{"id":126198,"date":"2026-02-06T09:52:39","date_gmt":"2026-02-06T09:52:39","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=126198"},"modified":"2026-02-09T10:37:33","modified_gmt":"2026-02-09T10:37:33","slug":"bulgaria-energy-oil-gas","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/bulgaria-energy-oil-gas\/","title":{"rendered":"Bulgaria: Energy- Gas &amp; Oil"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-126198","comparative_guide","type-comparative_guide","status-publish","hentry","guides-energy-oil-gas","jurisdictions-bulgaria"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Visiaw<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/01\/visiaw.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Visiaw<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/01\/visiaw.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Energy- Gas &amp; Oil laws and regulations applicable in Bulgaria<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have an established upstream oil and gas industry? What are the current production levels and what are the oil and gas reserve levels?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, Bulgaria has an established upstream oil and gas industry.<\/p>\n<p>Prospecting and exploration activities started as early as 1927. The first commercial oil discovery dates from 1951, onshore in North-East Bulgaria. In 1963, a gas-condensate reservoir was discovered in Chiren (North-West Bulgaria, onshore), which was later transformed into the country&#8217;s only currently operating gas storage facility.<\/p>\n<p>Since 2001, the only significant gas production has been offshore in the Galata blocks. At certain points, production there satisfied almost 20% of domestic natural gas consumption. The production fields are currently operated by Petroceltic, with production levels nearing depletion.<\/p>\n<p>According to the latest data from 2023, total natural gas production in Bulgaria reached only 0,9 million cubic meters. Current oil production is insignificant.<\/p>\n<p>There are two major offshore exploration blocks: (i) Han Asparuh Block, held by Austrian OMV and Israeli NEWMED ENERGY, with plans for the Bulgarian Energy Holding to acquire about 10% stake in the project in early 2026; and (ii) Han Tervel Block, held by Shell.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are rights to explore and exploit oil and gas resources granted? Please provide a brief overview of the structure of the regulatory regime for upstream oil and gas. Is the regime the same for both onshore and offshore?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Licensing for oil and gas in Bulgaria has two separate stages: (i) a Permit is granted for prospecting and exploration; and (ii) a separate Concession is granted for development and production if\u00a0 there is discovery. In both cases, a government contract is signed between the investor(s) and the Minister of Energy.<\/p>\n<p>Bulgaria has implemented the requirements of Directive 94\/22\/EC on the conditions for granting and using authorizations for the prospection, exploration, and production of hydrocarbons.<\/p>\n<p>The licensing regime for onshore and offshore projects is largely similar, with slight differences in project terms, area scope, and the complexity of tender procedures. Both a Permit and a Concession may be held by multiple parties.<\/p>\n<p>A prospecting and exploration Permit is granted through a competitive tender procedure conducted by the Minister of Energy.<\/p>\n<p>A Permit holder who registers a commercial discovery within the Permit&#8217;s term and territory may apply for a Concession. If they fail to do so, the Government may launch a tender to award a Concession where oil and gas reserves are commercially proven and assessed and no Permit holder holds rights therein.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key features of the licence\/production sharing contract\/concession\/other pursuant to which oil and gas companies undertake oil and gas exploration, development and production?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>a. Prospecting and Exploration. A Permit for prospecting and exploration is authorised by a Resolution of the Council of Ministers. The Resolution sets the key elements of the Permit: the Permit holder, its term, the location and size of the exploration area, and a mandatory minimum work program for the Permit holder. The detailed terms and conditions are set out in a Prospecting and Exploration Contract signed between the Permit holder(s) and the Minister of Energy.<\/p>\n<p>A Permit for offshore exploration may last for up to 12 years. The total initially permitted exploration area offshore may be up to 20,000 sq. km.<\/p>\n<p>For onshore exploration, the total Permit term is 10 years, with an exploration area of up to 5,000 sq. km.<\/p>\n<p>The Permit holder must provide contractual and financial guarantees to fulfil the minimum work program (which is normally part of the tender award criteria) and environmental protection guarantees.<\/p>\n<p>b. Development and Production. A production concession grants the rights for development and production of oil and gas within a specified area of proven, economically viable, and recoverable reserves. The Concession Contract specifies the rights and obligations of the concessionaire(s) (ie the investors) and the State.<\/p>\n<p>The initial concession term is up to 35 years. It may be extended by a resolution of the Council of Ministers to 50 or 60 years under certain conditions.<br \/>\nThe concession agreement includes a mandatory development plan.<\/p>\n<p>The concessionaire(s) have the following major rights: (i) to become title holder of the hydrocarbons when extracted; (ii) to freely trade such hydrocarbons, subject to downstream and midstream regulations; (iii) to exploit the mining waste and any minerals found there, subject to additional agreement with the State; (iv) to continue exploration of the concession area. The main obligations of the concessionaire(s) are: (i) to pay concession royalties (fees); (ii) to provide financial securities and guarantees; (iii) to report to the Minister of Energy on operations, including by providing the obtained geological information.