Bulgaria Signs Agreement with Shell for Oil and Gas Exploration in Black Sea Block "1-26 Khan Tervel"

A contract was officially signed on April 15 at the Council of Ministers between the Ministry of Energy and Shell Exploration & Production for the exploration and prospecting of oil and natural gas in Block 1-26 "Khan Tervel", located in Bulgaria’s exclusive economic zone in the Black Sea.

Prime Minister Rosen Zhelyazkov stressed that this contract, in addition to its economic importance, has a huge political significance.

Zhecho Stankov - Minister of Energy:
"With the signing of this agreement, we are taking another important step toward unlocking the potential of Bulgaria’s deep-sea resources in the Black Sea for future gas supplies. I have always maintained that gas discovered on national territory—onshore or offshore—will be the most affordable for several reasons. Unlike pipeline imports, where up to 30% of the price comes from transit fees, domestic production avoids such costs. Additionally, the state will receive concession payments from exploration and production activities, which can reach up to 30%. That means every third molecule of gas could translate into direct value for the national budget."

"It is important to note that this promising block, covering over 4,000 square kilometers, borders Block 'Han Asparuh', where extensive exploration and drilling operations are already underway. The expected investments by Shell—covering environmental compliance, training of Bulgarian specialists, and 3D seismic imaging, essentially an 'X-ray' of the subsoil—are only a portion of the financial commitment we anticipate. The initial funds, as well as future concession revenues, will flow through the state budget and ultimately benefit Bulgarian citizens."

Eugene Okpere - Executive Vice President Exploration at Shell

"This is my first time in Bulgaria and I want to thank you immediately for your warm hospitality and for everything except the weather. It is a pleasure to be here as a representative of Shell at the signing of this landmark agreement, a cornerstone in our future cooperation. We hope that, with our technical expertise, we will carry out this work safely and responsibly within Bulgaria’s exclusive economic zone in the Black Sea."
"The first phase involves conducting 3D seismic surveys to assess the potential for natural gas discoveries and evaluate the opportunity for diversifying Bulgaria’s energy sources. Ultimately, we aim to contribute to enhancing Bulgaria’s energy security by unlocking the potential of the Black Sea, through both our skills and our commitment."

Rosen Zhelyazkov - Prime Minister:

"Beyond its purely technical and scientific aspects, this agreement carries great political significance. Bulgaria is joining the group of Black Sea countries actively developing the untapped natural potential of the seabed. Shell’s entry into the exploration and production market is a strong signal that developing our own reserves holds tremendous potential."

"This process, of course, will not happen overnight. It will begin with research using the most advanced technologies—technologies that will involve supercomputers and artificial intelligence to help uncover the secrets hidden beneath the seabed."

"Moreover, this agreement is a sign of the growing trust in Bulgaria as a secure and reliable partner for long-term foreign investment. After three unsuccessful attempts to conclude this contract, we now see progress that can have a direct impact on both Bulgaria’s and Europe’s energy security by enabling true diversification of natural gas sources—something we often talk about but have yet to fully achieve."

"I hope that in the coming years, through continued exploration and with the support of local communities, we will be able to celebrate the achievement of true energy independence for Bulgaria—and a significantly more affordable source of energy for our people."