgaz – Suc. Medias – plaintiffs SC Condmag SA Brasov, debtor, represented by the Official Receiver Rominsolv SPRL Bucuresti SC Globe Trotters SRL – debtor SC Torpi SRL; SC Manadas SRL – defendands (working days) of unjustified absences, which lead to his disciplinary dismissal. Court allowed the action. The enforcement order was initiated. 6,783.41 As of November 22, 2007, Mures County Court of Law allowed the request for initiating the insolvency procedure against the debtor SC Poliglot Comimpex RL. STTM Tg. Mures is a creditor included in the body of creditors with the amount RON 6,783.41. Deadline established January 31, 2019 70,467.25 STTM Tg. Mures is creditor, its RON 70,467.25 receivable being included in the final body of creditors. Hearing is allowed for continuation of reorganization plan. March 19, 2019 9,206.21 Value of claims: RON 9,206.21 11,575.52 Value of claims: RON 11,575.52 27 3128/257/2013 – Medias Court of Law Claims Romgaz – plaintiff Asociatia sportiva “Dacia Atel” – defendant 28 3127/257/2013 – Medias Court of Law claims Romgaz – plaintiff Asociatia transparenta deciziei administrative Medias – defendant 6 6,247.77 By summons, the court is requested to establish the termination of the Sponsorship Contract no. 178/2011 and, as a consequence, to restore the parties to their initial state by compelling the defendant ASOCIATIA SPORTIVA “DACIA ATEL to pay RON 6,247.77, RON 5,000 as financial support provided under Contract 178/2011. 2,926.64 By summons, the court is requested to establish the termination of the Sponsorship Contract no. 8/February 25, 2010 and, as a consequence, to restore the parties to the initial state by obligating the defendant ASOCIATIA ADMINISTRATIVE MEDIAS” to pay the amount RON 2,926.64. “TRANSPARENTA DECIZIEI March 27, 2019 stay of trial proceedings according to Law 86/2006, article 36 until settlement compulsory enforcement compulsory enforcement Next procedural deadline Finalized No. 29 File No./ Court of Law 3816/320/2018 Medias Court of Law Complaint of violation ROMGAZ-Tg. Mures – petitioner CNADNR –Cestrin Bucuresti 750 Case Plaintiff Defendant Amount (RON) Description 30 30/257/2017- Medias Court of Law Embezzlement Art. 295 Criminal Code SNGN ROMGAZ S.A. – STTM Tg. Mures – civil party claiming damages Tarnu Razvan Cornel- defendant 1,024 According to the summons, Romgaz STTM requested the annulment of the Record of Findings No R18 0138136/February 20, 2018 issued by Cestrin Bucuresti on grounds that the vehicle allegedly belonging to the undersigned circulated without a valid RO-Vignette, given the fact that the vehicle has been previously disposed of by the undersigned. Indictment drafted by the Public Prosecutor’s Office of Medias Court of Law ordered the trial of the defendant Tarnu Razvan charged with embezzlement as stipulated in Art.295 par.1 Penal Code. Romgaz, is civil party claiming damages in amount of RON 1,024, equivalent value of 200 l of fuel stolen by the defendant from the truck with the license plate SB-08-TTM. Civil ruling no. 85/02.04.2018 sentenced Tarnu Razvan to a 2-year imprisonment for embezzlement and orders the conditional suspension of the execution of sentence. It compels the defendant to pay RON1.024 to the civil party claiming damages. Appeal filed by the defendant and by the civil party claiming damages. Appeal result: Ruling 709/03.10.2018 allows the appeal filed by the defendant against penal ruling 85/April 2, 2018 which is entirely dismissed based on article 396 par. 5Criminal Procedure Code in corroboration with article 16 par. 1, letter b, thesis I, Criminal Procedure Code, and orders the investigation of the defendant under charge of embezzlement. The defendant was retained in custody for a 24-hours period. Based on Article 25, par. 5 Criminal Procedure Code, the court leaves the civil claim unsettled. Rejects the appeal filed by the plaintiff against the penal ruling no. 85/April 2, 2018 of Medias Court of Law on grounds of delayed filing. The partial RON100 lawyer fee of the lawyer appointed by office is to be paid from the Ministry of Justice funds. Based on art. 275/par. 2 Criminal Procedure Code, the civil party claiming damages is obligated to pay RON 200 as legal fees in connection with the appeal. Ruling is final. 31 3104/85/2014 - Sibiu County Court of Law Public procurement related litigation Romgaz plaintiff S.C. ICPE Electrocond Tehnologies S.A., Energ Natural Power Limited, S.C. Instaservice S.R.L.: defendants 7 274.900,60 Romgaz requested the court to compel the defendants to the jointly pay the updated amount of RON 274,900.60 representing the prejudice caused to Romgaz consisting of the equivalent value of electricity generation not generated during December 16, 2013-January 14, 2014 and to the payment of court fees. Accounting expertise was performed. Deadline was set for the expert to reply to objections made in connection with the expertise. Postponement for filing an addendum to January 23, 2018 No. File No./ Court of Law Case Plaintiff Defendant Amount (RON) Description 32 4760/102/2013 - Mures County Court of Law Criminal court - corruption (Law 78/2000) Romgaz - Sucursala Medias: injured party Giurgea Teodor s.a.: defendant 33 2699/251/2014 - Ludus Court of Law Eviction Romgaz - SPEE Iernut: plaintiff 34 3843/121/2014 – Galati County Court of Law Insolvency procedure Romgaz - creditor SC Marele Alb Prodimpex SRL: defendant Electrocentrale Galati SA - debtor the expertise report. Deadline is established for examination purposes. Romgaz action is partially allowed. Right to file a recourse. Recourse will be filed within the time limits. In this case file, Romgaz – Sucursala Medias is injured party as it is creditor to SC Globe Trotters SRL, a company in insolvency. In fact, the prejudice to Romgaz – Sucursala Medias is due to an agreement between the defendants and the directors of SC Globe Trotters SRL for the creation of an unlawful assignment (by making use of fictional documents). Ruling: conviction without guilty plea. Right to appeal within 10 days from the communication. Appeal filed on April 22, 2018. The scope of file is the settlement of the eviction request initiated by the plaintiff due to the fact that the defendant has late rent payments. On May 7, 2015, the court allowed the request. The compulsory enforcement procedure was initiated. 162,281,861.83 The subject matter of the case file is the settlement of the request filed by the debtor SC Electrocentrale Galati SA, under Law no.85/2006 on insolvency procedure. On June 16, 2014, the Court allowed the application, decided to open the general insolvency procedure against the debtor. SNGN ROMGAZ SA the filed an application outstanding debt in amount of RON 162,281,861.83 (equivalent value of natural gas, penalties and interests). In relation to this amount to be the body of creditors, only RON included 139,056,681.91 was allowed by the liquidator of assets of SC Electrocentrale Galati SA. Romgaz, as creditor, challenged the preliminary table of receivables. (Currently, the challenges to the preliminary table are on trial) For subsequent procedure – trial date: to acknowledge for Romgaz in Next procedural deadline January 01, 2018 Compulsory enforcement January 14, 2019 35 2899/62/15 – Brasov County Court of Law insolvency Romgaz SC Condmag SA 83,225,512.28 Recovery of undue payment found by the Court of Accounts March 19, 2019 8 File No./ Court of Law 3843/121/2014/a1 Galati County Court of Law 509/1371/2015 Mures County Court of Law Case Plaintiff Defendant Amount (RON) Description insolvency Romgaz- creditor Elcen Galati-debtor 162,281,861.83 Challenge of the nominal table insolvency Romgaz- creditor Foraj Sonde Ernei- debtor 1,428.98 Trial date. Insolvency procedure is continued. No. 36 37 38 2496/102/2015* - Sibiu County Court of Law claims Romgaz - SA Suc. Tg. Mures - plaintiff Kovacs Ladislau - defendant Next procedural deadline January 21, 2019 January 16, 2019 Compulsory enforcement Compulsory enforcement April 19, 2019 September 12, 2019 318,881.96 Alba Iulia Court of Appeal allowed by Ruling 737/03.07.2018 the appeal filed by the plaintiff against civil ruling no. 1316/2017 issued by Sibiu County Court of Law ]n case file no. 2469/102/2015 which is partly altered. It partly allows the request filed by the plaintiff against the defendant and consequently it compels the defendant to pay RON 223,613.35 and VAT in amount of RON 53,667.58 representing patrimonial damages. The remainder of the ruling is maintained. It compels the plaintiff to RON 1,950 as court expenses in relation to the court of first trial. 62,972.85 The civil actions for claiming damages filed by Romgaz-SPEE Iernut against SC Romarcom SRL is partially allowed and consequently: - - - the defendant is obliged to pay the plaintiff RON 16,605.35 as damages; the defendant is obliged to pay the plaintiff RON 935 representing court fees. SC Romarcom filed for appeal. Appeal dismissed. Right to recourse. 22,424,030 Bucharest Court of Appeal partially allows Romgaz action. Ruling is challenged with appeal by both parties. The instance communicated to each party the request for recourse of the other party. Romgaz filed a statement of defence in connection with the recourse requests of the Parties and a reply to the statement of defence filed by ANAF. 986.52 Equivalent value of unpaid invoice. 39 1560/251/2015 Ludus Court of Law claims Romgaz SA – SPEE Iernut-plaintiff Romarcom SRL- defendant 40 41 8029/2/2015 Bucharest Court of Appeal Challenge of administrative document Romgaz ANAF Brasov 8237/107/2012 Alba County Court of Law Insolvency Romgaz - Sucursala Medias- creditor SC AgroValea Lunga SRL: debtor 9 No. 42 File No./ Court of Law 8057/320/2016 - Targu Mures Court of Law claims SC Ambient SA: plaintiff Romgaz - STTM Targu Mures: defendant Case Plaintiff Defendant Amount (RON) Description 130,496.59 The plaintiff requests the payment of RON 130,496.59 representing outstanding payment obligations under the Debt Assumption Contract no. 121/September 21, 2012 concluded with Romgaz-STTM, to which the legal interest is added. Ruling no. 847/2017 dismisses the request. The defendant requests the supplementation of ruling with the order to compel the plaintiff to payment of court expenses already paid by the defendant. Plaintiff filed an appeal. Ruling 137/05.03.2018 allows the dismissal for lack of material competence declining the settlement of case to Mures County Court of Law. Civil ruling no. 801/June 21, 2018, Mures County Court of Law finds a negative competence conflict, orders the suspension of appeal and sends the case file to Tg. Mures Administrative Court for settlement of competency. Sets the settlement competency of the appeal filed by the plaintiff represented by the special administrator Ioan Ciolan and official receiver SIBINSOLV IPURL against civil ruling no. 847/February 17, 2017 issued by Tg. Mures Court of Law in case file no. 8057/320/2016 in favour of the specialized Tg. Mures Court of Law. 130,496.59 Ruling 666/October 19, 2018 allows the appeal filed by the appellant A.S.A. against civil ruling no. 847/February 17, 2017 given by the Tg. Mures Court of Law in case file no. 8057/320/2016. It completely changes the appealed ruling and consequently obliges the defendant to pay to the plaintiff RON 130,496.59 as damages representing the due payment instalments of the payment obligation. It compels the defendant to pay to the plaintiff the legal interest relating to the main payment obligation from the due date of each payment instalment until the full repayment of each instalment. The ruling is final. 269 The appellant filed a civil action requesting the annulment of the sanctioning decision no. 296/December 12, 2017 whereby he was sanctioned with a 5% reduction of the base salary for 2 months due to several disciplinary misconducts specified in the decision. Ruling no. 112/23.10.2018 – partially allows the introductory request of the court. Partially annuls Decision no. 296 of December 12, 2017 relating to the disciplinary sanction of the act contained in summons C i.e. repeated disregard of the parking rules of STTM Targu-Mures. Dismisses the remainder of the action upholding the attacked ruling as legal and based on substantial evidence. It compels the plaintiff to the Next procedural deadline Final ruling (disinvestm ent 459/July 16, 2018 Final ruling not communicat ed Appeal filed by the appellant, term not established 43 8057/320/2016* - Targu Mures County Specialized Court of Law Claims - appeal SCATL CONSTRUCTIONS SRL and SC Ambient SA: plaintiff Romgaz - STTM Targu Mures: defendant and SC Ambient S.A. by Special Administrator, impleader 44 218/102/2018 Tg Mures County Court of Law Labour litigation Romgaz – STTM Tg. Mures – defendant Dascal Alexandru - plaintiff 10 Next procedural deadline Ruling not communicat ed Ruling not communicat ed No. File No./ Court of Law Case Plaintiff Defendant Amount (RON) Description 45 222/102/2018 Tg Mures County Court of Law Labour litigation Romgaz – STTM Tg. Mures – defendant Dascal Alexandru - plaintiff 46 4095/102/2017 Labour litigation Romgaz – STTM Tg. Mures – defendant Plaintiff – Moldovan Iuliu payment of RON 1,000 representing court and lawyer’s fees. Right to file an appeal within 10 days. 775 The civil case filed by the defendant requests the annulment of the disciplinary sanction no. 6/January 11, 2018 whereby the employees was sanctioned with a 5% reduction of the base salary for 3 months due to disciplinary misconduct consisting of exhibiting violent behaviour during work hours. Ruling no. 1270/08.11.2018 – rejects the civil action filed by the defendant against the plaintiff. Right to file an appeal within 10 days. in connection with 4,178 The civil case filed by Romgaz STTM as creditor requests the court to compel a former employee, Mr. Moldovan Iuliu to pay RON 4,178 representing undue wage-related rights the additional vacation days, payment obligations in connection with the employee’s training at the employer’s initiative and equivalent value of unreturned safety equipment owed by the debtor due to the termination of the individual labour agreement according to Labour Code article 248, par. 1, letter