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any unconventional hydrocarbon resources (such as shale gas) being developed and produced and is there a separate regulatory regime for those unconventional resources?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Since 2012, hydraulic fracking has been prohibited in Bulgaria as a technology for exploring and exploiting oil and gas. Prior to that, there was considerable investor interest in exploring unconventional hydrocarbons, mainly in North Bulgaria.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Who are the key regulators for the upstream oil and gas industry?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Council of Ministers authorises the conduct of tender procedures and the final issuance of Permits for prospecting and exploration and the Concessions for development and production. The Council authorises major amendments to the signed contracts too.<\/p>\n<p>the Minister of Energy conducts the tender procedures and signs on behalf of the State the Prospecting and Exploration Contracts and the Development and Production Concession Contracts.<\/p>\n<p>The Minister of Energy is the central authority governing and supervising all mining activities in Bulgaria, including upstream oil and gas operations. The Ministry manages the National Geological Fund and approves all operations carried out under Permits for prospecting and exploration and Concessions for development and production. The Minister of Energy also implements the requirements of Directive 2013\/30\/EU on safety of offshore oil and gas operations (the Offshore Safety Directive).<\/p>\n<p>Other authorities that have significant impact on the upstream operations are:<\/p>\n<p>i. The Ministry of Environment and Waters approves all operational and development plans regarding environmental impact and biodiversity protection.<\/p>\n<p>ii. Ministry of Defence and Ministry of Culture are consulted when necessary.<\/p>\n<p>iii. Ministry of Agriculture and Foods, for offshore operations.<\/p>\n<p>iv. Ministry of Regional Development and Infrastructure, when development and construction plans begin.<\/p>\n<p>v. Maritime Administration and the Ministry of Transport and Communications for offshore operations.<\/p>\n<p>vi. Energy and Water Regulatory Commission, which regulates natural gas sales in the country upon production and the potential development of gas transportation pipelines.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the government directly involved in the upstream oil and gas industry? Is there a government-owned oil and gas company?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Historically, Bulgaria had a national oil and gas company that operated from 1951 until its privatization in 2003. Since then, the State has not been directly involved in upstream oil and gas operations.<\/p>\n<p>Currently, the State-owned Bulgarian Energy Holding EAD (BEH) is considering joining the Han Asparuh exploration block alongside OMV and NEWMED ENERGY.\u00a0 BEH is not an oil and gas company and has no experience in the field. It is a holding entity that owns several key State-owned energy sector players, including the national electricity and gas transmission network operators, the national gas supplier Bulgargaz, the country&#8217;s only nuclear power plant, the local coal mining company, and several power production facilities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any special requirements for, or restrictions on, participation in the upstream oil and gas industry by foreign oil and gas companies?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Any foreign oil and gas company may apply for a Permit and\/or Concession, subject to:<\/p>\n<p>i. Compliance with exclusion criteria in line with Directive 94\/22\/EC;<\/p>\n<p>ii. It proves that it has technical, financial and professional capabilities to carry out the project;<\/p>\n<p>iii. It is not registered or related to a company registered in a jurisdiction that it listed by the Ministry of Finance as such that allows tax evasion;<\/p>\n<p>iv. Is not subject to international sanctions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key features of the environmental and health and safety regime that applies to upstream oil and gas activities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bulgaria has implemented the Offshore Safety Directive.\u00a0 Under this Directive, oil and gas exploration and production installations must prepare and obtain approval for a report on major hazards and send notification before drilling operations begin. Oil and gas operators must also prepare emergency response plans for approval by the Minister of Energy.<\/p>\n<p>The Minister of Environment must approve exploration and development work plans in advance, determining whether a full environmental impact assessment and\/or compatibility assessment (for biodiversity protection) is required.<\/p>\n<p>Permit and Concession holders are responsible for recovering any damaged or affected areas. They must provide financial securities to the Minister of Energy to guarantee fulfilment of these obligations. They must also provide a financial guarantee covering the costs to prevent or remedy potential environmental damage caused by operations.<\/p>\n<p>General health and safety regulations for workers apply onsite and onboard during operations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the government derive value from oil and gas resources (royalties\/production sharing\/taxes)? Are there any special tax deductions or incentives offered?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>a. Exploration rights are subject to an annual fee paid by the Permit holder. The fee is calculated as a fixed sum per square kilometre of the exploration area. The current exploration fee for oil and gas (both offshore and onshore) is EUR 30.68 per sq.km (last changed in 2024).<\/p>\n<p>b. Concession rights are subject to a concession fee (or concession royalty) calculated as a percentage from the revenue using an R-factor scaling methodology.