Bulgarian Energy Holding to Acquire 10% Stake in Black Sea Oil Exploration Block

Bulgaria's state-owned energy group Bulgarian Energy Holding will acquire a 10% stake in oil and gas exploration rights for the Han Asparuh block in the Black Sea, the government said on Wednesday.

The Council of Ministers approved the deal, allowing BEH to buy 5% each from OMV Offshore Bulgaria, a wholly owned subsidiary of Romania's oil and gas group OMV Petrom, and NewMed Energy Balkan, a unit of Israel's NewMed Energy, which currently hold the permit.

Following the transfer, OMV and NewMed will each retain 45%, while BEH will hold 10%.

The Han Asparuh block lies in the deepwater area of the Black Sea, within Bulgaria's exclusive economic zone, and the exploration contract has been in force since September 2012.

The government said the move is part of efforts to diversify energy resources and strengthen energy security in Southeast Europe.

(Reuters)