French Total Pays EUR 48 M for Oil, Gas Exploration in Bulgaria

In August, the Bulgarian government approved the issuance of a permit for oil and gas prospecting and exploration at the Khan Asparuh 1-21 Block to Total E&P Bulgaria B.V. Photo by Sofia Photo AgencyPhoto by Sofia Photo Agency

Bulgaria has already received EUR 48 M from French Total, which will be drilling for oil and gas off Bulgaria's Black Sea coast, according to Delyan Dobrev, Minister of Energy, Economy and Tourism.

Dobrev announced Friday that the money would be distributed by Finance Minister Simeon Djankov.

"The consortium of Total, OMV and Repsol transferred the bonus of EUR 48 M last week on Friday. The sum is already available in the account of the Ministry of Economy, Energy and Tourism and will be redirected into the state budget," Dobrev said, as cited by the Bulgarian National Radio (BNR).

Asked what the money would go to, he assured that the Finance Ministry would distribute the sum according to the state's needs, adding that the financial resources would certainly come in very handy.

On August 29, Bulgaria signed a five-year contract with the consortium of Total, OMV and Repsol for deepwater gas drilling in Block 1-12 Khan Asparuh.

Dobrev went on to say what was on schedule for the Teres Block.

"It is next to the Khan Asparuh Block and spans an area from the southern border of Khan Asparuh to the Bulgarian-Turkish border. In one month's time, we shall submit a proposal for starting the competition with the Council of Ministers, after which a procedure for selecting a company to conduct the exploration activities will take place and if oil and gas reserves are discovered, production will start," Bulgaria's Energy Minister informed.

"This was the last white spot on our sea territory alongside the Sveta Marina Block, which is located to the north," Dobrev added.

It was announced Thursday that Bulgaria would call a public tender for deepwater oil and gas exploration in Block Teres within a month.

According to preliminary reports of Bulgarian Trud daily, the public procurement procedure is to be approved by the Council of Ministers and then published in the Official EU Gazette for public discussion.

Turkey announced Tuesday it had discovered near the said Block Teres large deposits of natural gas, giving Bulgaria hopes that its territorial waters also contain such resources.

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