Shell to Explore for Oil, Gas in Bulgaria's Offshore Silistar Block

Dutch-based Shell Exploration and Production was chosen to explore for oil and gas in Bulgaria's 1-14 Silistar block in the Black Sea, the country's energy ministry said on Tuesday.Shell will invest18.6 million euro ($20.98 million) in exploration works, plus a 4.9 million euro bonus it will pay the state upon signing the contract, the ministry said in a press release.

The contract is expected to be signed one month after the government approves it, the ministry added.

The Silistar block covers an area of 6,893 sq km.

The energy's ministry decision comes after in April it opened a tender for oil and gas exploration in two Black Sea blocks - 1-14 Silistar and 1-22 Teres. The oil and gas exploration permits will have a five-year term, the energy ministry said at the time, adding that it expects the tenders to attract the interest of industry majors, considering thatFrance's Total, Austria's OMV and Spain's Repsol are already exploring the nearby Han Asparuh block.

Earlier on Tuesday Sofia-based business daily Capital Daily reported, quoting energy minister Temenuzhka Petkova, that Shell was the only candidate to file a bid in the tender for the 1-14 Silistar block and that no bids were filed for the 1-22 Teres block.

Source: SeeNews