e – termination of employment due on disciplinary grounds – absence without leave. Ruling no. 1060/October 09, 2018 – partially allows the request filed by the plaintiff against the defendant. It compels the defendant to pay to the plaintiff RON 2,665.71 out of which RON 1,945 representing undue wage-related rights, RON 571.98 representing the equivalent value of safety equipment and RON 148.73 representing fees. Dismisses the count of compelling the plaintiff to the payment of court fees. Right to file an appeal within 10 days from the communication date. training 47 1278/102/2016 Labour litigation Romgaz- STTM Tg. Mures - defendant Cotoi Ioan-plaintiff 63.811,09 Action in patrimonial liability of the employee for the damage brought to the company found in relation to the company’s 2015 inventory of the patrimony administered by the plaintiff. Civil Ruling no. 580/July 03, 2017 – rejects the civil action filed by the plaintiff Romgaz STTM Tg. Mures (against the defendant C.I.S.). Allows the counterclaim filed by the defendant – counter plaintiff C.I.S. against the plaintiff – counter defendant Romgaz STTM Tg. Mures. Compels the defendant – counter plaintiff to make a disposition of release in favour of the defendant – counter plaintiff of the entire amount withheld as guarantee and of the relating interest amounts accumulated in the bank account no. RO29CRDZ002A001810589001 opened with Patria Bank in favour of S.N.G.N. „Romgaz” S.A., the 11 No. File No./ Court of Law Case Plaintiff Defendant Amount (RON) Description Next procedural deadline titleholder of the collateral deposit being C.I.S. Compels the plaintiff – counter defendant to return to the defendant – counter plaintiff RON 29,902. Cancels the payment obligations prepared on December 17, 2015. Compels the plaintiff to pay to the defendant RON 5,000 as court fees. Right to file an appeal within 10 days from the communication date. Request for appeal is to be filed with Mures County Court of Law. Appeal filed by STTM on March 28, 2018. Civil Ruling no. 222/A/June 14, 2018 – allows the plaintiff’s appeal, partially changes the ruling to the extent that compels the plaintiff – counter defendant to return to the defendant-counter plaintiff RON 28,572. Maintain the remainder of the appealed ruling. Compels the appellant to pay to the appellee Cotoi Ioan Stefan RON 1,000 as appeal-related court fees. 48 3183/306/2016 Sibiu Cout of law Claims Romgaz - SPEE Iernut : plaintiff SC Laromet Metal Star-D SRL: defendant 4,000.03 Allows the request. Civil ruling no. 433/2017. Enforcement file no. 783/2017 – SCPEJ Dumitru Marius-Vasile and Stoian Codruta. Unrecovered amount: RON 4,000.03. Compulsory enforcement 49 847/1285/2014 - Cluj County Specialized Court of Law Insolvency proceedings Romgaz - SPEE Iernut - creditor SC Marele Alb Prodimpex SRL - debtor 50 1335/251/2016 – Ludus Court of Law claims Romgaz - SPEE Iernut: plaintiff PFA Cormos Daniela: defendant 51 698/251/2016 – Ludus Court of Law Claims, separated from File Case no. 1855/251/2013 PFA Cormos Daniela: plaintiff Romgaz - SPEE Iernut: defendant; SC Comindal Impex SRL: defendant 12 64,742 Civil Ruling no. 101/2015, the Specialized Court of Law ruled on initiating the general insolvency proceeding against the debtor SC Marele Alb Prodimpex SRL. The receivables are completely enlisted Continuation of insolvency procedure insolvency assets. for March 14, 2018 4,184.00 Allows the request. Civil Ruling no. 1012/2016. With Appeal. Dismisses the appeal. Final ruling. Civil ruling 550/2017. Enforcement file no. 1083/2017 – BEJ Vlas Maria Cristina. Outstanding amount to be recovered: RON 1,350. Compulsory enforcement 150,000 Damages. Civil Ruling no. 1122/2017 - Dismisses the plaintiff’s request. Right to file an appeal. Term not established File No./ Court of Law 2899/62/2015 of Brasov County Court of Law Case Plaintiff Defendant Amount (RON) Description Insolvency proceedings Romgaz – Sucursala Medias – Creditor S.A. Condmag S.A. - debtor RON 9,403.24 + 200 court fees.- Request to initiate insolvency proceedings. Delays the case file for the continuation of proceedings and settlement of appeal against the ruling to initiate the insolvency proceedings. Next procedural deadline March 19, 2019 319/1371/2016 – Mures Commercial Court of Law claims LEX Guard Security SRL Reghin: plaintiff Romgaz - Sucursala Targu Mures: defendant 126,483.91 Claims arising in connection with the abusive termination of Security Services Contract. Action dismissed. Court issues ruling no. 94/2016. Appeal may be filed within 30 days. Ruling is not communicated. Currently not established No. 52 53 54 627/102/2016 – Mures County Court of Law corruption Romgaz: injured party and plaintiff claiming damages 55 681/57/2015 Action for annulment Romgaz: plaintiff Avram Pantelimon, Olaru Ioan Tiberiu, Mincan Emil Valentin, Ştefan Ioan: defendants Consiliul National pentru Combaterea Discriminarii si Sindicatul "Extractie Gaze si Servicii" 146,637.06 Criminal action against corruption. The scope of is the action to partially allow Decision no. 371/September 2, 2015 issued by Colegiul Director al CNCD, the use of the wording “signing syndicate” throughout Romgaz Collective Labor Contract 2015-2016 does not constitute a discrimination based on syndicate membership and on access to its facilities; consequently the deletion from Romgaz Collective Labor Contract of the above-indicated wording is not required, the issuance of a fine to Romgaz is not grounded and the publishing of the resolution in a nation-wide paper is not required. Alba Court of Appeal allowed the action. CNCD filed recourse. ICCJ did not set a trial date. January 18, 2019 January 17, 2019 Stay of proceedings 56 1284/102/2016 Mures County Court of Law Labour related litigation Sturza Ioan: plaintiff Romgaz 158,272 Discrimination. Stay of proceedings until the final settlement of file 249/57/2016. 57 249/57/2016 Alba Iulia Court of Appeal Labour related litigation Romgaz: plaintiff CNCD and Sturza Ioan: defendants Alba-Iulia Court of Appeal: annulment of Decision no. 603/December 09, 2015.Recourse will be filed with the Higher Court of Cassation and Justice. Currently not established 13 No. File No./ Court of Law 58 1300/102/2016 Labour related litigation Tegla Nicodim Ciprian: plaintiff Romgaz: defendant Case Plaintiff Defendant Amount (RON) Description 130,000 Mures County Court of Law: scope of case file is to compel Romgaz to: - review salary-related rights starting with 2013 until now and onwards; - pay salary-related monetary difference starting with June 2013 until the full payment thereof amounting RON 130,000 at the record date of the action, for 36 months; - pay legal interest on salary-related monetary differences starting with June 2013 until the full payment thereof. Accounting expertize shall be performed. Term established for filing the expertize report. Expertise report was filed. Objections were filed in connection with the expertise report. Term was established for providing answers to the objections. Insolvency – table of receivables was filed. Challenge was filed. Allows the challenge of debtor DistrigazSud Retele. Appeal may be filed within 7 days from its publication in the Official Journal of Romania. Final table was challenges on April 05, 2018 New case file was separated in connection with settlement of challenge: case file no. 29466/2/2018 Trial terminated – plaintiff deceased. Settlement in brief: case reinstated and establishes the date of August 21, 2017 to assess the stay of proceedings until the inclusion of the deceased’s legal successors according to 412, art. 1 Civil Procedure Code. On June 07, 2018 the court found the request to be obsolete. 569,945,968.48 Next procedural deadline January 22. 2019 February 21, 2018 Obsolete request Stay of proceedings 59 35304/3/2016 - Bucharest Court of Law Insolvency Romgaz: creditor SC Electrocentrale Bucuresti SA: debitor 60 3129/85/2017 - Sibiu County Court of Law Challenge of termination of employment notice/decision 61 207/102/2017 Mures County Court of Law Monies due Iakab Zoltan - plaintiff ROMGAZ Suc.Medias – defendant 413 employees of SPEE Iernut – plaintiff Romgaz - defendant Revision of remuneration rights from February 1, 2014 onwards. Stay of proceedings until de final settlement of case file 249/57/2016 62 4483/320/2017 Mures County Court of Law Impleader Romgaz – plaintiff FGA (Policyholders Guarantee Fund) - defendant Impleader request separated from case file 11776/320/2016. Rejects the summons filed by the plaintiff against the defendant. Romgaz filed an appeal. Ruling 408/A/2018 Mures County Commercial Court of Law declined its competence in favour of Mures County Court of Law Civil Section. On October 16, 2018 the case file was sent to Mures Court of Appeal for the settlement of the negative competence conflict between Mures County Court of Law - Civil Section and its Specialized Court. 14 No. 63 File No./ Court of Law Case Plaintiff Defendant Amount (RON) Description 2158/257/2015 Medias Court of Law Validation of garnishment Drilling Equipment SRL – Creditor Dafora SA – Debtor 163,164 Romgaz – garnishee 64 2157/257/2015 Medias Court of Law Validation of garnishment Drilling Equipment SRL – Creditor Dafora SA – Debtor 163,164 Romgaz – garnishee 65 2154/257/2015 Medias Court of Law Validation of garnishment Drilling Equipment SRL – Creditor Dafora SA – Debtor 163,164 Romgaz – garnishee 66 2156/257/2015 Medias Court of Law Validation of garnishment Drilling Equipment SRL – Creditor Dafora SA – Debtor 131,305.83 Romgaz – garnishee 67 2153/257/2015 Medias Court of Law Validation of garnishment Drilling Equipment SRL – Creditor Dafora SA – Debtor 163,164 Romgaz – garnishee 68 2152/257/2015 Medias Court of Law Validation of garnishment Drilling Equipment SRL – Creditor Dafora SA – Debtor 131,305.83 Romgaz – garnishee 15 Next procedural deadline stay of proceedings resulting from the debtor’s insolvency stay of proceedings resulting from the debtor’s insolvency stay of proceedings resulting from the debtor’s insolvency stay of proceedings resulting from the debtor’s insolvency stay of proceedings resulting from the debtor’s insolvency stay of proceedings resulting from the debtor’s insolvency No. 69 File No./ Court of Law Case Plaintiff Defendant Amount (RON) Description 2018/257/2015 Medias Court of Law Validation of garnishment Drilling Equipment SRL – Creditor Dafora SA – Debtor 5,012.08 Romgaz – garnishee 70 21555/257/2015 Medias Court of Law Validation of garnishment Drilling Equipment SRL – Creditor Dafora SA – Debtor 163.164 Romgaz – garnishee 71 2097/257/2015 Medias Court of Law Validation of garnishment SC Macro-Tur SRL – Creditor Dafora SA – Debtor 8,437.98 Romgaz – garnishee 72 2095/257/2015 Medias Court of Law Validation of garnishment SC Macro-Tur SRL – Creditor Dafora SA – Debtor 40,000 Romgaz – garnishee 73 74 461/1371/2016 – Mures Commercial Court of Law 4270/102/2017 Mures County Court of Law Insolvency Romgaz: creditor SC InstaService SRL: debtor 275,535.60 Insolvency proceeding. Labour-related litigation Negrea Alexandru Stelian - plaintiff Romgaz STTM - defendant 30,000 The plaintiff filed a civil action to compel Romgaz STTM to the payment of RON 30,000 as civil damages for the moral prejudice and to relating legal interest from the date of filing the action until the actual payment thereof. Ruling: 1504/18.12, 2018 – Dismisses due to lack of grounds the action filed by the plaintiff against the defendant. Right to file an appeal within 10 days from the communication 16 Next procedural deadline stay of proceedings resulting from the debtor’s insolvency stay of proceedings resulting from the debtor’s insolvency stay of proceedings resulting from the debtor’s insolvency stay of proceedings resulting from the debtor’s insolvency March 27, 2019 Ruling not communicat ed Next procedural deadline January 31, 2019 January 23, 2019 Preliminary Criminal Ruling no. 119/28.11.2 018 for dismissal of challenges Case Plaintiff Defendant Amount (RON) Description insolvency Romgaz- Suc. Tg Mures-creditor SC Best InstalGas&Water SRL - debtor 317,66 The initial receivables amounted RON 1,214,940.44. Subsequently, the debtor performed also the outstanding works in the contract and the late payment penalties were recovered from the contract performance guarantee. The remaining difference is RON 317.66. Claims-damages Durla Sabina - plaintiff Romgaz-Suc. Tg. Mures - defendant Not specified Compensation for loss of land usage during 2015-2016 to be set by judicial expertise. No expertise reports were filed. No. 75 File No./ Court of Law 696/1371/2016 – Tg. Mures Commercial Court of Law 76 5978/317/2016 Tg. Carbunesti Court of Law 77 Criminal Case file 3212/257/2017 – Medias Court of Law Medias Court of Law Prosecutor’s Office – Romgaz SIRCOSS – injured party Embezzlement – continuing form and accessory to embezzlement – continuing form (Art. 295 par. 1 Criminal Code with the application of Art. 35 par. 1 Criminal Code art. 48 par. 1 Criminal Code in relation to art. 295 par. 1 Criminal Code Defendants (14) Dan Ioan, Podar Nicolae, Popa Nicolae, Serban Vasile Florin, Moldovan Sorin, Manciu Ioan, Dragomir Vicentiu Catalin, Chis Ciprian , Gyorke Aladar, Morariu Ovidiu Pavel, Biro Mihai, Nicola Lucian, Marinescu Alexandru Mircea, Moldovan Claudiu Liviu Romgaz-SIRCOSS – respondent The criminal prosecution represented the scope of case file no. 1278/P/2015 filed with Medias Court of Law Prosecutor’s Office – embezzlement. The case was pending before the preliminary chamber. On October 27, 2017 the commencement of trial was ordered. The defendants challenged the trial commencement order and the case was sent to Sibiu County Court of Law for the settlement of challenges. On June 15, 2018 the case file was postponed to September 12, 2018 at 11:00 o’clock for the communication of indictment. A postponement for the communication of indictment was granted. the defendants against filed by Dismisses Preliminary Criminal Ruling preliminary the of 392/CC/27.10.2017. The order for the commencement of trial is kept. the chamber the challenges 78 2827/85/2018 Sibiu County Court of Law Labour-related conflict Kiss Mihaly Claimant in review proceedings 79 2826/85/2018 Sibiu County Court of Law Labour-related conflict Gartner Wilhem Claimant in review proceedings Romgaz-SIRCOSS – respondent 17 The claimant filed an action against the sanction decision. The case is pending before Sibiu County Court of Law, term set for February 7, 2019. February 7, 2019 The claimant filed an action against the sanction decision. The case is pending before Sibiu County Court of Law, term set for February 7, 2019. February 7, 2019 Equivalent value of 5% of the monthly wage over a 3 months term Equivalent value of 5% of the monthly wage over a 3 months term No. 80 File No./ Court of Law 1319/85/2018 Sibiu County Court of Law Patrimonial liability Romgaz-SIRCOSS – plaintiff Bordi Adrian - defendant Case Plaintiff Defendant Amount (RON) Description 81 1318/85/2018 Sibiu County Court of Law Patrimonial liability Romgaz-SIRCOSS – plaintiff Lorincz Levente - defendant 82 25551/28/2017 Ploiesti Court of Law Complaint of violation Romgaz SIRCOSS – claimant in review proceeding Serviciul Public de Finante Locale - respondent According to the summons, the plaintiff requests the court to compel the defendant to the payment of RON 2,869 representing the damages caused to the plaintiff, and of the relating interest until the actual payment date, and of the court fees. Summons dismissed. Appeal was filed against Sibiu County Court Ruling. Case is pending before Alba-Iulia Court of Appeal. 