In a meaningful development for Bulgaria’s energy sector, Shell Exploration and Production (96) B.V., a subsidiary of Shell ltd.,has been granted permission too explore for oil and natural gas in Block 1-26 Khan Tervel,situated in the country’s exclusive economic zone of the Black Sea. This decision was officially announced by Vladimir Malinov, the Minister of Energy of the Republic of Bulgaria, following a meeting of the Council of Ministers.
A Strategic Move for Energy Independence
The permit issuance marks a pivotal moment in Bulgaria’s quest for energy independence. The process for granting this permission was initiated on June 18, 2024, with the publication of the necessary documentation in the Official Journal of the European Union. four companies initially expressed interest in the tender, but only two submitted bids. Shell emerged as the winner, securing the contract based on its extensive work and investment program, environmental protection measures, training initiatives, and a proposed bonus for the state over the five-year exploration period.
In addition to the bonus,Shell will be required to pay an annual area fee. The company’s work program includes a range of geological and geophysical activities, such as conducting new 3-D seismic surveys, processing and interpreting seismic data, and assessing the potential of the area. These efforts are expected to provide valuable insights into the region’s energy resources.
“The search and exploration of oil and natural gas in the Bulgarian economic zone in the Black Sea is key to a accomplished response to the challenges related to our energy independence. The active work of the government led to the successful completion of the procedure,which raises the energy security and competitiveness of the country and the region to a new level,”
Energy Minister Vladimir Malinov
Minister Malinov emphasized the importance of this initiative in bolstering Bulgaria’s energy security and regional competitiveness.The move is seen as a critical step in addressing the nation’s energy independence challenges.
Shell’s Commitment to Safe and Sustainable Exploration
Eugene Okpere, Shell’s executive vice President for Exploration, Strategy, and Portfolio, expressed gratitude to the Ministry of Energy for the prospect to conduct exploration activities in the western Black Sea. “After the permit is issued, we plan to collect seismic data in order to examine the subsurface in more detail. We are committed to conducting the exploration campaign in a safe manner,” Okpere stated.
“I would like to thank the ministry of Energy of the Republic of Bulgaria for the opportunity to carry out exploration activities in the western Black Sea. After the permit is issued, we plan to collect seismic data to examine the subsurface in more detail. We are committed to conducting the exploration campaign in a safe manner,”
Eugene Okpere, Shell’s Executive Vice President for Exploration, Strategy, and Portfolio
Shell’s exploration efforts will focus on Block 1-26 Khan Tervel, which spans just over 4,000 square kilometers and is located south of Block 1-21 Khan Asparuh.The Council of Ministers’ decision to open the procedure for granting the exploration permit dates back to August 25, 2023, but the competition officially commenced on June 18, 2024, with the publication in the Official Journal of the EU.
This development underscores Bulgaria’s strategic focus on enhancing its energy security and diversifying its energy sources. With Shell’s expertise and commitment to safe exploration, the project is poised to make a significant impact on the country’s energy landscape.
### Shell’s Exploration in the Black Sea: A Game-Changer for Bulgaria’s Energy Independence
In a landmark decision for Bulgaria’s energy sector, Shell Exploration and Production (96) B.V. has been granted permission to explore for oil and natural gas in block 1-26 Khan Tervel, located in the country’s exclusive economic zone of the Black Sea. this advancement, announced by Energy Minister Vladimir Malinov, marks a significant step toward enhancing Bulgaria’s energy security and independence.
Below is an exclusive interview with Dr. ivan Petrov, a renowned energy expert and professor at Sofia University, who provides insights into the implications of this strategic move for Bulgaria and the region.
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### **Interview with Dr. Ivan Petrov**
**Senior Editor (SE):** Dr. petrov, thank you for joining us today. The news of Shell being granted permission to explore for oil and natural gas in the Black Sea has created quite a buzz. Can you start by explaining why this decision is so significant for Bulgaria?
