Energy Minister Zhecho Stankov and Eugene Okpere, Executive Vice President Exploration, Strategy & Portfolio of Shell, signed on Tuesday a contract for oil and gas exploration in Bulgaria’s exclusive economic zone in the Black Sea, on behalf of Shell Exploration and Production. The signing ceremony took place at the Council of Ministers building, in the presence of Prime Minister Rosen Zhelyazkov.

The upcoming surveys will span Block 1-26 Khan Tervel, covering approximately 4,000 sq. km.

Stankov said the agreement is extremely important. “With its signing, we are taking a significant step toward uncovering the deep Black Sea’s potential for future gas supplies,” he said. This is expected to be “the cheapest gas” Bulgaria will use, as it would not include additional fees, and the country would also earn concession payments. 

Prime Minister Zhelyazkov noted that the project holds “great political significance,” as it positions Bulgaria among the region’s active players exploring the uncharted potential of the Black Sea basin. Developing the country’s own deposits, he said, carries “enormous potential,” while acknowledging the time needed to see tangible results.

In March, Stankov signed a document with OMV Offshore Bulgaria and NewMed Energy Balkan for continued exploration in Block 1-21 Khan Asparuh, also located in Bulgaria’s Black Sea offshore area.