Bulgaria Pleased With Shale Gas Interest

Bulgaria's Cabinet has formalized the earlier announcement of the award of  a large-scale concession for shale gas exploration to Chevron Corp.

In May, Bulgarian Economy, Energy, and Tourism Minister Traicho Traikov announced that Chevron landed the shale gas exploration concession near the town of Novi Pazar in northeastern Bulgaria with a significant offer of EUR 30 M, outbidding BNK Petroleum.

Novinite reports that Minister Traikov expressed his satisfaction that tender process was transparent and that Chevron's payment will be directed into Bulgaria's state budget.

According to the estimates provided by bidders, the deposit near Novi Pazar contains between 300 billion and 1 trillion cubic meters of shale gas. In Traikov's words, Bulgaria's shale gas deposits should be able to guarantee its domestic consumption of natural gas for the next 1000 years.

Under the Bulgarian government concession, Chevron is to draft a working program for its exploration worth EUR 50 M.

Bidders can submit offers until the end of June 2011 for two other shale gas exploration tenders being held by the Bulgarian government.