Under the five-year contract, Shell will undertake deepwater exploration program at the 1-14 Silistar block, which covers an area of 7,000km2.
Work under the contract is planned to commence in September. Shell plans to invest €18.6m ($20.5m) in seismic surveys.
Reuters cited Shell International Exploration and Production regional director Eileen Wilkinson as saying: "The license that we have been awarded today allows us to evaluate the potential for oil and gas in offshore Bulgaria.
"This process can be quite a long process and with much uncertainty."
The contract, which has an option for two extensions of two years each, is a part of Bulgaria’s effort to reduce its dependence on Russian natural gas.
Wilkinson was quoted by Bloomberg as saying: "Before we start exploration activities, we’ll receive all the regulatory and environmental approvals required."
Separately, French oil company Total and its partners Austria-based OMV and Spain’s Repsol are planning to commence oil and gas exploration drilling in exploration block, 1-21 Khan Asparuh, located off the Bulgarian coast in the Black Sea, by June this year.
