Bulgaria Secures 10% Stake in Black Sea 'Khan Asparuh' Energy Exploration

Historic State Participation in Black Sea Energy

Bulgaria has officially secured a 10% stake in the consortium exploring for oil and natural gas in the Han Asparuh offshore block in the Black Sea. The agreement, signed on January 21, 2026, marks the first time in modern Bulgarian history that the state will directly participate as an investor in offshore hydrocarbon exploration. The state-owned Bulgarian Energy Holding (BEH) joined the venture, which includes OMV Offshore Bulgaria, a unit of OMV Petrom, and NewMed Energy Balkan Limited, a unit of Israel's NewMed Energy.

The government's approval for BEH's participation was granted earlier in January. Under the new structure, OMV Petrom remains the operator with a 45% stake, NewMed Energy also holds 45%, and BEH now owns the remaining 10%. BEH will contribute its proportional share of costs for drilling preparations and operations.

Strategic Imperatives: Energy Security and Revenue Generation

The acquisition is a strategic step for Bulgaria, primarily aimed at strengthening the country's energy security and reducing its reliance on imported energy sources. Officials anticipate that commercial discoveries could generate substantial revenues for the state budget. Energy Minister Zhecho Stankov emphasized the importance of the move, stating, 'The cheapest gas is our own gas.'

In the event of a commercial discovery, the state stands to benefit significantly through multiple channels:

• Concession fees: These can reach up to 30% for oil and gas production.
• Direct revenues: BEH's 10% equity stake will provide a share of future revenues from any commercial output.

The agreement was signed at the Council of Ministers in Sofia, attended by outgoing Prime Minister Rosen Zhelyazkov and outgoing Energy Minister Zhecho Stankov.

The Khan Asparuh Block: Project Details and Future Outlook

The Han Asparuh block, designated as Block 1-21 'Khan Asparuh,' is situated in Bulgaria's deepwater Black Sea area, covering approximately 14,000 square kilometers with water depths reaching nearly 2,000 meters. Exploration activities in this block commenced in 2012.

The approved work plan, valid until October 18, 2026, includes the drilling of three wells: Vineh-1, Krum-1, and Vineh-2. Drilling for the first of these, Vineh-1, began in December 2025, utilizing the drilling vessel Noble Globetrotter I. An analysis by EY, commissioned by OMV Petrom and NewMed Energy, suggests that every €1 billion invested in offshore projects in the Bulgarian Black Sea could potentially generate up to €5.2 billion.