Shell Exploration and Production has signed an agreement with Bulgaria to explore oil and natural gas in the Black Sea deepwaters.
The agreement will allow Bulgaria to reduce its dependency on Russian natural gas.
Go deeper with GlobalData
In September 2015, the company was elected the holder of permit for deepwater prospecting and exploration of oil and natural gas in Block 1-14 Silistar that covers 7,000km².
Bulgaria Energy Minister Temenuzhka Petkova said that Shell will invest €18.6m ($20.5m) to perform seismic surveys.
The proposed working programme includes 2D and 3D seismic studies, as well as measures for protecting the environment.
See Also:
Petkova said that exploration of Silistar block is part of the increase in indigenous yield that represents a primary condition to ensure energy security and independence.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataReuters quoted Shell International Exploration and Production regional director Eileen Wilkinson saying: "The licence 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."
Total, OMV and Repsol are acting as joint venture partners in another exploration block ‘Khan Asparuh’ in the Black Sea, Bloomberg reported.
Bulgaria spends around $1bn per year on import of gas from Russia, and aims to diversify supplies after they were cut for two weeks in 2009 following a dispute regarding prices between Ukraine and Russia.
