Firm completes largest oil and gas concession package in Bulgaria
CMS Cameron McKenna in cooperation with Petkova & Sirleshtov Law Office, is very pleased to have advised Melrose Resources plc in the successful signing of two concession agreements for offshore gas deposits in Bulgaria.
The CMS team was led by Sofia based partner, Kostadin Sirleshtov, assisted by Pavlin Stoyanoff, Elitsa Ivanova, Angel Bangachev and Pavel Hristov.
Melrose Resources is a multimillion US dollar oil and gas exploration development and production company with interests in Egypt, Bulgaria, Romania, United States, France and Turkey. CMS current acts for Melrose Resources in Bulgaria, Romania, the UK and France.
During the last eighteen months, the market leading Energy Projects and Construction (EPC) team in Bulgaria, supported by UK relationship partner Eleanor Layton, assisted the client in all legal matters relating to: the registration of discoveries with the Ministry of Environment and Waters of Bulgaria; the application process and the related environmental matters; the negotiations with the Bulgarian Government and with the Ministry of Economy, Energy and Tourism; and with the administrative law matters related to the process.
The two concession agreements will bring enormous benefits to Bulgaria, supplying around 20% of the gas supply needed for the country over a five-year period, and helping to regulate the price of natural gas for domestic customers. Kostadin Sirleshtov commented on the deal: 'Working for Melrose in the region is such a great opportunity and challenge for our team! The negotiations were far from easy and we tried to reach a compromise between the interest of the Bulgarian state and the commercial targets of the leading UK investor in Bulgaria to date. We are pleased to assist for reaching a win-win solution for all involved."
The fields were being officially opened to commercial production by the Bulgarian Prime Minister and the Minister for Economy, Energy and Tourism.
By all standards, this is the largest production concession package signed in Bulgaria to date.