OMV Petrom finalizes deal with NewMed Energy to advance exploration in the offshore Khan Asparuh block in Bulgaria

OMV Petrom, the largest integrated energy producer in Southeast Europe, has finalized a deal to advance exploration in the offshore Khan Asparuh block in Bulgaria. It is being implemented between OMV Petrom's subsidiary - OMV Offshore Bulgaria and NewMed Energy Balkan, a subsidiary of NewMed Energy. NewMed Energy is a leading Israeli energy company for the exploration, development, production and sale of natural gas and condensate. After the completion of the deal, both parties will hold equal shares of 50%. OMV Petrom will be the operator of the project through OMV Offshore Bulgaria. The transfer of the stake in NewMed Energy Balkan has been approved by the Council of Ministers of the Republic of Bulgaria.

The partnership between OMV Petrom and NewMed Energy allows both parties to share the risks and costs associated with the project, thus facilitating the progress of exploration activities.

Christian Hubati, Member of the Executive Board of OMV Petrom, responsible for Exploration and Production: “Access to local resources is essential for energy security. Through the upcoming exploration activities, we are opening up new prospects in the Bulgarian part of the Black Sea. This is a complex process involving large investments, and we rely on the support of all stakeholders to advance the exploration in accordance with our ambitious schedule. We are pleased to welcome NewMed Energy to the project. The company’s extensive experience in the energy sector will enhance our capabilities and contribute to the success of the project. The aim is for the partners to start drilling an exploratory well in 2025, subject to obtaining all necessary permits. Based on the results, an assessment for additional drilling will be made.”

 Yossi Abu, CEO of NewMed Energy: “We believe in the potential of operations in Bulgaria, as the probability of success is high. The country’s proximity to key markets is also an important factor - especially in light of the growing global demand for natural gas and the need for reliable and diversified supplies. We are pleased to be collaborating with OMV Petrom, a company with proven experience in the region. We are committed to moving forward operationally along the set milestones.”

Khan Asparuh Block

Khan Asparuh is an exploration block located in the western Black Sea in Bulgaria. It is located south of the Neptun Deep block in Romania, with an area of ​​13,712 km² and a water depth of just under 2,000 m. Exploration activities began in 2012 and included geological and geophysical surveys, as well as the drilling of three exploration wells. An extensive 3D seismic campaign to identify potential drilling targets was completed in May 2020. More information about Neptun Deep here.

OMV Petrom in the Black Sea

OMV Petrom has over 40 years of experience in oil and gas production in the Black Sea. In the Romanian sector, the company operates several blocks producing oil and gas in shallow waters. In deep-water areas, OMV Petrom, in partnership with Romgaz, is developing the Neptun Deep block with estimated volumes of 100 billion cubic meters of gas. First gas production from Neptun Deep is expected in 2027.