Council of Ministers of Bulgaria decided to launch a competition for prospecting and exploration of oil and natural gas in two zones situated in the continental shelf and the exclusive economic zone of Bulgaria in the Black Sea: blocks Silistar and Teres. Potential investors will be permitted to explore for a period five years.
For the block Silistar, which has an area of 6893 square kilometers, the annual fee is 275,720 levs, the terms of the competition say. Fees for the second block, Teres, with an area of 161,280 square kilometers, is 161,280 levs per year.
Today's decision of the government to study the deep Black Sea shelf is in line with government policy to ensure the diversification of the country’s energy sources.
From 2002 up until 2007 Vintage Petroleum International Inc. conducted limited studies of both areas in accordance with its then issued permit. In 2013 another attempt was made to grant authorization for prospecting and exploration in the block Teres but bids from potential investors were not submitted and the contest was terminated.
To ensure the energy independence of the country is one of the most important priorities of the government programme in the energy sector. This independence can be achieved primarily through exploration and exploitation of its own natural gas fields and oil.
This is not the first government decision to concession the two zones.
Former Cabinet Oresharski cancelled the competition for Teres in July 2013 on the ground that there were no candidates. In the previous government of Mr. Borissov, which started the procedure the hopes were that a successful candidate would invest at least 1 billion euros in Bulgarian economy. Back then it was said that international companies would be interested.
