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SOFIA (Bulgaria), July 19 (SeeNews) - Shell has failed to discover commercial deposits of oil and gas during its exploration drilling programme in block 1-14 Khan Kubrat in the Bulgarian sector of the Black Sea, Australia's Woodside Petroleum, Shell's partner in the project, said.
"The well reached target depth in late May 2019 with non-commercial hydrocarbon shows in target reservoirs. The well was plugged and abandoned as planned," Woodside Petroleum said in second-quarter 2019 report on Thursday.
Further studies are being undertaken to inform future activities in the block, Woodside Petroleum said, adding that no exploration or appraisal wells are planned to commence in the third quarter of 2019.
The drilling operation, which started in April, was expected to discover oil and gas deposits within a planned period of 3-4 months.
Shell, through its unit Shell International Exploration and Development Italia, currently holds 50% of the exploration rights on offshore Block 1-14 Khan Kubrat.
Earlier this year, Shell International Exploration and Development Italia transferred 20% of the exploration rights for the block to Repsol Bulgaria Khan Kubrat. In December 2018, Shell transferred 30% of the exploration rights to the Bulgarian branch of Woodside.
Last year, the Bulgarian government allowed the transfer of the exploration rights on Bulgaria’s offshore block 1-14 Silistar to Shell International Exploration and Development Italia from Dutch-based Shell Exploration and Production. In addition to the transfer, the block’s name was changed from Silistar to Khan Kubrat.
In February 2016, Bulgaria's energy ministry said that Shell has signed a five-year term contract for exploration for oil and gas in the Silistar block. Under the contract, the company will pay the government 4.9 million euro ($5.5 million) and invest 18.6 million euro in research activities, the ministry said at the time.
($ = 0.88989 euro)