The tenders for oil and natural gas exploration
rights for Block 1-14 Silistar and Block 1-22 Teres, two exploration blocks
located in Bulgaria’s Black Sea continental shelf and exclusive economic zone,
are underway.

The licenses for prospecting and/or exploration of
oil and natural gas will be awarded for 5-year periods. The applicant-merchant
or at least one of the participants in the applicant-corporation should have
generated total net income of sales for the last 3 financial years, depending
on the date on which it was established, not less than EUR 150 000 000.

The deadline for submitting applications for
participation in the competition expires on the 140th day following the
publication and the deadline for submitting the proposals under the competition
dossier expires on the 155th day following the publication. The holders of the
permits are expected to be selected in early autumn.

The launch of the competitions for the two
exploration blocks is part of the commitment of the Bulgarian government to
reduce the country’s dependence on imports and to develop its domestic oil and
gas reserves. The government expects that the competitions will attract the
attention of leading international companies in the sector.