Israel’s NewMed getting in on Black Sea hydrocarbon exploration ops

Southeastern Europe’s integrated energy player OMV Petrom has struck a deal with NewMed Energy Balkan, a subsidiary of Israel’s NewMed Energy, for the transfer of a partial stake in an offshore block in Bulgaria’s part of the Black Sea, enabling the latter to join the upcoming exploration activities in search for more hydrocarbons.

Thanks to this partnership, NewMed Energy will get a 50% stake in the OMV Petrom-operated Han Asparuh block off the coast of Bulgaria to assist Southeastern Europe’s firm in advancing offshore exploration efforts.

While OMV Petrom will maintain its role as operator, NewMed Energy will bear a significant part of the costs of the exploration and appraisal operations in exchange for the 50% interest in the Black Sea asset. The closing of the transaction is expected to take place in the first half of 2025, following the fulfillment of several commercial conditions and approval of the Bulgarian authorities.

According to the operator, the exploration in Bulgaria’s Han Asparuh offshore block is “extremely important” for ensuring energy security in Bulgaria and the region. Therefore, this collaboration is seen as beneficial for both companies as it allows them to share the risks and costs associated with the project, thereby facilitating the advancement of exploration efforts.

Located in the western Black Sea and south of Romania’s Neptun Deep block, the Han Asparuh exploration block covers an area of 13,712 square kilometers with water depths slightly below 2,000 meters.

Exploration activities, which started in 2012, included geological and geophysical surveys alongside the drilling of three exploration wells. OMV Petrom highlighted that an extensive 3D seismic campaign was finalized in May 2020 to identify potential drilling targets.

Cristian Hubati, Member of OMV Petrom Executive Board responsible for Exploration and Production, commented: “With operator experience in shallow and deep waters of the Black Sea, OMV Petrom brings extensive expertise to the region.

“Given its proximity to Romania and geological similarities, Bulgaria is a natural extension of our offshore activities. Advancing exploration activities in Bulgaria has the potential to support the security of energy supply in Bulgaria and the region.”

OMV Petrom welcomed the arrival of Transocean’s rig to Romania earlier in November 2024. This semi-submersible is scheduled to begin drilling activities in the Black Sea in 2025.

On the other hand, NewMed recently confirmed the delay in the planned activities on a huge natural gas field offshore Isreal after Chevron, as the operator, decided to postpone these operations due to the current situation in the region and the ongoing Israel-Gaza conflict.