The Energy Commission tasked Minister Radev with negotiating the option for BEH to take a 20% stake in the consortium for the "Khan Asparuh" Block

The Parliamentary Committee on Energy of the National Assembly, after debates and corrections, accepted the proposal of a group of deputies that the Minister of Energy conduct negotiations so that BEH (Bulgarian Energy Holding) acquires 20% of the consortium for the exploration of the Black Sea gas field ("Block 1-21 Khan Asparuh"). The decision comes after hearing representatives of the consortium "Total E&P Bulgaria" B.V. and OMV Petrom at a previous meeting of the energy commission, at which the possibility of positive results regarding gas deposits was revealed. The introduction of the chairman of the energy commission, Delyan Dobrev, brought optimism about the decision taken at the very beginning. Referring to the hearing of representatives of the consortium from the previous meeting of the commission, he indicated the possibility of discovering a deposit of blue fuel up to 510 billion cubic meters. A little later, the Minister of Energy Rumen Radev, who attended the meeting and was subsequently heard on other topics, reminded that this was still only a presentation.

"We find it extremely advantageous for Bulgaria to be included in the final rights in the exploration activities", said the chairman of the commission, Delyan Dobre. He referred to the seismic presented to the deputies earlier, by "Total E&P Bulgaria" B.V. and OMV Petrom. According to her, between 210 and 510 billion cubic meters of gas are expected to be found in the Bulgarian waters of the "Khan Asparuh" block.

Radoslav Ribarski from "PP-DB", for his part, asked how the stated share of 20% participation of BEH in the respective consortium was arrived at and what the holding is expected to invest.

Delyan Dobrev, for his part, justified himself with the fact that the estimated participation of "35% would represent too great a risk for the state", as well as too great an amount to be invested.

BSP MP Dragomir Stoynev, for his part, commented that "we are again putting the cart before the horse", referring to previous decisions of the Energy Commission. "They were not reactors..." he commented and asked to hear the opinion of the Minister of Energy Rumen Radev first. "For me, the normal logic is that he should have held the talks, come up with concrete solutions on the matter and ask for our support. My request is for the minister to take a stand on this issue, to say what his intention is - did he hold talks, did he consult with experts, is BEH ready to enter this study," he asked.

In response to the question, Energy Minister Radev explained that it was a presentation.

"We look at this project as a potential one. We are still a party to a relationship in which we have given the relevant consortium the opportunity to start a study procedure. So if you reach a decision to assign a mandate for a more serious study of a potential partnership, which is something very different, only then can we proceed to a similar type of relationship with them. Even the assignment of a similar type of mandate is not right to expect as a necessary fulfillment of a partnership," said Rumen Radev.

At the same time, he explained that the Ministry of Energy does not have the authority to go into the details of the preparation of a future geological discovery. "An advantage of potential participation on the part of the state is purely organizational. We do not see our participation as an attempt to extend a certain concession in a roundabout way, because I suppose there are such doubts," he said.

Meanwhile, Dragomir Stoynev stated that he saw no need to give a mandate to the Energy Ministry, and in practice the BSP refused to vote. In the framework of the discussion, the question of the withdrawal of the participants from "Repsol" was also raised.

In the reasons for the draft decision, it is said that by a decision of the Council of Ministers (CoM) dated July 26, 2012, the consortium between "Total E&P Bulgaria" B.V. and OMV Petrom to search for and explore underground oil and natural gas resources on the area of "Block 1-21 Khan Asparuh" with an initial size of 14,220 sq.m. in the deep-water part of the exclusive economic zone of Bulgaria in the Black Sea within a period of 5 years. The contract for this was concluded on August 29 and entered into force on September 14 of the same year. To date, based on a decision of the Court of Justice, eight additional agreements have been concluded with it.

With a decision of the Court of Justice of February 21, 2013, the company received permission for the partial transfer of its rights and obligations. It gives 30 percent of them to two limited liability companies established and existing under the laws of Austria ("OMV Offshore Bulgaria" GmbH) and the Netherlands ("Repsol Bulgaria" B.V.). On June 16, 2020, the Court of Justice allowed the Dutch company to transfer its share proportionally to the holders - the Austrian company and "Total Total E&P Bulgaria" B.V. Last year on February 3, the permit term was extended by two years, starting from May 15, and for the time of voting on the overall project for the extension period, the permit term was suspended, with which the two-year term practically runs from November 18 last year.

According to the importers, with this extension, the possibilities for a new extension of the permit term under the terms and conditions of the Law on Underground Resources have been exhausted. The only possibility envisaged is that if the companies register a geological discovery by November 18, 2024, the deadline will be extended by one year in which it can be studied.

The importers also state that exploration activities are in an advanced phase – two 2D and 3D seismic survey campaigns have been conducted and three exploratory wells have been drilled. As a result, several prospective gas areas have been identified. Plans are to drill more wells to prove the potential of these areas early in the second quarter of next year.

We remind you that some of the analyzes were presented to the deputies of the Energy Committee at the beginning of the month. Two zones from the eastern part of the Khan Aspasruh block - Krum and Vineh - have been identified as prospective. The exploratory perimeters are close to the areas of open natural gas in the waters of Romania and Turkey.