Bulgaria has taken a significant step toward exploring its deep-sea energy potential with the signing of a contract for oil and gas exploration in Block 1-26 "Khan Tervel", BGNES reports. During the official ceremony, Energy Minister Zhecho Stankov highlighted the strategic importance of the agreement, which was signed with energy company SHELL. According to Stankov, this move will aid future gas supply diversification and enhance national energy security.

Minister Stankov emphasized that natural gas extracted from Bulgaria’s deep Black Sea territory—both onshore and offshore—would be the country’s most affordable. He attributed this to the absence of substantial transit fees, which currently account for up to 30% of the final gas price when delivered via pipeline. Additionally, he noted that future discoveries would generate concession payments to the state of up to 30%, effectively meaning that one-third of each gas molecule extracted would translate into revenue for the national budget.

The Khan Tervel block, covering over 4,000 square kilometers, is located adjacent to the Khan Asparuh block, where exploration activities are already underway. Stankov stated that investments expected from SHELL include not only financial commitments but also compliance with environmental regulations and the training of Bulgarian personnel. He added that the Ministry of Energy and other state institutions are fully cooperating with SHELL to facilitate the process and maximize its benefits for Bulgarian citizens.

A representative from SHELL expressed optimism about working in Bulgaria’s Black Sea area, pledging to carry out activities safely and in accordance with best practices. The company plans to begin with 3D seismic surveys to assess the presence of gas reserves. This initial stage will help determine whether commercial quantities of natural gas exist, which could eventually support the diversification of Bulgaria’s energy sources. SHELL emphasized the strong cooperation it has with the Bulgarian government and confirmed readiness to begin work immediately.

Prime Minister Rosen Zhelyazkov also underlined the political and strategic significance of the agreement. He noted that Bulgaria is now among the Black Sea countries actively seeking to utilize the untapped natural resources on the seabed. Zhelyazkov hailed the participation of a major international player like SHELL as a clear signal of confidence in Bulgaria’s energy potential. The exploration phase will be supported by cutting-edge technology, including supercomputing systems and, eventually, artificial intelligence to analyze geological data.

The Prime Minister further stressed that the project showcases Bulgaria’s political stability and the trust it enjoys among foreign investors. He expressed hope that successful exploration efforts and the support of local communities would contribute to securing the country’s energy independence. Zhelyazkov reiterated that the gas sourced from the Black Sea would represent a significantly cheaper and more secure energy option for the nation.

Source: BGNES