“In July 2003 Bulgaria will probably start using natural gas extracted from the Galata gasfield, “ Gatti al-Djebouri, Vice President of the State Energy and Energy Resources Agency said. Galata gasfield is located on the Black Sea shelf, 23 km away from the country's northern coastline. On November 1, 2001 natural gas distributor Bulgargaz signed agreements with Petreco Bulgaria EOOD and British-based Petreco SARL on gas purchase and transportation. This is the first agreement on natural gas transportation to be concluded in accordance with the Energy and Energy Efficiency Act. The price is not mentioned in the agreement. It is to be fixed after the State Energy Regulation Commission adopts the necessary ordinance. "The Galata gasfield will cover 10% of the domestic demand for this fuel," Nikolay Vassilev, Deputy Prime Minister and Economy Minister, said. According to Bulgargaz Executive Director Kiril Gegov, gas extracted from Galata will be purchased at preferential prices, lower than the prices of external suppliers. Under the agreement, Bulgarian consumers will be able to commission supplies directly from the extracting company. According to Gegov this would break the monopoly of Bulgargaz. Petreco SARL Managing Director David Archer handed Minister Vassilev a letter of intent to build a gas platform at the Varna Shipyard, to be used at the Galata gasfield. The project will ensure at least USD 12 M revenues for the shipyard. The development of the Galata deposit will be financed with USD 65 M and will be carried out primarily by Bulgarian companies and experts. Five hundred jobs are to be created in the process. About 100 workers will be employed when regular extraction begins.