Southeastern Europe’s OMV Petrom Welcomes New Partner for Offshore Exploration in the Black Sea

Southeastern Europe’s integrated energy player OMV Petrom has welcomed NewMed Energy Balkan, a subsidiary of Israel’s NewMed Energy, as its new partner in an offshore block in Bulgaria’s part of the Black Sea ahead of the upcoming hydrocarbon exploration activities, which are anticipated to start at the block this year.

NewMed Energy set the wheels in motion to buy a 50% stake in the OMV Petrom-operated Han Asparuh block off the coast of Bulgaria to assist Southeastern Europe’s firm in advancing offshore exploration efforts. The farm-down process has now been completed, allowing the two partners to hold equal stakes in the project after the Bulgarian Council of Ministers put its stamp of approval on the transaction.

Cristian Hubati, Member of OMV Petrom Executive Board, responsible for Exploration and Production, commented: “Access to local resources is essential for energy security, and through the upcoming exploration activities we are opening new perspectives in the Bulgarian Black Sea area.

“It is a complex process, with high investments and we count on the support of all stakeholders to progress with the exploration according to our ambitious schedule. We are pleased to welcome NewMed Energy into the project; their extensive experience in the energy sector will enhance our capabilities and contribute to the project’s success.”

According to OMV Petrom, the collaboration allows partners to share the risks and costs associated with the project, facilitating the advancement of exploration efforts. Currently, the aim is to start drilling an exploration well in 2025, subject to obtaining all the necessary permits. Based on the well’s results, additional drilling will be contemplated.

Yossi Abu, CEO of NewMed Energy, remarked: “We believe in the potential of operations in Bulgaria, due to probability of discovery and proximity to key markets – especially in light of rising global demand for natural gas and the need for a reliable and diversified supply.”

Located in the western Black Sea in Bulgaria, south of the Neptun Deep block in Romania, Han Asparuh is an exploration block covering an area of 13,712 square kilometers with water depths slightly below 2,000 meters.

Originally, the exploration activities started in 2012 and included geological and geophysical surveys and drilling of three exploration wells. Afterward, an extensive 3D seismic campaign was finalized in May 2020 to identify potential drilling targets.

OMV Petrom operates several blocks, producing oil and gas in the shallow waters, while developing, in partnership with Romgaz, the Neptun Deep deepwater project, with estimated volumes of 100 billion cubic meters of gas.

One of Transocean’s semi-submersible rigs recently started its move to the site, where it will embark on a multi-well drilling campaign to unlock natural gas from the project, targeting first production in 2027.