Recent upstream developments in the Black Sea. Bulgaria

Transcription

1 Recent upstream developments in the Black Sea Bulgaria

2 MAIN DEVELOPMENTS OVER THE LAST 12 MONTHS Policy level The new Bulgarian Government pointed out upstream developments in the Black Sea as a key priority for ; Teres block to be re-tendered in the near future; Environmental considerations following the recent onshore precedents Environmental assessment; Onshore Vratsa block pending completion of the tender results; Shale gas ban remains in place. Main practical milestones achieved Two extensions of the Han Asparuh license and completion of the second well; potential third well this year. Completion of the overall work program for Han Kubrat (former Silistar) block and potential first well this year. Preparation for start of production from Kavarna East deposit and transformation of Galata deposit into Gas storage. 2

3 Bulgaria exploration blocks upstream developments Galata (Petroceltic four production fields) Han Asparuh (Total/OMV/Repsol deep water 2 wells) Han Kubrat (Shell deep water) 3

4 Galata Block Petroceltic Operations The production continues despite of the decrease of the volumes Pending extension of Kaliakra concession agreement Envisaged transformation of Galata field into gas storage Start of production from Kavarna East deposit Integration into the Balkan Gas Hub project supported by the EU Commission and the Bulgarian Government 4

5 Block Han Asparuh Exploration Total/OMV/Repsol First time implementation of the Offshore Safety Directive and legislation for the second well; Extension with 135 days of the initial period of 5 years; Successful completion of the second well; First regular extension of the term 2 years to 2020; Two wells drilled so far (POL 1 and RUBIN 1); A third well considered for the first regular extension. 5

6 Block Han Kubrat Shell Successful and timely acquisition of 2D and 3D seismic surveys Completion of the obligatory part of the overall work program ahead of schedule Completion of the Corporate Social Responsibility undertakings under the Exploration agreement Discussions and potential procedure for approval of first optional exploration well 6

7 Significant court practice related to environmental assessment for future exploration activities Decision No dated 31 May 2017 of the Bulgarian Supreme Administrative Court ruled that the necessity of having environmental assessments shall be considered during the process of co-ordination of overall work plans, including oil and gas exploration developments and investments because they: are programs as per the Environment Protection Act and fall within the scope of chapter six of the EPA; frame future developments within investment proposals; and are included in the Ordinance on the Terms and Conditions for Carry out of Environmental Assessment of Plans and Programs (State Gazette No. 57/ ) 7

8 Potential legislative amendments proposed by the Mining chamber Environment Protection Act: to authorize the Minister of Environment and Waters (and not the Regional inspectorate of MEW) to issue the decision for considering the necessity of having an EIA. Underground Resources Act: Providing additional financial security against environmental damages to the continental shelf and exclusive economic zone; Specific penalty for carrying out activities in the continental shelf and the exclusive economic zone without duly approved internal plan for emergency reaction; 8

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11 Kostadin Sirleshtov Partner, CEE Head of Energy T F Kostadin Sirleshtov is a partner at CMS Sofia since 2008 and Head of Energy for CEE since His particular area of expertise is in conventional, nuclear, renewables, oil & gas, infrastructure, projects, PPP, public procurement, underground resources. He has worked as the Chief of the Minister s cabinet for the Ministry of Energy and Energy Resources and held various Board positions in energy companies. Kostadin has vast experience in advising major international oil & gas prospecting and exploration companies in Bulgaria on various onshore and offshore projects, such as Petroceltic/Melrose Resources, OMV/Total/Repsol, Shell, ecorp, Saipem, etc. Kostadin is ranked as one of the top Bulgarian energy experts in the world's leading legal directories Chambers & Partners, Legal 500 and IFLR.. kostadin.sirleshtov@cmscmno.com CMS Cameron McKenna Nabarro Olswang LLP Landmark Center 14 Tzar Osvoboditel Blvd Sofia, Bulgaria Languages English, Bulgarian Relevant experience Advising on largest upstream oil & gas exploration investment in Bulgaria to date. Advising on all ongoing offshore production concessions in Bulgaria to date. Advising on the second gas storage project offshore Bulgaria. Advising on the proximity and crossing agreements related to the construction of an international gas pipeline. Education LLM (Hons) Law Faculty Sofia University, EU & UK law diploma, Cambridge University Memberships Bulgarian Bar Association, International Bar Association Lectures and Publications List Available upon request 11

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