Shell to Explore 7,000 km2 area off Bulgaria

Royal Dutch Shell was reportedly selected by Bulgaria to explore a 7,000 square km area of its Black Sea coast, Energy Minister Temenuzhka Petkova said on Tuesday, adding that the parties are expected to sign a contract in October. 

"This is a very serious success for us and one of the most important steps towards diversifying our gas supplies," Petkova explained, as reported by Reuters. 

Several Bulgarian newspapers reported the news, focusing on the role of offshore riches to increase energy security and decrease dependence on Russian gas.

‘The exploration activities at Silistar are part of the government’s efforts to increase domestic production, thereby guaranteeing energy security and independence’ reads Novite, Sofia News Agency. 

The Anglo-Dutch company was the only bidder for the five-year exploration permit at Silistar Block 1-14, while Sofia did not register any interest for the smaller offshore block Teres.  

According to Reuters, Shell committed to investing18.6 million euros ($21 million) in seismic surveys of the block. Silistar is near to a block in Romanian waters where Austria’s OMV has said it could produce up to 84 billion of cubic metres of gas.

Sofia’s hopes are related to Shell’s experience in deep-sea exploration and production. 

After saying it pulled out of operations in the Arctic offshore Alaska on Monday, Shell underlined in the last hours its commitment to deep-water exploration, re-tweeting an article about its ‘superlift’ designed for its deepwater Malikai project. 

Malikai oilfield is off the coasts of Malaysia, in water depths of up to 500 metres.