Fossil Energy – Bulgaria
“The cheapest gas is our gas,” energy minister Stankov says as Bulgaria acquires a 10% stake in the Black Sea consortium exploring for oil and natural gas in the Han Asparuh offshore block.
The move gives the state a direct financial interest in a potentially high-yield project that officials say could generate substantial revenues for the budget if commercial discoveries are made, while also reducing Bulgaria’s reliance on imported energy.
State-owned Bulgarian Energy Holding (BEH) has joined the venture alongside OMV Offshore Bulgaria, a unit of OMV Petrom, and Israel’s NewMed Energy Balkan Limited. Under the new structure, OMV Petrom remains operator with a 45% stake, NewMed Energy holds 45%, and BEH owns the remaining 10%.
BEH will pay its proportional share of costs related to drilling preparations and operations, OMV Petrom said in a statement.
The agreement was signed at the Council of Ministers in Sofia in the presence of outgoing Prime Minister Rosen Zhelyazkov and outgoing Energy Minister Zhecho Stankov, after the government approved BEH’s participation earlier this month.
“This is the first time in modern Bulgarian history that the state will participate directly as an investor in offshore oil and gas exploration,” the government press office said, describing the project as key to diversifying energy sources and strengthening energy security.
