Bulgaria, Shell signs Black Sea energy agreement

Shell has signed a contract with the Bulgarian government granting it rights to explore oil and gas in the Black Sea, as Sofia seeks to diversify energy sources and reduce reliance on imports.

The agreement covers Block 1-26 Khan Tervel, an offshore area spanning approximately 4,000 square kilometres within Bulgaria’s exclusive economic zone, according to the BTA state news agency.

“With this contract, we are taking a significant step toward uncovering the deep Black Sea’s potential for future gas supplies,” said Energy Minister Zhecho Stankov during the signing ceremony in Sofia.

He said gas extracted from the block would likely be Bulgaria’s most affordable source, as it would avoid up to 30% in transit fees and generate concession revenues of a similar proportion.

Shell will begin by conducting 3D seismic surveys and environmental assessments, followed by potential exploratory drilling based on initial results. The company has yet to issue a public statement.

Eugene Okpere, Shell’s executive vice president for exploration, strategy and portfolio, said the company is committed to bringing its technical expertise to the project.

“We believe we can bring the best of our technology and our expertise and a track record to unlock the potential offshore Black Sea in Bulgaria,” Okpere said.

Bulgaria, a European Union member, previously depended almost entirely on Russian gas until 2022. It is now pursuing alternative supplies to enhance energy resilience amid ongoing regional instability.

The Shell agreement follows a similar deal in March with OMV Offshore Bulgaria and NewMed Energy Balkan for exploration in the neighbouring Block 1-21 Khan Asparuh.