10,170 Claims: recovery of prejudice caused by an embezzlement action carried out the defendant, for which he was trialled and relation to which he concluded and admission of guilt agreement. Summons dismissed. Appeal was filed which is pending before Alba-Iulia Court of Appeal. report finding 1,116 As a result of the control of the Public Finance Office in Ploiesti, it drafted a in connection with offence no. 70364/16.11.2017 whereby SIRCOSS was fined with RON 1,116 for irregularities in connection with the fee relating to advertising posting. Further to the Fiscal Inspection Report no. 127967/16.11.2017 is was found that Public Finance Office in Ploiesti must pay to SIRCOSS RON 49,379. On June 29, 2018 the ruling was postponed to July 6, 2018. Subsequent postponement. First instance court dismissed. Appeal filed. Appeal is pending before Prahova County Court of Law. 83 928/85/2016 Sibiu County Court of Law Labor related litigation Challenge of dismissal decision Dan Ioan - claimant in review proceeding Romgaz – SIRCOSS - Respondent On the hearing of September 05, 2016, the Court ordered the stay of proceedings until the final settlement of the file, the ruling of which shall be decisive in the settlement of this case. 84 927/85/2016 Sibiu County Court of Law Labor related litigation Challenge of dismissal decision Podar Nicolae - claimant in review proceeding Romgaz – SIRCOSS - Respondent On the hearing of October 13, 2016, the Court ordered the stay of proceedings until the final settlement of the file, the ruling of which shall be decisive in the settlement of this case. 18 Next procedural deadline February 19, 2019 Term not established January 16, 2019 Stay of proceedings until the settlement of the criminal case file in relation to the claimant Stay of proceedings until the settlement of the criminal No. File No./ Court of Law Case Plaintiff Defendant Amount (RON) Description 85 944/85/2016 County Court of Sibiu Labor related litigation Challenge of dismissal decision Lorincz Levente - claimant in review proceeding Romgaz – SIRCOSS - Respondent 86 3421/85/2017 Sibiu County Court of Law Labor related litigation Recovery of undue amounts ROMGAZ- SIRCOSS – plaintiff Deac Horatiu Teodor (former employee) - defendant 87 10073/63/2015* Dolj County Court of Law Claims Paunescu Dan S.A. - plaintiff Transgaz, Romgaz Ploiesti - defendant 19 On the hearing of September 6, 2016, the Court ordered the stay of proceedings until the final settlement of the file, the ruling of which shall be decisive in the settlement of this case. On March 29, 2018 the case was reinstated, the court invoking by office the exception of obsolesce. On April 17, 2018 allowed the exception. Finds that the challenge filed by the claimant is obsolete. Right to file an appeal within 5 days from the communication of the ruling. Ruling no. 266/2018 Recovery of undue amount. Status of litigation: filed in June 06, 2017. Settled on November 16, 2017 by allowing the action and compelling Mr. Deac Horatiu to pay the amount of 2,746 RON. Ruling under appeal. Ruling is final due to lack of appeal. Compulsory enforcement of debtor. Compulsory enforcement proceedings were initiated. The request filed by BJ Demeter Tiberiu Claudiu as petitioner upon request of SIRCOSS was allowed. Value of receivables: RON 2,746 representing undue amounts paid as salary entitlements. The approval also comprises the amounts included in the enforcement documents issued by the Judicial Executor. Authorizes the creditor to enforce the obligations provided in the enforcement document in compliance with the law. Appeal not allowed. Evaluated in the advisory chamber and ruled in public meeting on April 24, 2018. Ruling 2572/2018. Enforcement in progress. EUR60,000 Compensation payment the loss of undercrossing by the ND 300 Clapeta-SDE pipeline. The plaintiff’s action was dismissed. The plaintiff filed for appeal. land usage due for to Next procedural deadline case file in relation to the claimant Finalized Compulsory Enforcemen t February 21, 2019 No. 88 File No./ Court of Law 31572/215/2015 Craiova Court of Law Case Plaintiff Defendant Amount (RON) Description Claims Dica Viorel - plaintiff Romgaz Ploiesti - defendant 16,500 Compensation payment for loss of easement right due to the Ghercesti Cluster 7. A topographic and agricultural expertise was ordered. Action dismissed. Compels the plaintiff to the payment of court fees in amount of RON 11,995. Ruling 2744/14.03.2018. The plaintiff filed for appeal on June 28, 2018. On January 9, 2019 one of the members of the panel accepted retraction because he/she ruled in another case file between Romgaz and Dica Viorel. The case will be settled by another panel. 673 Labor related litigation to recover the amount of 673 RON; equivalent value of undue days of leave. Action allowed Next procedural deadline Term not established Enforcement request filed 89 900/105/2016 Prahova Claims Romgaz Ploiesti - plaintiff Filip Gheorghe - defendant 90 91 11305/215/2017- Craiova Court of Law Establishment of easement right+claims Irimescu Simona- plaintiff Romgaz Suc. Ploiesti- defendant 6,000 The plaintiff requests a right of access to the land where well 211 Ghercesti is located. She also claims that she cannot construct on this privately-owned land because of existing pipelines. January 21, 2019 Insolvency 53/1285/2017- Cluj County Specialized Court of Law Romgaz – Suc Ploiesti - creditor SC Energon Power&Gas SRL - debtor 318,135.78 Request for admission of RON 318,135.78 debt. The request filed by the interim official receiver Societate Redresare Lichidare SPRL was allowed and the simplified insolvency of SCE.P. &G. SRL as well as its winding up was ordered. January 15, 2019 92 28104/281/2016- Ploiesti Court of Law Specific performance, damages Fundatia Semper Fidelis Domus Bucuresti - plaintiff Romgaz – Suc. Ploiesti - defendant 2,000/annum/pa st 3 years Request to deviate the gathering pipeline PN 150 Butimanu-Bilciuresti and to demolish constructions erected without construction permit. February 01, 2019 93 3246/317/2017 Tg. Cărbunești Court of Law Complaint of violation SNGN ROMGAZ SA – Suc. Tg. Mures – petitioner I.T.M. Gorj - respondent 3, 500 Complaint of violation against the Finding Report. Dismisses the complaint. Ruling fought by appeal. On September 11, 2018 the stay of proceedings was ordered until the final settlement of case file 228/95/2018. January 15, 2019 20 No. 94 File No./ Court of Law 4199/85/2017 Sibiu County Court of Law Case Claims Plaintiff Defendant Amount (RON) Description SC Develtor SRL - plaintiff SNGN Romgaz SA – defendant 2,920,371.34 plus VAT Next procedural deadline Finalized Not established SC Develtor SRL requests the court to compel SNGN Romgaz to pay 2,920,371.34 plus VAT representing the equivalent value of additional works carried out by the plaintiff during phases II, III and IV and of equipment used in addition when performing works at well Radeni 1 according to Works Contract no. 11197/29.02.2016. Expertise was carried out. Term is established for expertise assessment and supplementation. The plaintiff’s request is dismissed. Right to file an appeal within 10 day from the communication. Final. Court fees were recovered. The plaintiff considered that he was not categorized in the occupational category proper for the activity he made during the time he was an employee of the company, namely category 1. The court dismisses his request and compelled the defendant to issue a certification of the fact that the plaintiff was categorized in the II-nd occupational category while performing his labour contract with the company. Appeal was filed on October 5, 2018 and the court will set a term. Sponsorship contract no. 34667/2015 was terminated and the refund of RON 10,000 was requested. Ruling 702/2018 dismissed Romgaz request. Appeal was filed. On August 22, 2018 the request for appeal was dismissed. Right to file a recourse within 30 days from the communication. 95 1985/105/2018 Prahova County Court of Law Establishment of occupational category Paduraru Ioan - plaintiff SNGN Romgaz SA - Ploiesti -defendant 96 2279/327/2017 Tulcea Court of Law claims SNGN Romgaz SA - plaintiff Primaria Comunei Crisan- defendant 10,000 97 98 4720/2/2017 Bucuresti Court of Appeal Cancellation of decision Romgaz – claimant in review proceedings FGA - respondent Romgaz filed a challenge against the FGC Decision no. 6126/2017 whereby it rejected the inclusion of 1,891 as insurance receivables. Ruling 721/2018 the court of first instance dismissed Romgaz challenge. Romgaz to file recourse. 13.10.2020 7034/303/2014 Bucharest County Court of Law Garnishment validation - appeal Romgaz creditor SC Interagro SA – debtor SC Energy Cogeneration; Bio Fuel Energy, Fish&Fish Prodcom Inter-Sport Assets, Cotidianul Curentul, Inter Tourism Management, Power 21 100,615,007.42 according to Civil ruling no.3279/2011 – enforceable According to Civil Ruling1492/2016, the courts of first instance allowed the garnishment validation request filed by Romgaz against the garnishee. Interagro and the garnishees filed an appeal. The Minute dated November 2, 2016 ordered the stay of appeals on grounds of non-compliance with all obligations established for the respondents. Civil Ruling no. 3024/June 13, 2018, Bucharest County Court of Law allowed the exception of obsolescence in connection with appeal requests and found that the appeal requests are obsolete. Also, it compelled the appellants to pay Romgaz RON 10,375.68 as appeal related court fees. Interagro filed recourse. Romgaz formulated and January 11, 2019 No. File No./ Court of Law Case Plaintiff Defendant Amount (RON) Description 99 6838/303/2014 Bucharest County Court of Law Garnishment validation - appeal Romgaz creditor Plant Fagaras, Scorpions Construct, Giurgiu BiomassHet&Power, Interagro Exploration - garnishee SC Interagro SA – debtor SC TM Power SA, Asirom Leasing IFN, Cotidianul Curentul, IFN INT, Intercereal – garnishee 100 34079/303/2015 Sector 6 Bucharest Court of Law Challenge on enforcement Interagro - petitioner Romgaz, Agricolferm SRL, BEJ Cristian Milos – respondent 101 36095/3/2015 Bucharest County Court of Law insolvency Interagro - debtor Romgaz – creditor Creditors included in the preliminary table of receivables 102 8453/2/2016 Bucharest Court of Appeal Challenge of administrative document Romgaz - claimant ANAF Brasov - respondent 22 filed a statement of defence in connection with the request for appeal. 100,615,007.42 according to Civil ruling no.3279/2011 – enforceable 100,615,007.42 according to Civil ruling no.3279/2011 – enforceable According to Civil Ruling 8486/2015, the court of first instance allowed the garnishment validation request filed by Romgaz against the garnishee. Interagro and the garnishees filed an appeal. The Minutes dated September 02, 2016 ordered the stay of proceedings due to the fact that against the debtor insolvency proceedings were initiated according to case file 36095/3/2015. The stay of proceedings is valid at present. Challenge on enforcement against the tendering minutes relating to the construction located in Bucharest, sector 6, Apusului Str., no.50 belonging to the debtor included in the enforcement file no. 28/2014 of BEJ Cristian Milos. The request is found obsolete. Right to file a recourse. SC Interagro S.A. filed recourse on December 4, 2017. Recourse is the scope of the case file no. 3059/1/2018 284,208,986.85 The receivable to be included in the body of creditors is of RON 284,208,986.85 and is included in the table of receivables. The insolvency procedure is in observation phase. At the end of the fist Creditors’ Assembly held on May 16, 2016, the Creditors’ Committee was appointed and is formed by Pireus Bank, Romgaz, Banca Transilvania, Intercereal and EON Energie. CITR Ilfov subsidiary was confirmed as Official Receiver. Following the settlement of challenges to the preliminary table, the final table is to be drafted and to make a decision regarding the debtor’s reorganization or performance of bankruptcy procedures. 