OMV Petrom, the largest integrated energy producer in Southeastern Europe, announces the closing of the farm-down transaction between its subsidiary OMV Offshore Bulgaria and NewMed Energy Balkan, a subsidiary of NewMed Energy.
NewMed Energy is Israel’s leading energy partnership in the exploration, development, production and sale of natural gas and condensate. After closing of the transaction, the two partners hold equal stakes in the project – each 50%, with OMV Petrom (through OMV Offshore Bulgaria) as operator of the project.
The transfer of the stake to NewMed Energy Balkan has been approved by the Bulgarian Council of Ministers. This collaboration allows both parties to share the risks and costs associated with the project, thereby facilitating the advancement of exploration efforts.
Cristian Hubati, member of the OMV Petrom Executive Board, responsible for Exploration and Production: “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”.
The partners aim to start the drilling of an exploration well in 2025, subject to obtaining all the necessary permits. Based on the well’s results, additional drilling will be assessed.
Yossi Abu, CEO of NewMed Energy: “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.
We are pleased to collaborate with OMV Petrom, a company with a proven track record in the region, and we are committed to moving forward swiftly along the defined milestones”.
Han Asparuh is an exploration block located in the western Black Sea in Bulgaria, south of the Neptun Deep block in Romania and has an area of 13,712 km² with water depths slightly below 2,000 m. Exploration activities started in 2012 and included geological and geophysical surveys and the drilling of three exploration wells. An extensive 3D seismic campaign was finalized in May 2020 to identify potential drilling targets.