The Bulgarian government’s decision to approve the transfer of a 33% stake in the Black Sea Khan Tervel exploration block to Turkish Petroleum Overseas Company Ltd. has triggered debate over energy security, national interests and foreign participation in strategic resources.
The decision of the Council of Ministers from July 29 was published in the State Gazette on Wednesday. It allows Shell Exploration and Production (96) B.V. to transfer part of its rights and obligations under the permit for oil and natural gas exploration in Block 1-26 Khan Tervel to the Turkish state-owned company.
Following the approved change, the consortium exploring the block will consist of Shell with a 42% share, Turkish Petroleum Overseas Company Ltd. with 33%, and OMV Petrom E&P Bulgaria SRL with 25%.
The transfer is permitted under the Subsoil Resources Act, which regulates the possibility of changing the holders of rights and obligations under exploration permits.
Block 1-26 Khan Tervel is located in Bulgaria’s exclusive economic zone in the deep waters of the Black Sea, south of the Khan Asparuh exploration area. The block covers around 4,000 square kilometers and is intended for the search for oil and natural gas deposits that could contribute to Bulgaria’s energy security.
The exploration contract for the area was signed in December 2025 with Shell Exploration and Production (96) B.V. for an initial period of five years. Due to the financial and technical challenges associated with deepwater drilling, Shell has gradually brought in additional partners.
In April 2026, Shell transferred 25% of its rights and obligations to OMV Petrom E&P Bulgaria SRL. The latest government decision approved the entry of Turkish Petroleum Overseas Company Ltd., a subsidiary of Turkish state energy company TPAO, with a 33% stake.
The government authorized the energy minister to conclude an additional agreement with the companies within one month to formalize the partial transfer.
The development has fueled public debate over the role of a Turkish state-controlled company in Bulgaria’s offshore energy sector. Critics have raised concerns about the involvement of a neighboring country in a strategic resource project located in Bulgarian waters.
Opponents of the deal argue that the increased presence of Turkish state companies in the Black Sea energy sector could create geopolitical risks or conflicts of interest, given Turkey’s own offshore energy ambitions and exploration activities in the region.
Questions have also been raised over Bulgaria’s control over potential future oil and gas discoveries and whether Bulgarian state companies, such as Bulgarian Energy Holding, should have been given a larger role in such strategic projects.
Supporters of the agreement point to the technical and financial realities of deepwater exploration. Drilling operations in the Black Sea require major investments, advanced technology and significant risk-sharing between partners.
They argue that bringing in companies with offshore experience, including Turkish Petroleum, Shell and OMV, strengthens the project’s chances of success and reduces the financial burden on individual participants.
The government has also emphasized that the procedure is fully legal and does not represent a transfer of Bulgarian sovereign rights. Instead, it is a partial transfer of rights by the existing investor under the rules of the Subsoil Resources Act.
The Khan Tervel block is considered part of a wider effort to explore the Black Sea’s energy potential, following major natural gas discoveries in Romanian and Turkish offshore waters. The participation of international energy companies is expected to provide additional financial and technological resources for possible future discoveries.