2,980,868 The Court of Appeal dismissed the summons on inadmissibility grounds because of the unlawful statute of limitations to establish fiscal obligations and because of lack of grounds for the remaining part. (Ruling 1836/May 19, 2017). Against this decision, a recourse was filed on May 25, 2017. The memorandum containing grounds for recourse was sent on November 13, 2017. Statements of defence were received. Romgaz provided answers. Next procedural deadline Stay of proceedings March 19, 2019 February 18, 2019 November 27, 2019 Next procedural deadline Stay of proceedings Finalized January 8, 2018 No. 103 File No./ Court of Law 4271/85/2017 Bucharest Court of Appeal Case Plaintiff Defendant Amount (RON) Description Tort liability proceedings Romgaz plaintiff Piteiu Maria Iuliana, Piteiu Vladimir – defendants 282,630,330.49 (rough estimation) Tort liability proceedings initiated against the legal successors for maintaining precautionary measures established the criminal prosecution file no. 146/D/P/2010 in relation to the property of the deceased Marcel Adrian Piteiu in 104 5480/85./1/2017 Sibiu County Court of Law counterclaim Piteiu Maria Iuliana, Piteiu Vladimir – petitioners Romgaz – civil party 282,630,330.49 (rough estimation) 105 1692/1/2017/a1 High Court of Cassation and Justice Directions hearings Romgaz-civil party 282,630,330.49 (rough estimation) NICULAE IOAN VIDEANU ADRIEAN - MIREA MARIN - ALESANDRU DAN- VICTOR - PALASCA VIOREL - APAN IOANA - KRAMER ALPAR - TOTH FRANCISC - STANCU LUCIAN ADRIAN - VEZA MARIUS LEONTE - IONASCU LUCIA - SC INTERAGRO SA - defendants 23 Counterclaim to lift precautionary measures (distrain upon property). According to Minutes 12/May 19, 2018, Sibiu County Court of Law dismissed the challenge based on request inadmissibility invoked by Romgaz and DIICOT, the challenge on grounds of late submission of complaint invoked by DIICOT and the challenge based on lack of interest to enforce distrain upon property raised by the petitioner Piteiu Maria Iuliana. The court dismisses the request to lift precautionary measures compelling the petitioner to pay to Romgaz RON 2,500 representing court fees. Against the minutes, the petitioner filed appeal and Romgaz incident appeal. Appeal dismissed by civil ruling 672/June 19, 2018. - preliminary chamber: finds irregularities in connection with indictment no. 146/D/P/2010 of May 31, 2017 issued by the Prosecutor’s Office of the High Court for Cassation and Justice – Direction for the Investigation of Criminal Offences relating to Organized Crime and Terrorism, Central Structure, Fighting Organized Crime Section. Sends the Minutes to the Prosecutor’s Office of the High Court for Cassation and Justice – Direction for the Investigation of Criminal Offences relating to Organized Crime and Terrorism, Central Structure, Fighting Organized Crime Section so that the prosecutor can remedy within 5 days from the date of communication the irregularities, according to article 345, par. 3 Criminal Procedure Code and to communicate whether it maintains the application for a summons of the defendants or whether it requests the referral of case for further investigation. Right to challenge once the ruling is communicated according to article 346 Criminal Procedure Code. Ruling on January 22, 2018. By means of the divestiture order of June 07, 2018, the preliminary chamber judge referred the case back to DIICOT. Challenge was filed on June 11, 2018. On December 3, 2018 Romgaz filed a motion of challenge. The grounds for challenge were stated. They are to be included in the case file either on the following term for trial (January 8, 2019) or before (January 7, 2019). No. 106 File No./ Court of Law 3098/2518/2017 Ludus Court of Law Complaint of violation Romgaz-SPEE ANRE - defendant Iernut - petitioner Case Plaintiff Defendant Amount (RON) Description 107 32542/3/2017 Bucharest County Court of Law claims Romgaz - plaintiff SC C-Gaz &Energy Distributie SRL Bucuresti –defendant 4,000 (half of minimum range of fine value) Complaint of violation against Record of Findings 84958/2017, fine 50 000 art. 93 par (2) point 2, letter a) of Law 123/2012, for “non- transmittal of data as requested namely correctly and completely” On March 22, 2018, the complaint was allowed. The Record of Findings was cancelled. Civil ruling no. 132/March 22, 2018. Appeal filed by ANRE – record date June 4, 2018. 1,109,398.89 Romgaz requests that the defendant is compelled to: - - in taken, as outlined Payment of RON 1,089,351.21 as unpaid price for gas contracted and not invoices 40401160/09.05.2017, no. 40401161/10.04.2017 Payment of RON 20,047.68 as legal interest for the debit calculated until July 31, 2017 and further on the payment of legal interest until the full restitution of the main debit. Payment of legal expenses. Term was granted for submission of evidence. Allows Romgaz request. Dismisses the counterclaim filed by the defendant. Ruling 2003/June 1, 2018. Appeal may be filed within 30 days from the communication of the ruling. - 108 30568/325/2017 Timisoara Court of Law Claims Romgaz-SIRCOSS plaintiff SC ETA AUTOMATIZARI INDUSTRIALE SRL defendant 109 13745/63/2017 Dolj County Court of Law Reimbursement of undue payment Romgaz - plaintiff SC Foraj Sonde SA Craiova - defendant 74,524.7 To compel the defendant to the payment of RON 74,524.7 plus late payment penalties, representing equivalent value of non-compliant GPS. Timisoara Court of Law declined its competence in favour of Timis County Court of Law. Ruling 2980/March 15, 2018. Timis County Court of Law dismisses the request. Partly allows the counterclaim. Compels the plaintiff-counter defendant to the payment of invoices issued during December 14, 2016 and May 31, 2017 and of late payment penalties in relation thereof. The remainder of the counterclaim is dismissed. The plaintiff is compelled to pay RON 4,000 court fees. Right to file an appeal within 10 days from the ruling communication date. Request to be filed with Timis County Court of Law. Ruled on June 06, 2018. Ruling 970/2018. Action filed for the reimbursement of undue payments Declines competency in favour of Sibiu Court of Law. No right to recourse/appeal. Ruling 35/2018 Term established for judicial expertise in accounting. 10,972 (judicial stamp duty) 24 Next procedural deadline January 28, 2018 Ruling not communicat ed Not established February 11, 2019 No. 110 File No./ Court of Law Case Plaintiff Defendant Amount (RON) Description 5362/317/2017 Tg Carbunesti Court of Law Action for recovery of possession of real property Jianu Dumitru - plaintiff Romgaz Suc. Tg. Mures - defendant Action for recovery of possession of a 410 sq.m piece of land, building of industrial construction, payment of 5,000 equivalent value of production not made during 2015-2017+court fees. Next procedural deadline January 30, 2019 5,000 equivalent value of production not made during 2015- 2017+court fees. 2,000 Settled by appeal. Ruling 1766/November 7, 2018 allowed the respondent’s appeal. Changes the appealed ruling. Partly allows the violation of complaint. Replaces the fine with warning. Finalised 3,157,979 Criminal action for corruption charges - - for - annulment of selection process the position Head of Development Office organised by the defendant on October 19, 2017; Annulment of Decision no. 429/30.10.2017 for the establishment of the challenge review committee and of the challenge rejection decision according to Letter 43611/14.12.2017; - compelling the defendant to organise a new selection process in compliance with the legislation in force and to pay court fees. Labour-litigation settled by the court of first trial – Ruling no. 741/June 12, 2018 dismisses the civil action filed by the plaintiff. Ruling was appealed within 10 days from the communication date. Appeal was dismissed according to Decision no. 532/2018. Settled by the court of first trial. This Record is the basis of the complaint of violation representing case file no. 3246/317/2017 pending before TG. Carbunesti Court of Law. Ruling 834/25.05.2018 dismissed the action. Recourse was filed by the petitioner. Not established Finalized Not established 111 4279/317/2017 - Tg. Cărbunești Court of Law Complaint of violation SNGN ROMGAZ SA – Suc. Tg. Mures – petitioner Politia Hurezani- respondent 112 4606/102/2017 – Mures County Court of Law corruption SNGN ROMGAZ SA– injured party 113 4573/102/2017- Mures County Court of Law Labour-related litigation Dîmbean Alexandru Liviu - plaintiff Banu Sergiu Victor, Matei Gheorghe, Avram Pantelimon - defendants SNGN Romgaz SA – Suc.Tg. Mures - defendantt 114 228/95/2018 Gorj County Court of Law Administrative action for the annulment of Record of Control series GJ no. 00042452/22.06.2017. SNGN ROMGAZ SA – Suc. Tg. Mures – petitioner I.T.M. Gorj - respondent 25 No. 115 File No./ Court of Law 131/102/2018-Mures County Court of Law – Administrative and Fiscal Section Case Plaintiff Defendant Amount (RON) Description Public procurement SNGN ROMGAZ SA- SPEE Iernut - plaintiff SC Lex Guard Security SRL- defendant 5,784.19 Allows the request. Civil Ruling no. 414/13.04.2018. Final. Defendant partially paid the receivables. Compulsory Enforcement file 2390/2018 established at B.E.J. VLAS MARIA CRISTINA. Amount to be recovered: 842.19. Next procedural deadline Compulsory enforcement 116 2798/189/2018- Barlad Court of Law claims SNGN ROMGAZ SA- SPEE Iernut – plaintiff SC Colectiv Energy SRL-defendant SC Contrast Studio SRL-defendant 1,606.50 The value of the receivables represent the value of the prejudice caused to the contracting authority during the contract award procedure. January 31, 2019 117 856/257/2018 Medias Court of Law complaint of violation SNGN Romgaz SA – petitioner ANRE - respondent 200,000 lei The annulment of Record of Findings no. 13603/20.02.2018 and refund of fine. Complaint dismissed. Appeal files. Appeal dismissed. Payment of RON 566.38 representing court fess. Finalized 118 856/257/2018/a1 Medias Court of Law Correction of clerical error ANRE - petitioner SNGN Romgaz SA – respondent 163.09 Correction of clerical error – court fees. Adjoined to case file 856/257/2018. Finalized 119 1192/257/2018 Medias Court of Law Complaint of violation SNGN Romgaz SA – petitioner ANRE - respondent 25,000 lei 120 1464/86/2015- Suceava County Court of Law Claims, specific performance Buliga Oana-plaintiff Raffles Energy SRL – principal-defendant, Romgaz SA- defendant-intervener following the motion to intervene as party defendant Annulment of complaint of violation no.18.819/09.03.2018 and refund of fine value. Romgaz motion dismissed by Ruling 1023/19.06.2018. Not communicated. Appeal to supplement the ruling with court fees. filed. Appeal dismissed. Motion January 21, 2018 In the summons, the plaintiff requested that the defendants are compelled to remove the pipeline located on her land or to pay damages until the date of action. From the action date onwards the defendants are required to pay damages in exchange for lack of land use, to conclude a convention and to pay an annual indemnification according to Law 123/2012. Romgaz filed a statement of defence. Expertise was ordered. The term was postponed because there was no expertise report. January 22, 2019 26 No. 121 File No./ Court of Law Case Plaintiff Defendant Amount (RON) Description 1174/251/2018 – LUDUS Court of Law Complaint of violation PVCSC ANAR 0005500/09.05.2018 SNGN ROMGAZ SA – petitioner Apele Romane - respondent 35,000 122 943/251/2018 – LUDUS Court of Law Complaint of violation PVCSC GNM 04270/17.04.2018 SNGN ROMGAZ SA – petitioner Garda Nationala de mediu 100,000 123 922/251/2018 – LUDUS Court of Law Complaint of violation PVCSC ANAR 0005527/14.04.2018 SNGN ROMGAZ SA – petitioner Apele Romane - respondent 40,000 124 2575/257/2018 – MEDIAS Court of Law Complaint of violation PVCSC ANRE 42946/06.06.2018 SNGN ROMGAZ SA – petitioner ANRE- respondent 0 125 1322/85/2018 – SIBIU County Court of Law Patrimonial liability 126 1323/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor Mihai Sandu- defendant 8,107 Fine - accidental pollution at Iernut on 13.04.2018. Settlement: because of lack of grounds, rejection of complaint against Report of Findings series ANAR no. 0005500/09.05.2018. Right to appeal within 30 days from the communication date. Ruling 521/2018. Filed on November 9, 2018 and registered with Mures County Court of Law. Statement of defence. Fine - accidental pollution at Iernut on 13.04.2018. Partially allows the complaint. Partial annulment of the Report of Findings no. GNM no. 04270/17.04.2018 meaning the reduction of fine from RON 100.000 to RON 50,000. Right to file an appeal within 30 days from the communication. Civil Ruling 871/2018. Appeal filed on December 20, 2018. Fine - not informing about the incident – accidental pollution at Iernut 13.04.2018. Dismisses complaint filed by the petitioner against the Report of Findings series ANAR nr.0005527 of the respondent ADMINISTRAŢIA NAŢIONALĂ „APELE ROMÂNE” ADMINISTRAŢIA BAZINALĂ DE APĂ MUREŞ, Right to file an appeal within 30 days from the communication. Civil Ruling 827/ 08.11.2018. Warning – the submission of documentation for licence update is overdue. Settlement: Decline the ruling of this case file. Allows the motion to dismiss due to lack of territorial competence of Medias Court of Law specified in the statement of defence. Declines in favour of Bucuresti Sector 2 Court of Law. Final Ruling 1358/September 27, 2018. Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Next procedural deadline March 5, 2019 Not established Not established Stay of proceedings Bati Ioan - defendant 4,967 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings 27 Case Plaintiff Defendant Amount (RON) Description Bogdan Nicolae- defendant 8,581 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Next procedural deadline Stay of proceedings No. 127 File No./ Court of Law 1324/85/2018 – SIBIU County Court of Law Patrimonial liability 128 1325/85/2018 – SIBIU County Court of Law Patrimonial liability 129 1326/85/2018 – SIBIU County Court of Law Patrimonial liability 130 1327/85/2018 – SIBIU County Court of Law Patrimonial liability 131 1328/85/2018 – SIBIU County Court of Law Patrimonial liability 132 1329/85/2018 – SIBIU County Court of Law Patrimonial liability 133 1330/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor Negrutiu Mircea Rares- defendant 827 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Sandu Mircea Valentin- defendant 10,631 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Alexe Calina- defendant 12,191 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Voinea Elena- defendant 347 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Grusea Veronica Rodica - defendant 11,758 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Popa Elena- defendant 6,956 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings 28 Case Plaintiff Defendant Amount (RON) Description Opriscan Mihai Liviu- defendant 1,124 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Next procedural deadline Stay of proceedings No. 134 135 136 File No./ Court of Law 1331/85/2018 – SIBIU County Court of Law 1332/85/2018 – SIBIU County Court of Law 1333/85/2018 – SIBIU County Court of Law Patrimonial liability Patrimonial liability Patrimonial liability 137 1338/85/2018 – SIBIU County Court of Law Patrimonial liability 138 1339/85/2018 – SIBIU County Court of Law Patrimonial liability 139 1340/85/2018 – SIBIU County Court of Law Patrimonial liability 140 1341/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor Tilicea Rares Ionut - defendant Negoescu Stefan Cornel- defendant 12,798 9,824 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Stay of proceedings Moldovan Simion- defendant 17,672 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Sabau Ioan Marius- defendant 17,318 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Diac Ruben- defendant 19,297 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Moldovan Mircea- defendant 19,420 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings 29 Case Plaintiff Defendant Amount (RON) Description Foidas Ion- defendant 18,864 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Next procedural deadline Stay of proceedings No. 141 File No./ Court of Law 1342/85/2018 – SIBIU County Court of Law Patrimonial liability 142 1343/85/2018 – SIBIU County Court of Law Patrimonial liability 143 1344/85/2018 – SIBIU County Court of Law Patrimonial liability 144 1345/85/2018 – SIBIU County Court of Law Patrimonial liability 145 1346/85/2018 – SIBIU County Court of Law Patrimonial liability 146 1347/85/2018 – SIBIU County Court of Law Patrimonial liability 147 1348/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor Nedelea Lucica - defendant 17,811 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Kranics Ervin- defendant 18,963 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Moga Ioan- defendant 16,473 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Popa Liviu Dan- defendant 14,026 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Nenisanu Marius- defendant 20,973 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Sardan Cornelia- defendant 19,970 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings 30 Case Plaintiff Defendant Amount (RON) Description Strava Catalin Horea - defendant 18,749 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Next procedural deadline Stay of proceedings No. 148 File No./ Court of Law 1349/85/2018 – SIBIU County Court of Law Patrimonial liability 149 1350/85/2018 – SIBIU County Court of Law Patrimonial liability 150 1351/85/2018 – SIBIU County Court of Law Patrimonial liability 151 1352/85/2018 – SIBIU County Court of Law Patrimonial liability 152 1353/85/2018 – SIBIU County Court of Law Patrimonial liability 153 1354/85/2018 – SIBIU County Court of Law Patrimonial liability 154 1355/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor Oprisor Gheorghe- defendant 24,560 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Ionescu Laurentiu Lucian- defendant 25,227 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Burtumac Marin - defendant 13,982 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Ilinca Dan Claudiu - defendant 8,669 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Suciu Stelian- defendant 11,050 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Rotar Angela Simona- defendant 12,646 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings 31 Case Plaintiff Defendant Amount (RON) Description Serban Dumitru- defendant 12,742 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Next procedural deadline Stay of proceedings No. 155 File No./ Court of Law 1356/85/2018 – SIBIU County Court of Law Patrimonial liability 156 1362/85/2018 – SIBIU County Court of Law Patrimonial liability 157 1363/85/2018 – SIBIU County Court of Law Patrimonial liability 158 1364/85/2018 – SIBIU County Court of Law Patrimonial liability 159 1365/85/2018 – SIBIU County Court of Law Patrimonial liability 160 1366/85/2018 – SIBIU County Court of Law Patrimonial liability 161 1367/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor Mares Adrian Alexandru - defendant 24,945 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Stefanescu Adina Camelia- defendant 10,937 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Stoicovici Stefan- defendant 12,512 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Bucur Olga- defendant 12,782 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Kurtinecz Iosif - defendant 24,578 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Chisalita Dumitru- defendant 23,935 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings 32 Case Plaintiff Defendant Amount (RON) Description Cismaru Marin - defendant 30,939 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Next procedural deadline Stay of proceedings No. 162 File No./ Court of Law 1368/85/2018 – SIBIU County Court of Law Patrimonial liability 163 1369/85/2018 – SIBIU County Court of Law Patrimonial liability 164 1370/85/2018 – SIBIU County Court of Law Patrimonial liability 165 1371/85/2018 – SIBIU County Court of Law Patrimonial liability 166 1372/85/2018 – SIBIU County Court of Law Patrimonial liability 167 1373/85/2018 – SIBIU County Court of Law Patrimonial liability 168 1374/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor Kovacs Tibor- defendant 21,834 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Stoicovici Ioan - defendant 24,622 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Cristea Nicolae - defendant 23,266 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Stoia Doia - defendant 22,771 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Zainea Mioara - defendant 22,498 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Preda Luminita Letitia - defendant 23,355 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings 33 Case Plaintiff Defendant Amount (RON) Description Jude Aristotel Marius - defendant 25,591 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Next procedural deadline Stay of proceedings No. 169 File No./ Court of Law 1273/85/2018 – SIBIU County Court of Law Patrimonial liability 170 1274/85/2018 – SIBIU County Court of Law Patrimonial liability 171 1275/85/2018 – SIBIU County Court of Law Patrimonial liability 172 1276/85/2018 – SIBIU County Court of Law Patrimonial liability 173 1277/85/2018 – SIBIU County Court of Law Patrimonial liability 174 1279/85/2018 – SIBIU County Court of Law Patrimonial liability 175 1278/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor Ionascu Lucia - defendant 46,118 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Moldovan Radu Costica - defendant 26,725 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Dobrescu Dumitru - defendant 45,981 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Lucaci Emil - defendant 4,858 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Georgescu Cristian - defendant 20,234 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Rotar Dumitru Gheorghe - defendant 46,644 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings 34 Case Plaintiff Defendant Amount (RON) Description Stefanescu Dan Paul - defendant 44,588 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Next procedural deadline Stay of proceedings No. 176 File No./ Court of Law 1280/85/2018 – SIBIU County Court of Law Patrimonial liability 178 1281/85/2018 – SIBIU County Court of Law Patrimonial liability 178 1282/85/2018 – SIBIU County Court of Law Patrimonial liability 179 1283/85/2018 – SIBIU County Court of Law Patrimonial liability 180 1284/85/2018 – SIBIU County Court of Law Patrimonial liability 181 1285/85/2018 – SIBIU County Court of Law Patrimonial liability 182 1284/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor Pavlovschi Vlad - defendant 1,811 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Birsan Mircea Lucian - defendant 41,505 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Ciolpan Vasile- defendant 39,665 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Radu Gheorghe - defendant 30,134 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Bodogae Horea - defendant 40,885 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Antal Francisc - defendant 38,782 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings 35 No. 183 File No./ Court of Law 1287/85/2018 – SIBIU County Court of Law Patrimonial liability Case Plaintiff Defendant Amount (RON) Description Morariu Dan Nicolae - defendant 39,366 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Next procedural deadline Stay of proceedings 184 1288/85/2018 – SIBIU County Court of Law Patrimonial liability Stancu Lucian - defendant 44,691 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor 185 1304/257/2018 MEDIAS Court of Law Complaint against ANRE Report of Findings SNGN ROMGAZ SA – petitioner ANRE – respondent 50,000 On June 20, 2018 the court rejects the complaint of violation filed by Romgaz. Ruling not communicated. Romgaz filed appeal. Appeal dismissed. Finalized 186 523/85/2018 –SIBIU County Court of Law establishment of nullity SNGN ROMGAZ SA – plaintiff SPRL Mocanu si asociatii - defendants 504,916.61 Establishment of nullity of the legal assistance contract and the refund of RON 504,916.61. Declined competence in favour of Bucharest County Court of Law. Stay of proceedings 187 8525/180/2018 Bacau Court of Law Claims SAVIN MIHAI - plaintiff SNGN ROMGAZ SA (SUC.MEDIAS) defendant 15,000,000 188 1195/85/2018 Sibiu County Court of Law Administrative proceedings ROMGAZ SNGN SA (SUC.MEDIAS) plaintiff Muncii Inspectia Bucuresti - defendant BACAU County Court of Law January 18, 2019 the challenge of material Damages for a piece of land of 26,000 sq.m. expropriated for the well 4 Batranesti. Sends the cause for arbitrary allocation to a civil section panel. Final Ruling June 19, 2018. Settlement of cause: allows lack of competence of Bacau Court of Law raised by the defendants in the statement of defence. Declines the settlement competence in favour of Bacau County Court of Law- 1st Civil Section. Without the right to appeal. Ruling 5960/2018 17.10.2018 Not extending the approval to occupy 2nd degree work conditions for Gas Compressor Stations. Registered on 28.06.2018 Settlement: Decline the settlement of the case file Settlement in brief: allows the challenge of material lack of competence of Sibiu County Court of Law specified in the statement of defence. As a result, it declines its competence in settling the case file in favour of Alba-Iulia Court of Appeal – Administrative and Fiscal Section. No right to file appeal/recourse. Ruling: 670/2018 08.10.2018 36 File No./ Court of Law Case Plaintiff Defendant Amount (RON) Description No. 189 4435/257/2018 Medias Court of Law tort liability ZIEGLER FRIEDERICH plaintiff SNGN ROMGAZ SA- SIRCOSS Medias - defendant 10,000 190 2828/85/2018 Sibiu County Court of Law Labour-related litigation BARNA GHEORGHE challanger - SNGN ROMGAZ SA –SIRCOSS Medias respondent 191 6332/94/2018 – Buftea Court of Law litigiului: Obiectul - pretenții – restituire și redevență cheltuieli de judecată. SNGN ROMGAZ SA – Suc. Tg. Mures –plaintiff Comuna U.A.T. Consiliul Gruiu și Local - Comuna Gruiu -defendant Equivalent value of 5% of the base salary over a 3 month period. 100,170.47 lei 192 858/251/2018 Luduș Court of Law eviction SNGN ROMGAZ SA- SPEE Iernut - plaintiff Neacșa defendant Ioan - - 193 Dosar nr. 5906/320/2018 Tg. Mures Court of Law declaratory action Mariana- Aldica Camelia, Lumperdean Liliana, Daniela, Zaharia, Eduard-Adrian, Stancu Robert – Farkas Stancu Stancu - SNGN ROMGAZ SA- SPEE Iernut –parata Electrocentrale SC Bucuresti SA- defendant 37 Next procedural deadline January 28, 2019 February 7, 2019 Ruling not communicat ed Not established Not established The defendant filed an action for tort liability to compel the defendant to pay damages representing the equivalent value of repairs required to remove degradation caused to the plaintiff’s house by the heavy load traffic performed by the defendant in Axente Sever. A statement of defence was filed. Challenger filed and action against the sanctioning decision. The case file is pending before Sibiu County Court of Law. After concluding in 2014 a concession contract in relation to Lipia 1 well, the Local Council of Gruiu Commune terminated in the same year the contract motivated by the fact that the land does not belong to UAT, meaning that Gruiu Commune cannot be concession provider. Due to the circuit of documents in the branch the relating royalty was paid until 2017 without being due. The court of first instance settled the case file, allowing the claim according to Ruling no. 7396/20.12.2018. Compels the defendant to the payment of RON 100,170.47 as refund of undue payment. Right to file an appeal within 30 days from the communication of the ruling. Action filed for the eviction of the defendant from the apartment located in Iernut (Address M. Eminescu Str., Bl. 25, App. 23, Mureș County) and to compel him to the payment of the equivalent value of the unachieved gain due to lack of usage, in amount of RON 48 as rent applied during the period of time prior to the contract termination, starting with February 01, 2018 until the actual eviction from the apartment and of court fees. The court allows the action. Ruling no. 803/01.11.2018. Right to file an appeal. The court is requested to compel the defendants to authorise the deletion of mortgage registered in favour of Electrocentrale Mures Subsidiary in Real Estate Register no. 122172-C1-U9 Tagru-Mures. The court allows the challenge of lack of passive capacity to stand trial in relation to Romgaz raised by the latter. As such, the court dismisses the civil action filed against the defendant. Partly allows the civil action filed by the plaintiffs AMC, LL, FD, SZ, SEA and SR against the receiver SQFB and defendant and supervised by legal the No. File No./ Court of Law Case Plaintiff Defendant Amount (RON) Description Next procedural deadline plaintiff consequently compels the defendant to delete the mortgage from the Real Estate Register. It compels the defendant to pay to the plaintiffs RON 1,728.68 as court fees. Civil ruling no. 445/12.10.2018. Right to file an appeal. 