New tender procedure for oil and gas onshore in Bulgaria


The government recently announced a new tender procedure for granting a licence for prospecting and exploration for oil and natural gas in the area Block “1-24 Kitka”. The 704 sq. km block is located onshore in the South-Eastern part of the Varna Municipality. Тhe license will be for a 5-year term, with the opportunity to be prolonged twice for a total of four more years.

The tender procedure starts officially when the tender decision is published in the Official Gazette of the EU, which is expected next year.

Interested parties will be able to buy tender documentation for up to 120 days after the decision is published. The price of the tender documentation is 10,000 BGN. Candidates must submit applications for participation to the Ministry of Energy no later than 140 days from the publishing of the decision, and offers must be submitted – by the 155 day after publishing. The deposit for participation is 5,000 BGN

In order to participate in the tender procedure candidates will be required among others to prove their managing skills and that for the past 3 years they have had a net income from sales or other financial resource of at least 2,000,000 EUR.

Applications will be assessed according to the suggested work programmes, funds for restoration of the environment, bonuses, education and the managing and financial capacity of the candidates.

Block “1-24 Kitka” has been geologically explored in the past. The geological outlook of the block will be presented in the tender dossier. All other geological information is available in the Geological Fund of the Ministry of Energy.

Earlier this year Shell was granted a licence for exploration and prospecting in the Silistar Block. Recently Total announced its plans for drilling procedures in the Han Asparuh Block next year. With these events in mind the Ministry of Energy hopes for increased interest in the Kitka Block, which is considered another step in making Bulgaria a more energy independent country.

Additionally, one more field (Block Vratsa –West) is expected to be tendered by the end of the year.