Total E&P Bulgaria cancels offshore well drilling tender in Black Sea

The company has also cancelled a tender for offshore logistics services related to the drilling of two wells at the exploration block, separate notices published on the website of the Public Procurement Agency indicated.

The drilling programme at the 1-21 Han-Asparuh exploration block has been postponed for 2016, according to the notices.

The Bulgarian unit of Total, which also acts on behalf of Austria’s OMV and Spain’s Repsol, cites the fast and continuous reduction in oil prices worldwide, which has affected the three companies' budgets, as the main reason for the cancellation of the tenders. The companies are unable to provide financing for the services envisioned in the tenders in 2015.

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 square kilometres with water depths up to 2,200 metres.

Total has a 40% interest in the offshore project while OMV and Repsol own stakes of 30% each.