# C_2016073EN.01000301.xml

| 25.2.2016 | EN | Official Journal of the European Union | C 73/3 |
| --- | --- | --- | --- |

25.2.2016

EN

Official Journal of the European Union

C 73/3

---

DECISION No 943

of 1 December 2015

opening a procedure for granting authorisation for the prospection and exploration of oil and natural gas, being underground natural resources as defined in Article 2(1)(3) of the of the Underground Natural Resources Act, in ‘Block 1-24 Kitka’, located in Varna province, and announcing that authorisation will be granted on the basis of a competitive bidding procedure

(2016/C 73/03)

REPUBLIC OF BULGARIA

COUNCIL OF MINISTERS

Pursuant to Article 5(2), Articles 7(2)(8) and 42(1)(1) and Article 44(3) of the Underground Natural Resources Act, and Article 4(1)(1) and Article 16 of the Regulation on the conduct of bidding and tendering procedures for granting authorisation for the prospection and/or exploration of, and awarding concessions for the production of, underground natural resources as defined by the Underground Natural Resources Act, adopted by Council of Ministers Resolution No 231 of 2010,

THE COUNCIL OF MINISTERS HAS DECIDED AS FOLLOWS:

| 1. | A procedure shall be opened for granting authorisation for the prospection and exploration of oil and natural gas in ‘Block 1-24 Kitka’, located in the province of Varna, having an area of 704 km2 and defined by coordinates 1 to 27, as specified in the Annex. |
| --- | --- |

1.

A procedure shall be opened for granting authorisation for the prospection and exploration of oil and natural gas in ‘Block 1-24 Kitka’, located in the province of Varna, having an area of 704 km2 and defined by coordinates 1 to 27, as specified in the Annex.

2

| 2. | The authorisation referred to in point 1 shall be granted on the basis of a competitive bidding procedure under which bidders are not present when the bids are considered. |
| --- | --- |

2.

The authorisation referred to in point 1 shall be granted on the basis of a competitive bidding procedure under which bidders are not present when the bids are considered.

| 3. | The authorisation period for prospection and exploration shall be set at five years from the date on which the prospection and exploration agreement enters into force, with a right to extend this period pursuant to Article 31(3) of the Underground Natural Resources Act. |
| --- | --- |

3.

The authorisation period for prospection and exploration shall be set at five years from the date on which the prospection and exploration agreement enters into force, with a right to extend this period pursuant to Article 31(3) of the Underground Natural Resources Act.

| 4. | The deadline for purchasing the bidding dossier shall be 17:30 on the 120th day following the publication of this Decision in the Official Journal of the European Union. |
| --- | --- |

4.

The deadline for purchasing the bidding dossier shall be 17:30 on the 120th day following the publication of this Decision in the Official Journal of the European Union.

Official Journal of the European Union

| 5. | The deadline for submitting applications to take part in the competitive bidding procedure shall be 17:30 on the 140th day following the publication of this Decision in the Official Journal of the European Union. |
| --- | --- |

5.

The deadline for submitting applications to take part in the competitive bidding procedure shall be 17:30 on the 140th day following the publication of this Decision in the Official Journal of the European Union.

Official Journal of the European Union

| 6. | The deadline for submitting bids in accordance with the bidding dossier shall be 17:30 on the 155th day following the publication of this Decision in the Official Journal of the European Union. |
| --- | --- |

6.

The deadline for submitting bids in accordance with the bidding dossier shall be 17:30 on the 155th day following the publication of this Decision in the Official Journal of the European Union.

Official Journal of the European Union

| 7. | The price of the bidding dossier shall be set at BGN 10 000. The bidding dossier is to be obtained from the Ministry of Energy at 8 Triaditsa Street, Sofia, by the deadline specified in point 4, upon presentation of a payment order. |
| --- | --- |

7.

