Australia's Woodside Energy said that it has entered into a farm-in agreement with Shell International Exploration and Development Italia to acquire a 30% non-operated participating interest in Block 1-14 Khan Kubrat, in the Bulgarian sector of the Black Sea.
"This opportunity targets an emerging oil and gas province close to existing infrastructure and markets," Woodside Energy said in an interim financial report, published on Wednesday. Planning is in progress to drill an exploration well in the second quarter of 2019, Woodside Energy said. In January, Shell successfully completed a comprehensive geophysical survey in the Khan Kubrat licence area and said it expects to start an exploration drilling programme in late 2018 or early 2019. "We are currently in the process of preparing for a single exploration well in the Khan Kubrat block and will conduct all necessary assessments in line with Bulgarian legislation and Shell internal procedures," Shell said at the time, adding that the exploration drilling programme is expected to take approximately 3-4 months to complete.In February 2016, Bulgaria's energy ministry said that Royal Dutch 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 (excluding VAT) and invest 18.6 million euro ($21.2 million) in research activities, the ministry said at the time.