site.btaBulgarian Energy Holding Joins Black Sea Oil and Gas Exploration

The Council of Ministers Wednesday signed an agreement allowing the State to participate via Bulgarian Energy Holding (BEH) in oil and natural gas exploration in the Khan Asparuh Block in the Black Sea. The signing took place in the presence of outgoing Prime Minister Rosen Zhelyazkov and outgoing Energy Minister Zhecho Stankov.

Under the agreement between BEH, OMV Offshore Bulgaria and NewMed Energy Balkan, BEH will acquire a 10% stake in the exploration rights for Block 1-21 Khan Asparuh, which is located in Bulgaria’s exclusive economic zone in the Black Sea.

Speaking at the ceremony, Energy Minister Stankov said the move marks the first time in modern Bulgarian history that a Bulgarian company will take an active role in oil and gas exploration in the country. He explained that, in addition to concession fees of up to 30% in the event of a discovery, BEH will also be able to generate revenues through its own 10% investment in the project.

Stankov noted that domestically produced gas would be the most affordable option, describing BEH’s entry into the consortium at this stage as highly strategic, as it involves investments in the next two drilling operations. He added that the project creates prospects for security of supply, energy independence, and additional budget revenues that would benefit all Bulgarian citizens.

The outgoing government approved BEH’s participation in the project at its meeting on January 14. Under the decision, BEH was authorized to acquire 5% each of the rights and obligations held by OMV Offshore Bulgaria and NewMed Energy Balkan. Following the partial transfer, the two companies will each hold 45% of the exploration rights, while BEH will hold 10%.