194 1885/320/2018 Tg Mures Court of Law Tort liability Deji-Nagylaki Orsolya, Nagylaki Ioan-plaintiffs SNGN ROMGAZ SA- defendant 100,000 The plaintiffs request the court to compel the defendant to the payment of moral and material damages in amount of 100,000 as a result of the death of Nagylaki Akos further to a work accident suffered at SPEE Iernut. January 15, 2019 195 934/85/2018- Sibiu County Court of Law Challenge against unilateral decision to amend work contract Marian Cristian-plaintiff Victor SNGN Romgaz SA- defendant 196 1424/85/2018 – Sibiu County Court of Law Challange sanctioning decision against Marian Cristian - plaintiff Victor SNGN Romgaz S.A. - defendant 197 1604/85/2018 – Sibiu County Court of Law Challange sanctioning decision against Marian Cristian - plaintiff Victor SNGN Romgaz S.A. - defendant 38 In the challenge, the plaintiff requested: - the establishment of nullity of the unilateral decision to amend work contract 3245/March 01, 2007 or of the addendum concluded for this scope. - secondary: the annulment of the unilateral decision to amend work contract 3245/March 01, 2007 or the addendum concluded for this scope - to compel the defendant to the payment of the difference of unpaid wage-related rights from March onwards To compel the defendant to the payment of court fees. Statement of defence was filed. On 05.11.2018, civil ruling 723/2018 dismissed the challenge filed by the plaintiff. Appeal not filed so far. The plaintiff requested: - - - Establishment of nullity of disciplinary sanctioning decision Secondary: decision To compel the defendant to the payment of court fees. the annulment of disciplinary sanctioning Statement of defence was filed. On 25.10.2018, civil ruling 708/2018 allowed the challenge filed by the plaintiff. Appeal filed on 07.12.2018 by Romgaz. The plaintiff requested: - The annulment of the selection procedure and of the relating results. The selection procedure was organised by Romgaz of the position of Head of HR Development Office. Statement of defence was filed. On 21.11.2018, civil ruling 779/2018 dismissed the challenge filed by the plaintiff. Appeal not filed so far. Not established Case Plaintiff Defendant Amount (RON) Description No. 198 File No./ Court of Law 1322/85/2017– Sibiu County Court of Law Claims BNI Domonique plaintiff Hentea – DGRFP Brasov – SNGN plaintiff Romgaz – impleader S.A. RON 408.000 additional VAT +RON 348,612 and interest accessories 199 4887/2/2018 Bucharest Court of Appeal Administrative proceedings SNGN Romgaz SA – plaintiff ANRE – defendant 200 1596/85/2018 Sibiu County Court of Law monies due Metea Virgil Marius -plaintiff SNGN Romgaz SA – defendant 1,821,749 lei + legal plus interest until the actual date of payment 201 2458/257/2018 Medias Court of Law Complaint of violation SNGN Romgaz SA – petitioner ANRE - respondent 7,500 202 2369/257/2018 Medias Court of Law Complaint of violation SNGN Romgaz SA petitioner ANRE - respondent 7,500 Next procedural deadline January 28, 2019 January 22, 2019 21, March 2019 Not established -compel to the payment of RON 408,000 representing additional VAT and of RON 348,612 as interest and accessories. -court of first trial Romgaz filed a statement of defence. On January 7, 2019 the case was postponed for filing an addendum to the expertise report. Compliance obligation: to compel ANRE to respond to Romgaz requirements in connection with making information available with respect to how all domestic gas producers complied with ANRE Orders 24/2013 and 161/2014. The court rejected the stay of proceedings motion filed by ANRE In the summons, the plaintiff requested the court to compel Romgaz to pay RON 1,821,749 (according the Contract of Mandate) +the legal interest until the actual date of payment. Is amount is formed of RON 380,027 owed according to Board’s Resolution no. 23/2017 for the modification of variable subcomponent II for 2015, RON 1,078,470 representing the second variable subcomponent for 2017, RON 363,252 representing the difference from fixed components not updated according to INS, as specified in the Contract of Mandate for the entire mandate term. Romgaz filed a statement of defence. Motion to dismiss for lack of functional competence was allowed. On January 10, 2019, the court allowed documentary evidence. On 13.09.2018 the court allows Romgaz complaint. Changes the fine into a notice of warning and orders the refund of RON 7,500. Right to file an appeal within 30 days from the communication of the ruling. The respondent files appeal. The statement of defence was filed. The annulment of the complaint of violation or the change of fine into warning notice is requested. On October 3, 2018 the competence was declined in factor of the Bucharest Sector 2 Court of Law. 203 2051/85/2018 Sibiu County Court of Law Presiding order judge’s Micu Radu- Constantin - plaintiff SNGN Romgaz SA – defendant GSM Resolution no.8/2018 is requested to be annulled. Request dismissed with the right to file an appeal within 5 days from the ruling. Appeal was filed. January 29, 2019 39 No. 204 File No./ Court of Law Case Plaintiff Defendant 1974/85/2018 Sibiu County Court of Law Annulment of GSM Resolution Micu Radu- Constantin - plaintiff SNGN Romgaz SA – defendant Amount (RON) Description Annulment of GSM Resolution no.8/ 2018. Next procedural deadline February 13, 2019 205 29466/3/2018 Bucharest County Court of Law Challenge of ELCEN final list of creditors SNGN Romgaz SA - challenger ELCEN Bucuresti respondent - Case file separated from 35304/3/2016 (subscription to the ELCEN final list of creditors). Civil Ruling no. 6984/26.11.2018 dismissed the challenge. Appeal was filed on 13.12.2018. Appeal case file is not pending before a court. Not established 206 424/57/2018 - Alba of Court Iulia Appeal Revision Kovacs Ladislau – claimant in revision SNGN Romgaz SA – respondent 279,230.93 207 3580/257/2018 al Medias Court of Law Appeal enforcement against ROMGAZ - SIRCOSS SNGN SA challenger ANAF – Directia General a Marilor Contribuabili 2,000 issued for case Revision of Ruling no. 737/03.07.2018 file 2496/102/2015 by Alba Iulia Court of Appeal, whereby the court partly allowed Romgaz appeal (requested amount RON 318,881.96) meaning that the defendant is compelled to pay RON 279,230.93 (formed of RON 223,613.5 + 53,667.58 VAT representing patrimonial damages and RON 1,950 court fees). The debt is the scope of a compulsory enforcement file no. 1656/2018. On 10.10.2018 the motion for revision was dismissed. The claimant in revision filed a recourse. Appeal against enforcement of taxation decision no. 13819/7.8.2018. Appeal against enforcement was allowed. 208 2041/85/2018 Sibiu County Court of Law Monies due Metea Virgil Marius - plaintiff SNGN Romgaz SA – defendant 81,267.96 209 258/2/2018 Alba- Iulia Court of Appeal Annulment of taxation decision F-AB 54/10.04.2017 emise de DGRFP Braşov – AJFP Alba SNGN Romgaz SA - plaintiff DGRFP Braşov – AJFP - defendant Alba 40 The plaintiff requests the court to compel the defendant to pay RON 81,267.96 as damages for the unjust revocation of the Contract of Mandate (member of the BoD). Romgaz filed a statement of defence. On December 10, 2018 the competence was declined in favour of panel “Litigation with professionals” of Sibiu County Court of Law. The first term was not established. Request to annul the documents issued by DGRFP Brasov – AJFP Alba, namely the Fiscal Inspection Report no. F-AB 49/10.04.2017 and Taxation decision F-AB 54/10.04.2017. Civil Ruling 205 issued on 17.10.2018 dismissed the exception for lack of passive capacity to stand trial of Directia Generala de Solutionare a Contestatiilor din cadrul ANAF. Dismissed the statute of limitation motion relating to fiscal findings for Not established Not established No. File No./ Court of Law Case Plaintiff Defendant Amount (RON) Description 2010. Allowed the motion filed by Romgaz against the defendants and annulled the taxation decision no. F-AB 54/10.04.2017 issued by the defendant Directia Generala Regionala a Finantelor Publice Brasov – Administratia Judeteana a Finantelor Publice Alba and Decision no. 54/31.01.2018 issued by Agentia Nationala de Administrare Fiscala – Directia Generala de Solutionare a Contestatiilor. The Ruling is not final. Recourse may be filed within 15 days from the communication. Contractual liability of the defendants and payment in favour of Romgaz of the amounts established in the Court of Accounts Report as prejudice to be borne by Romgaz. Next procedural deadline Stay of proceedings 210 15852/3/2018 – Bucharest County Court of Law Obiectul contractual liability litigiului: SNGN Romgaz SA -plaintiff 211 2095/85/2018 – SIBIU County Court of Law Patrimonial liability 212 2088/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor OMV PETROM SA, AMROCO ENERGY RAFFLES SRL, ENERGY SRL, STRATUM ENERGY ROMANIA - defendant LLC Cornea Daniel - defendant 7,838 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Sorescu Eugen - defendant 21,222 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings 213 1808/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor Arcanu Dan - defendant 214 1801/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor Barbu Ionut - defendant 3,204 3,289 41 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Case Plaintiff Defendant Amount (RON) Description Brandas Mircea - defendant 11,175 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Next procedural deadline Stay of proceedings No. 215 File No./ Court of Law 1798/85/2018 – SIBIU County Court of Law Patrimonial liability 216 1811/85/2018 – SIBIU County Court of Law Patrimonial liability 217 1793/85/2018 – SIBIU County Court of Law Patrimonial liability 218 1812/85/2018 – SIBIU County Court of Law Patrimonial liability 219 1799/85/2018 – SIBIU County Court of Law Patrimonial liability 220 1809/85/2018 – SIBIU County Court of Law Patrimonial liability 221 1807/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor Butaru Claudia - defendant 6,999 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Catanescu Florin - defendant 9,184 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Chivu Tudor - defendant 4,990 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Dragulin Nicolae - defendant 10,784 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Dragulinescu Romeo Adrian - defendant 9,833 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Enescu Cosmin - defendant 7,882 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings 42 Case Plaintiff Defendant Amount (RON) Description Farcas Florin - defendant 2,688 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Next procedural deadline Stay of proceedings No. 222 File No./ Court of Law 1806/85/2018 – SIBIU County Court of Law Patrimonial liability 223 1800/85/2018 – SIBIU County Court of Law Patrimonial liability 224 1795/85/2018 – SIBIU County Court of Law Patrimonial liability 225 1888/85/2018 – SIBIU County Court of Law Patrimonial liability 226 1890/85/2018 – SIBIU County Court of Law Patrimonial liability 227 1887/85/2018 – SIBIU County Court of Law Patrimonial liability 228 1984/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor Filip Iulian George - defendant 12,126 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Galusca Dinu - defendant 9,801 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Girlicel Victor Cristian - defendant 12,729 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Glica Andrei - defendant 3,029 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Ionescu Viorica Mariana - defendant 14,878 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Ionita Emil - defendant 7,132 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings 43 Case Plaintiff Defendant Amount (RON) Description Iordache Constantin - defendant 3,891 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Next procedural deadline Stay of proceedings No. 229 File No./ Court of Law 1804/85/2018 – SIBIU County Court of Law Patrimonial liability 230 1889/85/2018 – SIBIU County Court of Law Patrimonial liability 231 1950/85/2018 – SIBIU County Court of Law Patrimonial liability 232 1813/85/2018 – SIBIU County Court of Law Patrimonial liability 233 1897/85/2018 – SIBIU County Court of Law Patrimonial liability 234 1892/85/2018 – SIBIU County Court of Law Patrimonial liability 235 1891/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor Jipa Bigdan Catalin - defendant 14,304 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Leca Gheroghe Adrian - defendant 7,838 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Manda Marin - defendant 13,286 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Mihai Constantin - defendant 3.676 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Mihalcea Alexandru - defendant 7,862 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Moise Sanda Madalina - defendant 11,782 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings 44 Case Plaintiff Defendant Amount (RON) Description Muresan Alexandru - defendant 3, 116 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Next procedural deadline Stay of proceedings No. 236 File No./ Court of Law 1893/85/2018 – SIBIU County Court of Law Patrimonial liability 237 1895/85/2018 – SIBIU County Court of Law Patrimonial liability 238 1896/85/2018 – SIBIU County Court of Law Patrimonial liability 239 1949/85/2018 – SIBIU County Court of Law Patrimonial liability 240 2086/85/2018 – SIBIU County Court of Law Patrimonial liability 241 2086/85/2018 – SIBIU County Court of Law Patrimonial liability 242 2081/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor Negru Petru - defendant 4,212 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Palade Monica - defendant 10,943 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Parvu Laurentiu - defendant 12,211 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Paun Alexandru - defendant 11,782 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Pellarini Marius - defendant 13,679 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Popescu