<\/p>\n<p>The concession payment is calculated by multiplying (i) the total income from oil and gas exploitation before tax by (ii) a percentage rate. The percentage rate is determined by an R-factor scale, where the R-factor represents the ratio of cumulative revenues to cumulative costs. The Ordinance regulating concession payment values is currently under revision. Proposed amendments would set the concession payment between 3.5% and 35% of revenue, depending on the R-factor. Approved exploration and development costs can be carried forward for calculating both the R-factor and concession payments, as well as for tax purposes.<\/p>\n<p>There is no special oil and gas or other mining tax. Both corporate and personal income taxes in Bulgaria are currently 10%.<\/p>\n<p>c. The above is subject to ongoing legal amendments still in draft (as mentioned at the end of this article).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on export, local content obligations or domestic supply obligations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>a. Natural Gas. There are no export bans or export licences required under Bulgarian law to export natural gas extracted under a production concession.<\/p>\n<p>No obligation exists to prioritise sales to domestic purchasers. Under Bulgarian legislation, the wholesale natural gas transactions occur in a liberalised market environment, though producers must make available a certain percentage of their output through the regulated gas exchange. Subsequently, natural gas can be: (i) traded through direct bilateral agreements; (ii) transported abroad through pipeline interconnections; (iii) shipped internationally in liquefied state using LNG tankers, subject to the availability of liquefaction infrastructure.<\/p>\n<p>b. Oil. There is no restriction on exporting crude oil produced locally. There is no domestic supply obligation either.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the regulatory regime include any specific decommissioning obligations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The law sets a general obligation on the Permit holders and concessionaires to undertake decommissioning and recovery of any damaged lands and areas. Usually, the investors would provide financial guarantees to the State securing such obligations. The work plans for exploration or development and production need to include the decommissioning and recovery activities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the regulatory regime that applies to the construction and operation of offshore and onshore oil and gas pipelines?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Construction of pipelines in the Exclusive Economic Zone and the continental shelf does not require construction permitting procedures. However, the construction plans must be approved by the Ministry of Energy and the Ministry of Environment and Waters regarding environmental impact and protection. Other competent institutions must also endorse the plans, including those responsible for defence, fisheries, marine traffic, and cultural protection.<\/p>\n<p>Construction of the pipeline section in the territorial sea and internal sea waters requires a construction permit issued by the Minister of Regional Development and Infrastructure. The procedure includes zoning, approval of designs, and environmental and other governmental approvals.<\/p>\n<p>Onshore construction also requires a full zoning, design, and construction permitting procedure. Competent authorities may differ.<\/p>\n<p>Pipeline operation is regulated by the Energy Act. The law defines a &#8220;production gas pipeline&#8221; (or &#8220;upstream pipeline network&#8221; as per Directive 2024\/1788) as the section from the production site to a processing facility or gas terminal. The production gas pipeline is operated by the Concessionaire. The Energy Act requires the operator to allow equal access to the pipeline to third interested parties, except where this is technically impossible or poses risks.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the regulatory regime that applies to LNG liquefaction plants and LNG import terminals? Are there any such liquefaction plants or import terminals in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bulgaria has no LNG facilities at the moment. Operation of LNG liquefaction plants and LNG import terminals would require a licence issued by the Energy and Water Regulatory Commission.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the regulatory regime that applies to gas storage (not LNG)? Are there any gas storage facilities in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Operating a gas storage in the country requires a dedicated licence issued by the Energy and Water Regulatory Commission. The operator must allow equal access to the facility to third parties in line with EU regulations.<\/p>\n<p>There is one operating gas storage facility in Bulgaria, Chiren. It is owned by the gas transmission operator Bulgartransgaz (100% state owned).<\/p>\n<table width=\"470\">\n<thead>\n<tr>\n<td><strong>Capacity<\/strong><\/td>\n<td><strong>Injection<\/strong><\/td>\n<td><strong>Withdrawal<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Max daily capacity<\/td>\n<td>4.0\u00a0mcm\/d<\/td>\n<td>4.0\u00a0mcm\/d<\/td>\n<\/tr>\n<tr>\n<td>Min daily capacity<\/td>\n<td>0.5\u00a0mcm\/d<\/td>\n<td>0.5\u00a0mcm\/d<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Plans for extension of its capacity by drilling of new operational wells are under way.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a gas transmission and distribution system in your jurisdiction? How is gas distribution and transmission infrastructure owned and regulated? Is there a third party access regime?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bulgaria regulates gas transmission, distribution, and access according to Directive (EU) 2024\/1788 on common rules for the internal markets for renewable gas, natural gas, and hydrogen, along with other relevant EU legislation and network codes.<\/p>\n<p>Bulgartransgaz EAD, a fully state-owned company, operates the gas transmission system under a licence.<\/p>\n<p>Gas distribution is a licensed activity within exclusive geographical territories. The licensed companies are privately owned, with the largest players being Overgas, Citygas Bulgaria, and Aresgas.