Sofia: Bulgaria has entered into an agreement with international energy company Shell for oil and gas exploration in the Black Sea, as reported by local media on Tuesday. According to the terms of the agreement, Shell will conduct surveys in Block 1-26 Khan Tervel, which spans approximately 4,000 square kilometers of Bulgaria's exclusive economic zone in the Black Sea, the state-run BTA news agency reported.

According to Anadolu Agency, Energy Minister Zhecho Stankov highlighted the significance of this agreement at the signing ceremony in Sofia. Stankov emphasized that the initiative marks an important step for Bulgaria in harnessing the potential gas supplies from the deep Black Sea. He noted that this exploration could lead to the availability of cost-effective gas for Bulgaria, as it would not entail additional fees. Furthermore, the country stands to benefit from concession payments associated with the discoveries.

Stankov elaborated that any gas discovered in the onshore and offshore territories of the deep Black Sea is expected to be the least expensive for Bulgaria due to the absence of transit fees, which can reach up to 30%. Additionally, future discoveries within the territory could yield up to 30% in concession payments for the country.

In a related development, Bulgaria signed a document in March with OMV Offshore Bulgaria and NewMed Energy Balkan to continue exploration activities in Block 1-21 Khan Asparuh, which is also situated in Bulgaria's Black Sea offshore region.