Dumitru - defendant 15,505 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings 45 Case Plaintiff Defendant Amount (RON) Description Popescu Ovidiu Dumitru - defendant 16,064 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Next procedural deadline Stay of proceedings No. 243 File No./ Court of Law 2082/85/2018 – SIBIU County Court of Law Patrimonial liability 244 1796/85/2018 – SIBIU County Court of Law Patrimonial liability 245 1797/85/2018 – SIBIU County Court of Law Patrimonial liability 246 1802/85/2018 – SIBIU County Court of Law Patrimonial liability 247 2084/85/2018 – SIBIU County Court of Law Patrimonial liability 248 2083/85/2018 – SIBIU County Court of Law Patrimonial liability 249 1805/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor Radulescu Ioan - defendant 12,117 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Rosca Constantin - defendant 4,561 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Rosu Marin - defendant 11,633 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Scarlatescu Gheorghe - defendant 9,632 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Scarlatescu Virgil - defendant 39,086 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Smarandache Ioana - defendant 11,098 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings 46 Case Plaintiff Defendant Amount (RON) Description Soptea Nicolae - defendant 16,733 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Next procedural deadline Stay of proceedings No. 250 File No./ Court of Law 2087/85/2018 – SIBIU County Court of Law Patrimonial liability 251 1795/85/2018 – SIBIU County Court of Law Patrimonial liability 252 2096/85/2018 – SIBIU County Court of Law Patrimonial liability 253 1803/85/2018 – SIBIU County Court of Law Patrimonial liability 254 2085/85/2018 – SIBIU County Court of Law Patrimonial liability 255 1794/85/2018 – SIBIU County Court of Law Patrimonial liability 256 2093/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor SNGN ROMGAZ SA – plaintiff creditor Stanciu Elena - defendant 25,185 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Susnea Adrian - defendant 11,066 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Vasile Constantin - defendant 17,558 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Vecerdea Dan Adrian - defendant 37,428 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Vizireanu Vasile - defendant 16,628 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings Vrabioru Roxana - defendant 6,797 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. Stay of proceedings 47 No. 257 File No./ Court of Law 1810/85/2018 – SIBIU County Court of Law Case Plaintiff Defendant Amount (RON) Description Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor Zehan Ioan - defendant 10,479 Recovery of regular overtime pay. Administrative proceedings. Upon Romgaz request, the stay of proceedings was ordered until the final settlement of case file no. 2375/85/2016. 258 10167/320/2018 – Tg. Mureș Court of Law Claims AGROCOM - S.C. ALBERT S.R.L plaintiff S.N.G.N. „ROMGAZ" S.A. MEDIAȘ - defendant 13,581.40 259 10010/320/2018 - Tg. Mureș Court of Law Claims S.N.G.N. „ROMGAZ" S.A. - Tg.Mureş Branch - plaintiff Ținteșan Viorica defendant - 7,500 The plaintiff claims damages in amount of RON 13,581.4 representing the equivalent value of discing services supplied by SC C&KING SRL according to agricultural services agreement no. 10/October 10, 2016. While performing the services, the discing unit was damaged after colliding against well-head Bozed 10. After concluding in 2016 the rental agreement for a 2,500 sq.m of for land intervention-workover at Sincai 13 well, in 2018 the Branch found that one of the two co-owners of the land was not in fact an owner, meaning that the defendant was not entitled to receiving the rental payment. in Pusta, Sincai Commune, Mures County located Next procedural deadline Stay of proceedings February 12, 2019 February 7, 2019 260 4079/317/2018 Tg. Cărbunești Court of Law Claims, liability contractual S.N.G.N. „ROMGAZ" S.A. - Tg.Mureş Branch - plaintiff PRIMĂRIA STEJARI -defendant U.A.T. 1,814.26 Non-payment of RON 1,814.26 representing the equivalent value of gas and late payment penalties supplied to the multifunctional youth centre, according to the invoices filed in the case file. Not established 261 1098/102/2018 Mureș County Court of Law Claims Cucu Ioana -plaintiff S.N.G.N. „ROMGAZ" S.A. - Sucursala Tg.Mureş - defendant Not specified upon filing the action 262 4572/317/2018 5978/317/2016 Tg. Cărbunești Court of Law Claims, liability contractual 263 10166/320/2018 Tg. Mures Court of Law Claims S.N.G.N. „ROMGAZ" S.A. - Tg.Mureş Branch - plaintiff SC Astra Shuttle Logistic Services SRL Pitesti -plaintiff PRIMĂRIA U.A.T. STEJARI -defendant 2,454.88 SNGN Romgaz SA STTM Tg. Mures – defendant 21,362.29 48 To compel the branch to conclude a land rental agreement starting with 2016 covering the entire period when land piece T45 A 623/3/1 was used, and the payment of rental fee, claims and court fees. Damages in relation to lack of usage due to the temporary occupation of a 2,580sq.m piece of land from the same parcel. Non-payment of RON 2,454.88 representing the equivalent value of gas, and late payment penalties, supplied to the medical unit, according to the invoices filed in the case file. representing The summons requested to court to compel the defendant to pay RON 21,362.29 the defendant according to invoice number AG no. 143/31.01.2018 and AG nr. 144/31.01.2018, services invoiced based on subsequent contract no. 151/April 24, 2017. Romgaz STTM filed a statement of defence. transportation services supplied to 08.01.2019 Not established Not established File No./ Court of Law Case Plaintiff Defendant Amount (RON) Description No. 264 4435/257/2018 Medias Court of Law Tort proceedings liability 10,000 Ziegler Friederich, domiciled in Soala village, no. 149, Sever Axente commune, Sibiu County Savin Mihai SNGN Romgaz SA STTM Tg. Mures and SIRCOSS Medias and Axente Sever Commune represented by mayor – defendants SNGN Romgaz SA – defendant the The summons requested the court to compel de defendants to jointly pay RON 10,000 with relating legal interest representing the equivalent value of alleged degradations and repairs made to the real estate owned by the plaintiff located in Axente Sever, topographical number 5588, and land registry number 100463. Romgaz filed a statement of defence. Annulment of Government Decision and of Expropriation Decision CSIKI ADRIAN ATILA –defendant IOAN FODOR SNGN Romgaz SA – Medias Branch – injured party Burglary Next procedural deadline January 11, 2019 February 6, 2019 and Administrative fiscal proceedings - anullment of adiministrative document Criminal proceeding Aggravated theft 265 455/32/2018 Bacau Court Appeal of 266 2602/308/2018 Sighisoara Court of Law 267 3903/308/2018 Sighisoara Court of Law TOPLICEAN NECULAI plaintiff Romgaz - defendant Requests the court to compel us to the registration of the real-estate Nades-canton sold to the employee according to sales contract no. 10773/1997 February 5, 2019 268 4435/257/2018 Medias Court of Law civil proceedings liability ZIEGLER FRIEDERICH plaintiff SIRCOS si STTM - defendants - 20,000 STTM heavy load trucks drive to well Soala at high speed damaging the house. The plaintiff requests RON 20,000 damages. Statement of defence no. 20667/19.11.2018 was filed. 28.01.2019 269 6640/285/2018 Radauti Court of Law Administrative and fiscal proceedings - annulment of complaint of violation ROMGAZ Suc.Medias petitioner prin - ANRE respondent 300,000 - fine 270 1532/1/2015 – High Court of Cassation and Justice 2303/1/2017 ICCJ - appeal Bribery offering SNGN SA - parte civila ROMGAZ Rudel Obreja s.a. - defendant 410,000 49 Requests the annulment of the complaint of violation – complaint in connection with Law 123/2012 complaint of violation no. 83648/.11.2018 – fine for lack of licences for operating pipelines upstream of 6 objectives in the Comanesti-Todiresti area. Not established In the case file, Romgaz became civil party for RON 410,000. The request to become civil party was dismissed. Romgaz filed appeal. Romgaz appeal dismissed. Ruling 93/05.06.2018 Recourse for criminal cassation is filed by the defendant Elena Udrea. Not established No. 271 File No./ Court of Law 2724/85/2018 – SIBIU County Court of Law Case Plaintiff Defendant Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor Bosca Gheroghe Lucian - defendant Amount (RON) Description 20,532 Recovery of regular overtime pay. 272 2726/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN SA – creditor ROMGAZ plaintiff Ispasian Dinca - defendant Ioan 41,832 Recovery of regular overtime pay. 273 2720/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN ROMGAZ SA – plaintiff creditor Gliga Viorel- defendant 6,693 Recovery of regular overtime pay. 274 – 2725/85/2018 SIBIU County Court of Law Patrimonial liability 275 – 2727/85/2018 SIBIU County Court of Law Patrimonial liability 276 2747/85/2018 – SIBIU County Court of Law Patrimonial liability 277 2721/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor ROMGAZ plaintiff Hegbeli Doina Virginia - defendant 16,574 Recovery of regular overtime pay. ROMGAZ plaintiff Jampa defendant Ioan - 12,932 Recovery of regular overtime pay. ROMGAZ plaintiff Ioan Popa defendant - 14,980 Recovery of regular overtime pay. ROMGAZ plaintiff Popescu Andrei Iancu - defendant 15,763 Recovery of regular overtime pay. 50 Next procedural deadline Not established March 2019 5, February 07, 2019 05, March 2019 February 7, 2019 Not established Not established Case Plaintiff Defendant Amount (RON) Description No. 278 File No./ Court of Law 2722/85/2018 – SIBIU County Court of Law Patrimonial liability 279 2723/85/2018 – SIBIU County Court of Law Patrimonial liability 280 2796/85/2018 – SIBIU County Court of Law Patrimonial liability 281 – 2804/85/2018 SIBIU County Court of Law Patrimonial liability 282 – 2799/85/2018 SIBIU County Court of Law Patrimonial liability 283 2800/85/2018 – SIBIU County Court of Law Patrimonial liability 284 2794/85/2018 – SIBIU County Court of Law Patrimonial liability SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor ROMGAZ plaintiff Prisca Aurelian Stefan - defendant 20,233 Recovery of regular overtime pay. ROMGAZ plaintiff Stoica Lucian defendant - 35.763 Recovery of regular overtime pay. ROMGAZ plaintiff Cristea Cornel defendant - 11,322 Recovery of regular overtime pay. ROMGAZ plaintiff Antal Victor Tiberiu - defendant 6,516 Recovery of regular overtime pay. ROMGAZ plaintiff Catana Elena Aurica - defendant 9,947 Recovery of regular overtime pay. ROMGAZ plaintiff Catana Emil Gabriel - defendant 14,702 Recovery of regular overtime pay. ROMGAZ plaintiff Costea Florin defendant - 16,071 Recovery of regular overtime pay. 51 Next procedural deadline March 05,2019 Not established February 18, 2019 Not established February 21, 2019 February 21, 2019 Not established No. 285 File No./ Court of Law 2795/85/2018 – SIBIU County Court of Law Case Plaintiff Defendant Patrimonial liability ROMGAZ plaintiff Curca Costel defendant Amount (RON) Description - 18,040 Recovery of regular overtime pay. 286 2766/85/2018 – SIBIU County Court of Law Patrimonial liability 287 2764/85/2018 – SIBIU County Court of Law Patrimonial liability 288 – 2805/85/2018 SIBIU County Court of Law Patrimonial liability 289 – 2765/85/2018 SIBIU County Court of Law Patrimonial liability 290 291 292 2768/85/2018 – SIBIU County Court of Law – 2746/85/2018 SIBIU County Court of Law – 2763/85/2018 SIBIU County Court of Law Patrimonial liability Patrimonial liability Patrimonial liability SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor ROMGAZ plaintiff Diac Rares Codrin - defendant 19,071 Recovery of regular overtime pay. ROMGAZ plaintiff Foloba Mircea defendant - 9,358 Recovery of regular overtime pay. ROMGAZ plaintiff Gaiger Daniel defendant - 10,559 Recovery of regular overtime pay. ROMGAZ plaintiff Gyorke Andrei defendant - 10,893 Recovery of regular overtime pay. ROMGAZ plaintiff Kabai Karoly defendant - 14,293 Recovery of regular overtime pay. ROMGAZ plaintiff Melinescu Veronica Angela - defendant 11,310 Recovery of regular overtime pay. ROMGAZ plaintiff Moise Codruta defendant - 9,506 Recovery of regular overtime pay. 52 Next procedural deadline February 07, 2019 Not established February 18, 2019 February 18, 2019 February 18, 2019 February 18, 2019 Not established February 18, 2019 No. 293 294 295 296 297 298 299 300 301 302 File No./ Court of Law 2762/85/2018 – SIBIU County Court of Law – 2751/85/2018 SIBIU County Court of Law 2767/85/2018 – SIBIU County Court of Law 2979/85/2018 – SIBIU County Court of Law 2974/85/2018 – SIBIU County Court of Law 2977/85/2018 – SIBIU County Court of Law 2973/85/2018 – SIBIU County Court of Law – 2944/85/2018 SIBIU County Court of Law – 2942/85/2018 SIBIU County Court of Law 2940/85/2018 – SIBIU County Court of Law Case Plaintiff Defendant Amount (RON) Description Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor SNGN – SA creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor ROMGAZ plaintiff Nicola defendant Adrian- 10,559 Recovery of regular overtime pay. ROMGAZ plaintiff Todoran Florin defendant - 3,002 Recovery of regular overtime pay. ROMGAZ plaintiff Totan Constantin - defendant 15,810 Recovery of regular overtime pay. ROMGAZ plaintiff Cioban Cristian Augustin - defendant 34,303 Recovery of regular overtime pay. ROMGAZ plaintiff Ciocan Costel defendant - 8,481 Recovery of regular overtime pay. ROMGAZ plaintiff Cotoi Ioan Stefan - defendant 3,194 Recovery of regular overtime pay. ROMGAZ plaintiff Dimbean Gheorghe - defendant 33,126 Recovery of regular overtime pay. ROMGAZ plaintiff Frincu Ovidiu defendant - 13,253 Recovery of regular overtime pay. ROMGAZ plaintiff Grosu Adrian Doru - defendant 18,456 Recovery of regular overtime pay. ROMGAZ plaintiff Hasegan Dorina defendant - 16,317 Recovery of regular overtime pay. 53 Next procedural deadline February 18, 2019 Not established February 21, 2019 Not established Not established Not established Not established Not established February 7, 2019 February 7, 2019 Case Plaintiff Defendant