<\/p>\n<p>Third-party access to the transmission and distribution networks is legally guaranteed in line with EU regulations and gas network codes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a competitive and privatised downstream gas market or is gas supplied to end-customers by one or more incumbent\/government-owned suppliers? Can customers choose their supplier?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A supplier of natural gas must have a licence for trading natural gas. Licensed companies may supply gas to customers at freely negotiated prices. Customers may freely choose their supplier.<\/p>\n<p>The state-owned company Bulgargaz acts as the single licensed public supplier of natural gas. Under this licence, it may operate as a regular trader and supply natural gas to other traders and customers (especially those connected to the transmission network) at freely negotiated prices. It also has certain obligations to offer specified volumes of gas on the organised gas market as a &#8220;market formation player.&#8221; Bulgargaz supplies the majority of imported gas in the country.<\/p>\n<p>Private companies may obtain a licence as &#8220;end suppliers.&#8221; These licences are limited to a specific territory, typically matching distribution licence areas. End suppliers provide natural gas to customers connected to the distribution network who have not selected another supplier. They sell natural gas at regulated prices. The public supplier also sells natural gas to end suppliers at regulated prices.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the downstream gas market regulated?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The downstream gas market is liberalised. However, end consumers connected to the distribution network can still purchase gas from end suppliers at regulated prices. For this reason, the public supplier also sells natural gas to end suppliers at regulated prices.<\/p>\n<p>Bulgaria has two gas exchange markets, though liquidity remains low on both. Production companies and the public supplier (Bulgargaz) are required to offer certain volumes on the organised market.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any significant recent changes in government policy and regulation in relation to the oil and gas industry?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In recent years, major policy turbulence in Bulgaria&#8217;s energy industry has predominantly affected the renewables and coal sectors. Bulgaria faces pressure from the EU to achieve its decarbonization goals and phase out coal-fuelled facilities. Historically, these facilities secured up to 35% or more of domestic power consumption. Few reforms are underway in the oil and gas sectors. New policies and legal frameworks have been introduced concerning hydrogen.<\/p>\n<p>The primary upstream oil and gas law &#8211; the Underground Resources Act &#8211; has been due for significant improvement for several years. However, incumbent governments have yet to produce a new Bill. The potential changes are expected to substantially improve and clarify the terms and procedures for issuing permits and licences, as well as to better differentiate between operational matters concerning different types of minerals.<\/p>\n<p>Currently, the Ministry of Energy is preparing to publish an updated Ordinance regulating concession payments. In the oil and gas sector, a modest increase in concession fees is expected. The concession fees is planned to vary from 3.5% to 35% of production revenue (currently ranging from 2.5% to 30%).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What key challenges currently affect your jurisdiction\u2019s oil and gas industry, and how has the government and\/or industry responded to it? In particular, please comment on the impact of recent geopolitical tensions and any significant regulatory or market developments.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bulgaria&#8217;s major upstream projects\u2014held by Shell, OMV, and NEWMED ENERGY\u2014are all located in the deep Black Sea. Despite the ongoing war waged by Russia against Ukraine, the conflict does not appear to halt or disrupt the plans of the licence holders.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any policies or regulatory requirements relating to the oil and gas industry which reflect\/implement the global trend towards the low-carbon energy transition?\u202f In particular, are there any (i) requirements for the oil and gas industry to reduce their carbon impact; and\/or (ii) strategies or proposals relating to (a) the production of hydrogen; or (b) the development of carbon capture, utilisation and storage facilities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bulgaria&#8217;s main policy aligning with EU decarbonization goals is outlined in the National Energy and Climate Plan until 2030. The Plan does not impose restrictions or conditions on national oil and gas upstream projects. On the contrary, these projects are highlighted as nationally important.<\/p>\n<p>Bulgarian decarbonization policies focus on reforming the power sector\u2014which dominates the downstream gas sector\u2014and improving the carbon footprint of the transport, building, and manufacturing sectors.<\/p>\n<p>Bulgaria has also published a national roadmap for developing hydrogen technologies. The National Recovery and Resilience Plan includes significant investments in hydrogen pilot projects.<\/p>\n<p>The nearly depleted gas reservoir in Galata field, operated by Petroceltic, is considered suitable for conversion into a carbon capture facility. Local private investors have been assessing the project&#8217;s feasibility over the past few years.<\/p>\n<p>To replace coal-fired power production units, Bulgaria plans to increase its nuclear power production capacity.<\/p>\n<p>Finally, experts recognise that Bulgaria is well positioned to explore and develop its geothermal energy potential, including deep resources for electricity generation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3343<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/126198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=126198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}