March 14 (SeeNews) - Bulgaria's government said on Wednesday it will extend by two years the permit held by France's Total, Austria’s OMV and Spain’s Repsol for exploring for oil and natural gas in the 1-21 Han Asparuh offshore block in the Black Sea.
During the two years, the companies will carry out additional geophysical works worth a total of 3 million euro ($3.7 million) at the block, the government said in a statement.
Total has a 40% interest in the project, while OMV and Repsol own stakes of 30% each.
The 1-21 Han Asparuh block is located deep offshore in the Bulgarian sector in the western part of the Black Sea and covers an area of 14,220 sq km with water depths up to 2,200 m.
In September last year, the companies started the second deepwater drilling in the Bulgarian offshore block aimed at obtaining additional data for the block's hydrocarbon potential.
In October 2016, Total said it had discovered oil in the 1-21 Han Asparuh block.
In January 2014, the three companies completed a 210-day 3D seismic survey, covering 7,740 sq km. It came after a 2D seismic survey of 3,000 km, which was completed in October 2013. However, in December 2014, the consortium decided to delay drilling at the block due to the slump in global oil prices.
The companies won a permit for prospecting and exploration of oil and gas in the 1-21 Han Asparuh block in 2012. Under the terms of the contract, they committed to invest over 1.0 billion euro in the gas exploration process, while Bulgaria would receive 40 million euro in the form of a bonus payments from the deal, the Bulgarian economy ministry said at the time.
($= 0.8072 euro)