The price of the bidding dossier shall be set at BGN 10 000. The bidding dossier is to be obtained from the Ministry of Energy at 8 Triaditsa Street, Sofia, by the deadline specified in point 4, upon presentation of a payment order.

| 7.1. | The amount specified in point 7 shall be paid into the bank account of the Ministry of Energy: | BIC of the BNB for payments in Bulgarian currency (BGN) — BNBGBGSD, |
| --- | --- | --- |

7.1.

The amount specified in point 7 shall be paid into the bank account of the Ministry of Energy:

BIC of the BNB for payments in Bulgarian currency (BGN) — BNBGBGSD,

| | SWIFT code of the BNB for payments in foreign currency — BNBGBGSF, |
| --- | --- |

SWIFT code of the BNB for payments in foreign currency — BNBGBGSF,

| | IBAN — ВG94 BNBG 9661 3000 1421 01, |
| --- | --- |

IBAN — ВG94 BNBG 9661 3000 1421 01,

| | BNB (Bulgarian National Bank) headquarters. |
| --- | --- |

BNB (Bulgarian National Bank) headquarters.

| 7.2. | The following should be recorded on the payment order: For the competitive procedure dossier for area ‘Block 1-24 Kitka’, purchased on behalf of the applicant whose name is written compulsorily on the payment order. |
| --- | --- |

7.2.

The following should be recorded on the payment order: For the competitive procedure dossier for area ‘Block 1-24 Kitka’, purchased on behalf of the applicant whose name is written compulsorily on the payment order.

| 7.3. | The person receiving the bidding dossier shall sign a declaration on behalf of the applicant, undertaking to protect the confidentiality of the information contained therein. |
| --- | --- |

7.3.

The person receiving the bidding dossier shall sign a declaration on behalf of the applicant, undertaking to protect the confidentiality of the information contained therein.

| 8. | Applicants wishing to participate in the bidding procedure must fulfil the requirements specified in Article 23(1) of the Underground Natural Resources Act. |
| --- | --- |

8.

Applicants wishing to participate in the bidding procedure must fulfil the requirements specified in Article 23(1) of the Underground Natural Resources Act.

| 9. | The applicant or where the applicant is a grouping, each of its members, must provide a declaration confirming the absence of the circumstances under Article 2 of the Act on economic and financial relationships with companies registered in preferential tax regime jurisdictions, entities/persons related to them and their beneficial owners (ZIFODRYUPDRSTLTDS) (SG No 1 of 2014) in conjunction with § 1 of the Additional provisions, or evidence of the existence of circumstances under Article 4 of ZIFODRYUPDRSTLTDS. |
| --- | --- |

9.

The applicant or where the applicant is a grouping, each of its members, must provide a declaration confirming the absence of the circumstances under Article 2 of the Act on economic and financial relationships with companies registered in preferential tax regime jurisdictions, entities/persons related to them and their beneficial owners (ZIFODRYUPDRSTLTDS) (SG No 1 of 2014) in conjunction with § 1 of the Additional provisions, or evidence of the existence of circumstances under Article 4 of ZIFODRYUPDRSTLTDS.

| 10. | The applicant enterprise or grouping must possess at least the minimum managerial capabilities required for carrying out prospection and exploration activities, and cumulatively comply with the following conditions: |
| --- | --- |

10.

The applicant enterprise or grouping must possess at least the minimum managerial capabilities required for carrying out prospection and exploration activities, and cumulatively comply with the following conditions:

| 10.1. | the applicant or where the applicant is a grouping, each of its members, must provide original references from business partners, and |
| --- | --- |

10.1.

the applicant or where the applicant is a grouping, each of its members, must provide original references from business partners, and

| 10.2. | the applicant or where the applicant is a grouping, each of its members, must provide evidence of professional expertise and experience obtained in managing at least one project for prospection and exploration of mineral resources — oil and natural gas. |
| --- | --- |

10.2.

the applicant or where the applicant is a grouping, each of its members, must provide evidence of professional expertise and experience obtained in managing at least one project for prospection and exploration of mineral resources — oil and natural gas.