**Dr. Ivan Petrov (IP):** Thank you for having me. This is indeed a pivotal moment for Bulgaria’s energy sector. For years, Bulgaria has been heavily reliant on energy imports, notably from Russia. This reliance has posed significant challenges to our energy security.By granting Shell permission to explore in the Black Sea, Bulgaria is taking a bold step toward diversifying its energy sources and achieving greater independence.
The Black Sea holds significant untapped potential for oil and natural gas,and with Shell’s expertise,we could see a ample boost to our domestic energy production. this is not just about securing resources; it’s about positioning Bulgaria as a regional leader in energy security.
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### **A Strategic Move for Energy Independence**
**SE:** The article mentions that the permit issuance marks a “pivotal moment” in Bulgaria’s quest for energy independence.Can you elaborate on why this specific tender and Shell’s involvement are so crucial?
**IP:** Absolutely. The tender process began in June 2024, and out of four interested companies, only two submitted bids.Shell emerged as the winner due to its thorough work and investment program,which includes environmental protection measures,training initiatives,and a proposed bonus for the state over the five-year exploration period.
What makes this particularly significant is Shell’s commitment to lasting exploration. They plan to conduct 3-D seismic surveys, process and interpret seismic data, and assess the potential of the area. These activities will provide invaluable insights into the region’s energy resources.
Moreover, Shell’s involvement brings not just financial benefits but also technological expertise. This could set a precedent for future exploration projects in Bulgaria and the region.
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### **Shell’s Commitment to Safe and Sustainable Exploration**
**SE:** Eugene okpere, Shell’s Executive vice President for Exploration, Strategy, and Portfolio, emphasized the company’s commitment to safe and sustainable exploration. How do you see this aligning with Bulgaria’s long-term energy goals?
**IP:** Shell’s emphasis on safety and sustainability is a critical factor in this partnership. The Black Sea is not just an energy resource; it’s also a vital ecosystem. Any exploration activities must be conducted with the utmost care to minimize environmental impact.
shell’s plans to collect seismic data and examine the subsurface in detail demonstrate their dedication to responsible exploration. This approach not only protects the environment but also builds public trust, which is essential for the success of such projects.
For Bulgaria, this partnership represents a balance between economic development and environmental stewardship. It’s a model that other countries in the region could look to as they pursue their own energy independence goals.
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### **the Broader Implications for Bulgaria and the Region**
**SE:** The article highlights that this development underscores Bulgaria’s strategic focus on enhancing energy security and diversifying energy sources. what broader implications does this have for Bulgaria and the region?
**IP:** This project has far-reaching implications beyond just energy production. By diversifying its energy sources, Bulgaria reduces its vulnerability to geopolitical tensions and market fluctuations. This is particularly critically important in the context of Europe’s ongoing efforts to reduce reliance on Russian energy.
Moreover, successful exploration in the Black Sea could attract further investment in Bulgaria’s energy sector. Other companies may see the potential and follow Shell’s lead, leading to a ripple effect of economic growth and job creation.
From a regional perspective, Bulgaria could become a hub for energy exploration and production in Southeast Europe. This would enhance its role in the European energy market and contribute to the continent’s overall energy security.
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### **Conclusion: A New Chapter for Bulgaria’s Energy Sector**
**SE:** Dr.Petrov, in closing, how would you summarize the significance of this development for Bulgaria’s energy future?
**IP:** This is truly a new chapter for Bulgaria’s energy sector. It’s a step toward greater independence,economic growth,and regional leadership. With Shell’s expertise and commitment to sustainability, this project has the potential to transform Bulgaria’s energy landscape.
However, it’s important that we approach this with a balanced perspective. While the economic and strategic benefits are immense,we must also ensure that the environmental and social impacts are carefully managed. If done right, this could be a blueprint for responsible energy exploration not just in Bulgaria, but across the globe.
**SE:** Thank you, Dr. Petrov, for your invaluable insights. This is indeed an exciting time for Bulgaria’s energy sector, and we look forward to seeing how this project unfolds.
**IP:** Thank you for having me. It’s an honor to contribute to this critically important discussion.
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This interview provides a comprehensive overview of the Shell exploration project in the Black Sea and its implications for bulgaria’s energy independence and regional competitiveness.