Shell Exploration and Production, a subsidiary of Shell, is set to begin exploring for oil and natural gas in Block 1-26 Khan Tervel, located within Bulgaria’s exclusive economic zone in the Black Sea, pending the granting of a permit. The announcement was made by Bulgaria’s Minister of Energy, Vladimir Malinov. The process for awarding the exploration permit officially began on June 18, 2024, when the relevant documentation was published in the Official Journal of the European Union. Four companies purchased the tender documents, and two submitted bids. Shell was chosen based on its proposed work and investment program, commitment to environmental protection, training initiatives and a signature bonus offered to the state for the five-year exploration period. Additionally, Shell will pay an annual area fee.
Shell’s exploration plan includes a wide range of geological and geophysical activities, such as conducting new 3D seismic surveys, processing and interpreting seismic data, and evaluating the area’s potential. Minister Malinov emphasized the importance of this exploration for Bulgaria’s energy independence, noting, “The government’s active efforts have successfully concluded this procedure, advancing the country and the region’s energy security and competitiveness to a new level.”
Eugene Okpere, Shell’s Executive Vice President for Exploration, Strategy & Portfolio, expressed appreciation for the opportunity to explore the Western Black Sea. He said, “Following the permit award, we plan to acquire seismic data to better understand the subsurface. Our commitment is to execute this exploration campaign safely.”
Block 1-26 Khan Tervel spans just over 4,000 square kilometers and is located south of Block 1-21 Khan Asparuh. The procedure to grant the exploration permit was first initiated by the Council of Ministers in August 2023, with the formal competition beginning in June 2024.
