Bulgaria to Grant 6-Year Concession for Kavarna Iztok Gas FieldEnergy | July 31, 2012, Tuesday // 18:04| views
Photo by Sofia Photo Agency
The Bulgarian government will grant British Melrose Resources a 6-year concession for natural gas extraction at the Kavarna Iztok field, according to the Council Of Ministers' press office.
The decision is to be taken at a Cabinet meeting on Wednesday.
The gas field is located in Bulgaria's Black Sea continental shelf and the exclusive economic zone and has a total area of 3.97 square kilometers.
According to preliminary estimates, the move is expected to bring concession fee revenues of around USD 1.1 M per year.
The Kavarna Iztok field will become the third field developed by Melrose Resources in Bulgarian Black Sea waters.
The company is already extracting natural gas from the Kaliakra and Kavarna fields, the production covering around 15% of the country's natural gas consumption.
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