The five-year exploration program is expected to help reduce the country’s reliance on Russian oil and gas imports.
Shell will invest €18.6m ($21m) for the exploration works at the block, which covers 7,000km2, and will pay €4.9m bonus to the state upon signing the contract scheduled by the end of October
The prospecting and exploration program involves 2-D and 3-D seismic studies, as well as measures for the protection of the environment, the human health and the cultural values.
Bulgaria Energy Minister Temenuzhka Petkova said: "This is a very serious success for us and one of the most important steps towards diversifying our gas supplies."
The selection follows a tender floated by the government in December 2014 for natural gas and oil prospecting and exploration in Silistar Block 1-14 and Teres Block 1-22 in Black Sea, in an effort to diversify its energy sources.
In August 2015, a Total-led consortium announced its plan to commence five-year oil and gas drilling program at the Han Asparuh 1-21 block in Bulgaria’s Black Sea coast in early 2016.
Total has 40% interest in the block, while OMV and Repsol each own 30%. The block is estimated to produce up to 84 billion cubic meters of gas.
The tenders are a part of the country’s plan to ensure energy security and independence.
Image: Bulgaria plans to reduce its reliance on Russian oil and gas imports. Photo: courtesy of suwatpo/ FreeDigitalPhotos.net.
