site.bta Shell Chosen to Explore for Gas in Silistar Block in Black Sea

Shell Chosen to Explore for Gas in Silistar Block in  Black Sea

Sofia, September 29 (BTA) - Shell Exploration and Production, a subsidiary of Royal Dutch Shell, has been chosen to explore for natural gas in Silistar, the largest block in the Black Sea, for five years, Energy Minister Temenouzhka Petkova said after a forum on the liberalization of the energy market on Tuesday.

Shell offers to invest 18.6 million euro in exploration works and to pay Bulgaria 4.9 million euro (both exclusive of VAT) at the signing of the contract, said Petkova. She called this a great success and one of the first important steps towards the diversification of gas sources and routes.

The working programme includes 2D and 3D seismics, measures protecting the environment, human health and cultural property, as well as a drilling option.

A draft decision will be introduced in the Council of Ministers and if it is approved, the Energy Minister will be authorized to sign a contract. Petkova said she hoped this would be done by the end of October.

The Energy Minister said that quite a few companies bought bidding documents for the Silistar block but only Shell submitted a bid.

Five companies bought bidding documents for the Teres block but no bids were submitted.