| 11. | the applicant enterprise or where the applicant is a grouping, at least one of its members, must have generated a minimum of BGN 4 000 000 total net sales revenue for the three preceding financial years (depending on the date of its establishment). Where the applicant is a grouping which is not a legal person, the requirement set out in this point applies to the grouping as a whole, or |
| --- | --- |

11.

the applicant enterprise or where the applicant is a grouping, at least one of its members, must have generated a minimum of BGN 4 000 000 total net sales revenue for the three preceding financial years (depending on the date of its establishment). Where the applicant is a grouping which is not a legal person, the requirement set out in this point applies to the grouping as a whole, or

| 11.1. | the applicant or where the applicant is a grouping, at least one of its members, must provide a reference from a bank or other financial institution certifying that is has the necessary financial means at its disposal to implement the oil and natural gas prospection and exploration activities in area ‘Block 1-24 Kitka’, or |
| --- | --- |

11.1.

the applicant or where the applicant is a grouping, at least one of its members, must provide a reference from a bank or other financial institution certifying that is has the necessary financial means at its disposal to implement the oil and natural gas prospection and exploration activities in area ‘Block 1-24 Kitka’, or

| 11.2. | the applicant or where the applicant is a grouping, at least one of its members, must submit a letter of intent from a bank or other financial institution regarding the provision to the applicant of the funds necessary for the implementation of oil and natural gas prospection and exploration activities in area ‘Block 1-24 Kitka’. |
| --- | --- |

11.2.

the applicant or where the applicant is a grouping, at least one of its members, must submit a letter of intent from a bank or other financial institution regarding the provision to the applicant of the funds necessary for the implementation of oil and natural gas prospection and exploration activities in area ‘Block 1-24 Kitka’.

| 12. | Applicants' bids shall be evaluated on the basis of the proposed work programmes, resources devoted to environmental protection, bonuses, training, and managerial and financial capacities, as provided for in this decision. |
| --- | --- |

12.

Applicants' bids shall be evaluated on the basis of the proposed work programmes, resources devoted to environmental protection, bonuses, training, and managerial and financial capacities, as provided for in this decision.

| 13. | The deposit for participation in the competition shall be set at BGN 5 000 and is to be paid, before the deadline specified in point 5, into the bank account of the Ministry of Energy: | BIC of the BNB for payments in Bulgarian currency (BGN) — BNBGBGSD, |
| --- | --- | --- |

13.

The deposit for participation in the competition shall be set at BGN 5 000 and is to be paid, before the deadline specified in point 5, into the bank account of the Ministry of Energy:

BIC of the BNB for payments in Bulgarian currency (BGN) — BNBGBGSD,

| | SWIFT code of the BNB for payments in foreign currency — BNBGBGSF, |
| --- | --- |

SWIFT code of the BNB for payments in foreign currency — BNBGBGSF,

| | IBAN — BG75 BNBG 9661 3300 1421 03, |
| --- | --- |

IBAN — BG75 BNBG 9661 3300 1421 03,

| | BNB (Bulgarian National Bank) — Headquarters. |
| --- | --- |

BNB (Bulgarian National Bank) — Headquarters.

| 14. | Applicants who are not admitted to the competitive bidding procedure shall have their deposits reimbursed within 14 days from the date of entry into force of the selection's board decision not to admit their application. |
| --- | --- |

14.

Applicants who are not admitted to the competitive bidding procedure shall have their deposits reimbursed within 14 days from the date of entry into force of the selection's board decision not to admit their application.

| 15. | The successful bidder's deposit shall be reimbursed within 14 days from the signing of the agreement, and the other bidders' deposits shall be reimbursed within 14 days from the publication in the State Gazette of the Council of Ministers' decision to grant authorisation for prospection and exploration. |
| --- | --- |

15.