Amount (RON) Description ROMGAZ plaintiff Huidan Alecu Sorin - defendant 9,365 Recovery of regular overtime pay. No. 303 304 305 306 307 308 309 310 311 312 313 File No./ Court of Law 2941/85/2018 – SIBIU County Court of Law – 2938/85/2018 SIBIU County Court of Law 2923/85/2018 – SIBIU County Court of Law 2919/85/2018 – SIBIU County Court of Law 2920/85/2018 – SIBIU County Court of Law 2917/85/2018 – SIBIU County Court of Law – 2918/85/2018 SIBIU County Court of Law – 2817/85/2018 SIBIU County Court of Law 2823/85/2018 – SIBIU County Court of Law 2836/85/2018 – SIBIU County Court of Law 2881/85/2018 – SIBIU County Court of Law Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor SNGN SA – creditor SNGN SA – creditor 16,954 Recovery of regular overtime pay. - 10,131 Recovery of regular overtime pay. Cristian - Ilinca Alexandru defendant Katona Mihai defendant ROMGAZ plaintiff ROMGAZ plaintiff ROMGAZ plaintiff Lechintan Gheorghe defendant 8,858 Radu - Recovery of regular overtime pay. ROMGAZ plaintiff Lit Alexandru defendant ROMGAZ plaintiff Lupu Mircea defendant - 6,611 Recovery of regular overtime pay. - 20,614 Recovery of regular overtime pay. ROMGAZ plaintiff Maior Lucian Miron - defendant 9,146 Recovery of regular overtime pay. ROMGAZ plaintiff Muresan Stefania - defendant 2,875 Recovery of regular overtime pay. ROMGAZ plaintiff Muntean Doina defendant ROMGAZ plaintiff Nasalean Ovidiu defendant ROMGAZ plaintiff Ogrean Oliviu defendant - 16,519 Recovery of regular overtime pay. - 9,690 Recovery of regular overtime pay. - 27,260 Recovery of regular overtime pay. 54 Next procedural deadline Not established Not established Not established Not established Not established February 7, 2019 Not established Not established February 07, 2019 Not established February 07, 2019 No. 314 315 316 317 318 319 320 321 322 323 324 File No./ Court of Law 2818/85/2018 – SIBIU County Court of Law – 2822/85/2018 SIBIU County Court of Law 2820/85/2018 – SIBIU County Court of Law 2921/85/2018 – SIBIU County Court of Law 2943/85/2018 – SIBIU County Court of Law 2945/85/2018 – SIBIU County Court of Law – 2975/85/2018 SIBIU County Court of Law 2915/85/2018 – SIBIU County Court of Law 2913/85/2018 – SIBIU County Court of Law 2916/85/2018 – SIBIU County Court of Law – 2914/85/2018 SIBIU County Court of Law Case Plaintiff Defendant Amount (RON) Description Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor SNGN – SA creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor ROMGAZ plaintiff Pirlea Sorana - defendant Madalina 7,289 Recovery of regular overtime pay. ROMGAZ plaintiff Porutiu Adriana defendant ROMGAZ plaintiff Pszota Marcel defendant - 13,448 Recovery of regular overtime pay. - 12,558 Recovery of regular overtime pay. ROMGAZ plaintiff Ratiu Dorel Liviu - defendant 4,048 ROMGAZ plaintiff Rus Dumitru Traian - defendant 6,570 Recovery of regular overtime pay. Recovery of regular overtime pay. ROMGAZ plaintiff Scridon defendant Ioan - 30,685 Recovery of regular overtime pay. ROMGAZ plaintiff Stefan defendant ioan - 39,488 Recovery of regular overtime pay. ROMGAZ plaintiff Abramiuc Teodor - defendant 20,491 Recovery of regular overtime pay. ROMGAZ plaintiff Andreica Viorel defendant ROMGAZ plaintiff Bacila Dorian defendant - 16,380 Recovery of regular overtime pay. - 18,108 Recovery of regular overtime pay. ROMGAZ plaintiff Bacila Pavel Lucian - defendant 12,558 Recovery of regular overtime pay. 55 Next procedural deadline Not established Not established February 07, 2019 February 07, 2019 February 07, 2019 February 18, 2019 Not established Not established February 07, 2019 Not established Not established No. 325 326 327 328 329 330 331 332 333 334 335 File No./ Court of Law 2858/85/2018 – SIBIU County Court of Law – 2856/85/2018 SIBIU County Court of Law 2880/85/2018 – SIBIU County Court of Law 2854/85/2018 – SIBIU County Court of Law 2878/85/2018 – SIBIU County Court of Law – 2883/85/2018 SIBIU County Court of Law 27936/85/2018 – SIBIU County Court of Law 2801/85/2018 – SIBIU County Court of Law 2798/85/2018 – SIBIU County Court of Law – 2752/85/2018 SIBIU County Court of Law 2737/85/2018 – SIBIU County Court of Law Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor Case Plaintiff Defendant Amount (RON) Description - 3,610 Recovery of regular overtime pay. - 5,095 Recovery of regular overtime pay. - 3,539 Recovery of regular overtime pay. ROMGAZ plaintiff Ioan Baciu defendant ROMGAZ plaintiff Bogorin Lucian defendant ROMGAZ plaintiff Calin Constantin defendant ROMGAZ plaintiff Campean Gheorghe - defendant 6,108 Recovery of regular overtime pay. ROMGAZ plaintiff Chelaru Viorel defendant - 5,189 Recovery of regular overtime pay. ROMGAZ plaintiff Chiriac Ovidiu Daniel - defendant 13, 204 Recovery of regular overtime pay. ROMGAZ plaintiff Cotop Cornel defendant ROMGAZ plaintiff Craciun Crucian defendant - 7,099 Recovery of regular overtime pay. - 6,275 Recovery of regular overtime pay. ROMGAZ plaintiff Dangulea Alin - defendant Vichente 2,773 Recovery of regular overtime pay. ROMGAZ plaintiff Dascalescu Andrei - defendant 3,274 Recovery of regular overtime pay. ROMGAZ plaintiff David Gerard Marian - defendant 3,156 Recovery of regular overtime pay. 56 Next procedural deadline February 21, 2019 Not established Not established Not established Not established Not established Not established Not established Not established Not established February 21, 2019 Case Plaintiff Defendant No. 336 337 338 339 340 341 342 343 344 345 346 File No./ Court of Law 2738/85/2018 – SIBIU County Court of Law – 2750/85/2018 SIBIU County Court of Law 2748/85/2018 – SIBIU County Court of Law 2749/85/2018 – SIBIU County Court of Law 2745/85/2018 – SIBIU County Court of Law – 2708/85/2018 SIBIU County Court of Law 2978/85/2018 – SIBIU County Court of Law 2700/85/2018 – SIBIU County Court of Law 2839/85/2018 – SIBIU County Court of Law 2821/85/2018 – SIBIU County Court of Law – 2912/85/2018 SIBIU County Court of Law Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor SNGN – SA creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor ROMGAZ plaintiff DOP Nicolae defendant ROMGAZ plaintiff Farkas Karol defendant ROMGAZ plaintiff Florea Mircea defendant ROMGAZ plaintiff Gaban Rodica defendant Amount (RON) Description - 14,815 Recovery of regular overtime pay. - 3.529 Recovery of regular overtime pay. - 15,852 Recovery of regular overtime pay. - 7,948 Recovery of regular overtime pay. ROMGAZ plaintiff Gherman Nicolae - defendant 12,950 Recovery of regular overtime pay. ROMGAZ plaintiff Ghizasan Cornel - defendant 2,617 Recovery of regular overtime pay. ROMGAZ plaintiff Ionascu Titu defendant ROMGAZ plaintiff Ionescu Virgil defendant ROMGAZ plaintiff Mancas Mihai defendant ROMGAZ plaintiff Marcu Costel defendant ROMGAZ plaintiff Marcu Florin defendant - 12,220 Recovery of regular overtime pay. - 4,112 Recovery of regular overtime pay. - 17,036 Recovery of regular overtime pay. - 6,061 Recovery of regular overtime pay. - 7,859 Recovery of regular overtime pay. 57 Next procedural deadline February 18, 2019 Not established February 18, 2019 Not established February 7, 2019 February 21, 2019 February 7, 2019 February 7, 2019 Not established February 7, 2019 March 2019 4, Case Plaintiff Defendant ROMGAZ plaintiff Marcu Petre defendant Amount (RON) Description - 17,639 Recovery of regular overtime pay. No. 347 348 349 350 351 352 353 354 355 356 357 File No./ Court of Law 2877/85/2018 – SIBIU County Court of Law 2922/85/2018 – SIBIU County Court of Law – 2789/85/2018 SIBIU County Court of Law 2797/85/2018 – SIBIU County Court of Law 2802/85/2018 – SIBIU County Court of Law 2803/85/2018 – SIBIU County Court of Law – 2792/85/2018 SIBIU County Court of Law 2791/85/2018 – SIBIU County Court of Law 2788/85/2018 – SIBIU County Court of Law 2855/85/2018 – SIBIU County Court of Law 2852/85/2018 – SIBIU County Court of Law Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor ROMGAZ plaintiff Marginean Gheorghe Florin - defendant ROMGAZ plaintiff Marginean Mihai - defendant Ovidiu 16,154 Recovery of regular overtime pay. 12,980 Recovery of regular overtime pay. ROMGAZ plaintiff Marin defendant Mircea ROMGAZ plaintiff Mate Levente defendant ROMGAZ plaintiff Ioan Matei defendant ROMGAZ plaintiff Migea Vasile defendant - 12,867 Recovery of regular overtime pay. - 2,809 Recovery of regular overtime pay. - 5,557 Recovery of regular overtime pay. - 6,557 Recovery of regular overtime pay. ROMGAZ plaintiff Moldovan Nicolae - defendant 3,618 Recovery of regular overtime pay. ROMGAZ plaintiff Moldovan Vasile defendant - 4,051 Recovery of regular overtime pay. ROMGAZ plaintiff Oaida Marcel defendant ROMGAZ plaintiff Ioan Onit defendant - 4,151 Recovery of regular overtime pay. - 3,752 Recovery of regular overtime pay. 58 Next procedural deadline Not established Not established Not established Not established February 21, 2019 February 02, 2019 Not established Not established Not established Not established Not established No. 358 359 360 361 362 363 364 365 366 367 368 File No./ Court of Law 2882/85/2018 – SIBIU County Court of Law – 2704/85/2018 SIBIU County Court of Law 2706/85/2018 – SIBIU County Court of Law 2666/85/2018 – SIBIU County Court of Law 2707/85/2018 – SIBIU County Court of Law 2701/85/2018 – SIBIU County Court of Law 2672/85/2018 – SIBIU County Court of Law – 2939/85/2018 SIBIU County Court of Law 2703/85/2018 – SIBIU County Court of Law 2702/85/2018 – SIBIU County Court of Law 2753/85/2018 – SIBIU County Court of Law Case Plaintiff Defendant Amount (RON) Description Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor SNGN – SA creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor SNGN SA – creditor SNGN SA – creditor ROMGAZ plaintiff Pacurariu Horia defendant - 20,916 Recovery of regular overtime pay. ROMGAZ plaintiff Pepene Laurentiu - defendant 4,534 Recovery of regular overtime pay. ROMGAZ plaintiff Perjaru Victor defendant ROMGAZ plaintiff Vasile Pop defendant ROMGAZ plaintiff Popa Simona defendant - 14,477 Recovery of regular overtime pay. - 3,709 Recovery of regular overtime pay. - 12,196 Recovery of regular overtime pay. ROMGAZ plaintiff Portik Szabo Domokos - defendant 6,096 Recovery of regular overtime pay. ROMGAZ plaintiff Posta Ladislau Adalbert - defendant 13,583 Recovery of regular overtime pay. ROMGAZ plaintiff Precup Ovidiu Emil - defendant 3,705 Recovery of regular overtime pay. ROMGAZ plaintiff Roman Dumitrescu Argentina - defendant 4,421 Recovery of regular overtime pay. ROMGAZ plaintiff Rusu defendant Vasile ROMGAZ plaintiff Scumpu Maria defendant - 12,872 Recovery of regular overtime pay. - 5,012 Recovery of regular overtime pay. 59 Next procedural deadline February 7, 2019 Not established February 07, 2019 February 21, 2019 Not established February 21, 2019 Not established Not established Not established Not established February 07, 2019 No. 369 370 371 372 373 374 375 376 377 378 File No./ Court of Law 2705/85/2018 – SIBIU County Court of Law – 2838/85/2018 SIBIU County Court of Law – 2837/85/2018 SIBIU County Court of Law 2835/85/2018 – SIBIU County Court of Law 2790/85/2018 – SIBIU County Court of Law 2787/85/2018 – SIBIU County Court of Law 2876/85/2018 – SIBIU County Court of Law 2873/85/2018 – SIBIU County Court of Law – 2874/85/2018 SIBIU County Court of Law 2853/85/2018 – SIBIU County Court of Law Case Plaintiff Defendant Amount (RON) Description Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor ROMGAZ plaintiff Scurtu Constantin - defendant 3,110 Recovery of regular overtime pay. ROMGAZ plaintiff Stancicu Sorin defendant - 17,238 Recovery of regular overtime pay. ROMGAZ plaintiff Stanciu Gheorghe defendant Bogdan - ROMGAZ plaintiff Stanciu Daniel - defendant Eduard 21,106 Recovery of regular overtime pay. 17,346 Recovery of regular overtime pay. ROMGAZ plaintiff Stancu Daniela - defendant Sanda 20,683 Recovery of regular overtime pay. ROMGAZ plaintiff Sutoiu Florinel defendant ROMGAZ plaintiff Szabo Csaba defendant - 38,167 Recovery of regular overtime pay. - 3,466 Recovery of regular overtime pay. ROMGAZ plaintiff Szekely Iosif Tihamer - defendant 2,150 Recovery of regular overtime pay. ROMGAZ plaintiff Tabacar Nistor defendant ROMGAZ plaintiff Tataru Vasile defendant - 4,126 Recovery of regular overtime pay. - 4,126 Recovery of regular overtime pay. 60 Next procedural deadline Not established Not established Not established Not established Not established February 07, 2019 Not established February 7, 2019 Not established 05, March 2019 No. 379 380 381 382 383 384 385 File No./ Court of Law 2879/85/2018 – SIBIU County Court of Law – 2857/85/2018 SIBIU County Court of Law – 2872/85/2018 SIBIU County Court of Law 2859/85/2018 – SIBIU County Court of Law 2875/85/2018 – SIBIU County Court of Law 2954/85/2018 – SIBIU County Court of Law 2778/85/2018 – SIBIU County Court of Law Case Plaintiff Defendant Amount (RON) Description Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability Patrimonial liability SNGN SA – creditor SNGN SA – creditor SNGN SA – creditor SNGN – SA creditor SNGN SA – creditor ROMGAZ plaintiff Trambitas Dan - defendant Grigore 5,256 Recovery of regular overtime pay. ROMGAZ plaintiff Tudoran Gheroghe Cristian - defendant 14,177 Recovery of regular overtime pay. ROMGAZ plaintiff Tuna Danil defendant ROMGAZ plaintiff Udvari defendant Iosif ROMGAZ plaintiff Velicea Nicolae defendant - 3,396 Recovery of regular overtime pay. - 2,878 Recovery of regular overtime pay. - 4,548 Recovery of regular overtime pay. Sindicatul Liber Romgaz Medias – plaintiff SNGN SA – creditor ROMGAZ plaintiff SNGN Romgaz S.A. - defendant Virgil Marius Metea - defendant 461,380 Motion to suspend GSM Resolution no. 8/2018. Motion dismissed. Right to file appeal within 5 days from the communication of the ruling. Appeal was filed. Undue payment of the variable allowance, the second subcomponent for 2013-2016. The first trial date was not established. In the summons Romgaz raised the challenge of joinder with case file no.1596/85/2018 Next procedural deadline Not established Not established Not established Not established Not established Not established Not established 61 

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