TotalEnergies gives up gas exploration in Khan Asparuh block, Romanian company takes over operations

The Romanian company "OMV Petrom", controlled by the Austrian energy giant OMV, has taken over the role of operator of the offshore block "Khan Asparuh" in Bulgaria, and the participation of the French company "Total Energies" is about to be taken over. ). This is clear from data published in the company's annual report, reports the Romanian edition "Economica", quoted by BTA. 51 percent of the shares in the company are held by OMV, and 20 percent by the Romanian government.

"We continue to strengthen our position in the Black Sea. We have assumed the role of operator and will continue the exploration activity in the "Khan Asparuh" perimeter in Bulgaria," states "OMV Petrom" in its annual report.

The French company "TotalEnergy" and the Romanian "OMV Petrom" were partners in the offshore block "Khan Asparuh", located in a deep-water section of the Bulgarian sector in the western part of the Black Sea, the publication notes. The block covers an area of 14,220 sq km, with depths of up to 2,200 m, and is located next to the Romanian Neptune Deep perimeter, where first gas production is expected in 2027.

The exploration contract was awarded in 2012. TotalEnergy, which was the operator at the time, announced the discovery of oil reserves in 2016. After Spanish firm Repsol gave up its 30 percent stake in project, now Total owns 57 percent, and "OMV Petrom" - 43 percent (the size of the shares has not changed, because the actual change of ownership has not been carried out through the Commercial Register in Bulgaria, note ed.). The companies received in 2022 a two-year extension, until 2024, of the oil and natural gas exploration permit.

According to the publication, information from the annual report shows that Petrom has taken over the role of operator of the block from the French firm, which means that the Romanian company will make the decisions and sign the contracts for the activities. Moreover, according to information from the Romanian publication "Profit", at the end of last year "TotalEnergy" notified "OMV Petrom" of its intention to withdraw from the "Khan Asparuh" project, and the Romanian company is in the process of taking over its share.

Thus, at least for some time, if it does not look for partners, "OMV Petrom" will be the 100 percent owner of the project in the Bulgarian water area of the Black Sea, notes "Economica".

The publication reminds that last summer the general director of "TotalEnergies EP Bulgaria" Yves Liu Stanf stated that, according to estimates, the "Khan Asparuh" block has the potential to produce a total of 13 billion cubic meters of natural gas per year from two deposits.

The project partners intend to start exploratory drilling for natural gas in the Khan Asparuh block in the second quarter of 2024, Lew Stanf also said. If the initial drilling proves successful, appraisal studies will be carried out in 2025, and production is expected to start around 2030, the representative of the French company also indicated.