site.btaState-Owned Energy Holding to Participate in Oil and Natgas Prospecting in Black Sea Block 1-21 Khan Asparuh

The outgoing government Wednesday approved the participation of the Bulgarian Energy Holding (BEH) in the project for offshore exploration and prospecting of oil and natural gas in Block 1-21 Khan Asparuh in the Black Sea.

Outgoing Energy Minister Zhecho Stankov said the decision was "most important", "significant and long-awaited news for Bulgaria’s energy sector".

Through BEH, Bulgaria will join the rights for exploration and prospecting in the deep waters of the Black Sea together with OMV and NewMed Energy. For the first time in Bulgaria’s modern history, the State will not benefit solely from concession fees - which for oil and gas can reach up to 30% of production - but will actively participate by holding a stake in the exploration and prospecting rights. The state’s participation through BEH will amount to 10%, he said.

This percentage was determined following the commissioning of detailed analyses by the University of National and World Economy and the Mining and Geology University, the work of a dedicated task force, and negotiations with OMV and NewMed. This represents a conservative approach under which the state enters the project through concrete steps not merely as an observer, but also as an investor, Stankov added.