Delek Group (TASE: DELKG) Mediterranean energy exploration and production unit NewMed Energy (TASE: NWMD) together with Romania's OMV Petrom has signed an $80 million contract With Noble Corp. for a drilling in the Black Sea, offshore from Bulgaria.
The two wells that will be drilled in the Han Asparuh block, although there is no guarantee that gas will be found. The smaller of the two wells has a slightly less than 50% potential for 70 billion cubic meters (BCM) of gas and the larger of the wells has a 30% chance of providing 170 BCM.
The exploratory drilling will begin in October 2025 in the smaller but more promising well. After the drilling is complete it will move onto the bigger well. If both explorations are successful, this will have a dramatic impact on Bulgaria, and a certain impact on the entire EU. This is sufficient gas to supply all of Bulgaria's energy needs, with a surplus for export to the rest of Europe. There is already a gas pipeline connecting Bulgaria to Greece, Greece to Italy, and from there gas can be pumped into the entire EU.
From NewMed's perspective, the wells have significant potential on an economic level, since the price of gas in Europe is currently extremely high (about $11.5 per thermal unit, more than double that in Israel). This means that any discovery of gas will be consumed by the European economy and a high price will be paid for it.
Published by Globes, Israel business news - en.globes.co.il - on August 3, 2025.
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