Bulgaria Joins OMV’s Black Sea Exploration Venture

In a notable shift in strategy, the Bulgarian state has taken a direct financial stake in offshore hydrocarbon exploration. OMV Petrom, the Romanian subsidiary of Austrian energy group OMV, announced on January 21 that Bulgarian Energy Holding (BEH) will acquire a 10% participating interest in the Han Asparuh exploration block in the Black Sea. This move marks Bulgaria’s transition from a passive collector of concession fees to an active, cost-bearing partner in the project.

Under the new agreement, OMV Petrom will retain its role as operator with a 45% stake, while its existing partner, Israel’s NewMed Energy, continues to hold 45%. The Bulgarian entry reduces each partner’s share proportionally. Crucially, BEH has committed to funding its 10% share of the ongoing drilling costs associated with the block.

The Han Asparuh license covers a substantial 13,712 square kilometers in Bulgarian waters, situated approximately 200 kilometers east of Varna and south of Romania’s Neptun Deep area. Operations are already underway, with the Noble Globetrotter I drillship commencing the first exploration well, “Vinekh-1,” in December 2025. This initial well is targeting resources at a water depth of 2,000 meters, with a budget of €170 million. Service contracts have been awarded to industry leaders: Halliburton is providing integrated drilling services, while SLB is responsible for well testing. A second exploration well is planned for the block.

Impairments Weigh on Quarterly Results

Separately, OMV disclosed significant non-cash impairments that will impact its fourth-quarter 2025 results. On January 15, the company announced write-downs totaling €700 million. These adjustments are attributed to two primary factors: reduced production volumes in Romania, Tunisia, and New Zealand (€400 million), and charges related to extended production licenses in Romania (€300 million).

The license extensions in Romania, granted by the government in December, came with a substantial increase in onshore royalty taxes of approximately 40%. Furthermore, the group is contending with pressure from declining energy prices. In Q4 2025, OMV’s realized crude oil price averaged $62.40 per barrel, and its average natural gas price fell by 3.2% compared to the previous quarter. The company will release its complete quarterly figures on February 4.

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Strategic Developments in Green Energy and Chemicals

Amid these challenges, OMV has secured positive momentum in its transition initiatives. In early January, the company obtained a €123 million state subsidy for its planned green hydrogen plant in Bruck an der Leitha, Austria. The 140-megawatt facility is scheduled for commissioning by the end of 2027, with an annual production capacity of up to 23,000 tonnes of green hydrogen.

Additionally, two major corporate processes are nearing completion. The formation of a joint venture with Abu Dhabi’s Masdar (51% OMV, 49% Masdar) is in its final stages. Concurrently, the merger of Borealis and Borouge to create Borouge Group International is progressing, which includes the acquisition of Nova Chemicals for $13.4 billion. This transaction is expected to be finalized in the first quarter of 2026.

Key Project and Financial Details:
* Bulgarian Energy Holding acquires a direct 10% stake in the Han Asparuh block.
* OMV Petrom remains operator with 45%; NewMed Energy holds 45%.
* Drilling operations with the Noble Globetrotter I began in December 2025.
* Q4 2025 impairments total €700 million due to lower production and tax changes.
* Green hydrogen plant receives €123 million in state funding.

In equity markets, OMV shares were trading at €48.98, representing a decline of nearly 11% from the annual high of €55 reached in December.