The successful bidder's deposit shall be reimbursed within 14 days from the signing of the agreement, and the other bidders' deposits shall be reimbursed within 14 days from the publication in the State Gazette of the Council of Ministers' decision to grant authorisation for prospection and exploration.

| 16. | Applications to take part in the competitive bidding procedure and bids under the competitive bidding procedure shall be submitted to the Registry of the Ministry of Energy at: Triaditsa 8, Sofia, in Bulgarian, in accordance with the requirements of Article 46 of the Underground Natural Resources Act. |
| --- | --- |

16.

Applications to take part in the competitive bidding procedure and bids under the competitive bidding procedure shall be submitted to the Registry of the Ministry of Energy at: Triaditsa 8, Sofia, in Bulgarian, in accordance with the requirements of Article 46 of the Underground Natural Resources Act.

| 17. | Bids shall comply with the requirements and conditions specified in the bidding dossier. |
| --- | --- |

17.

Bids shall comply with the requirements and conditions specified in the bidding dossier.

| 18. | The competitive bidding procedure shall take place even if only one applicant is admitted to take part in it. |
| --- | --- |

18.

The competitive bidding procedure shall take place even if only one applicant is admitted to take part in it.

| 19. | The Minister of Energy is authorised to: |
| --- | --- |

19.

The Minister of Energy is authorised to:

| 19.1. | send this Decision for publication in the Official Journal of the European Union; |
| --- | --- |

19.1.

send this Decision for publication in the Official Journal of the European Union;

Official Journal of the European Union

| 19.2. | organise and conduct the competitive bidding procedure. |
| --- | --- |

19.2.

organise and conduct the competitive bidding procedure.

| 20. | This Decision shall be published in the State Gazette and on the Council of Ministers website. This Decision shall be announced in the municipalities of Varna, Beloslav, Avren, Dolni Chiflik and Byala. |
| --- | --- |

20.

This Decision shall be published in the State Gazette and on the Council of Ministers website. This Decision shall be announced in the municipalities of Varna, Beloslav, Avren, Dolni Chiflik and Byala.

| 21. | Appeals against this Decision may be addressed to the Supreme Administrative Court pursuant to the Code of Administrative Procedure within 14 days of its publication in the Official Journal of the European Union. |
| --- | --- |

21.

Appeals against this Decision may be addressed to the Supreme Administrative Court pursuant to the Code of Administrative Procedure within 14 days of its publication in the Official Journal of the European Union.

Official Journal of the European Union

Prime Minister

Boyko BORISOV

For the Secretary-General of the Council of Ministers

Veselin DAKOV

Cabinet Office Director

Veselin DAKOV

---

ANNEX

LIST OF THE BOUNDARY POINT COORDINATES OF ‘BLOCK 1-24 KITKA’

WGS 84 coordinate system

| No | Latitude | Longitude |
| --- | --- | --- |
| 1 | 43°09′38.00′′ | 27°36′24.42′′ |
| 2 | 43°09′38.00′′ | 27°53′50.88′′ |
| 3 | 43°08′41.47′′ | 27°53′50.88′′ |
| 4 | 43°08′41.47′′ | 27°56′24.61′′ |
| coastline |
| 5 | 43°06′12.57′′ | 27°55′24.30′′ |
| 6 | 43°05′55.73′′ | 27°54′26.25′′ |
| 7 | 43°05′04.19′′ | 27°53′25.54′′ |
| 8 | 43°04′00.93′′ | 27°53′41.97′′ |
| 9 | 43°03′23.36′′ | 27°54′28.28′′ |
| coastline |
| 10 | 42°53′23.97′′ | 27°54′02.23′′ |
| 11 | 42°53′23.97′′ | 27°36′24.42′′ |
| 12 | 43°03′24.00′′ | 27°36′24.40′′ |
| 13 | 43°03′24.00′′ | 27°38′18.75′′ |
| 14 | 43°06′36.64′′ | 27°38′18.75′′ |
| 15 | 43°06′36.64′′ | 27°36′24.40′′ |
| excluded area |
| 16 | 43°01′41.74′′ | 27°52′39.73′′ |
| 17 | 43°01′41.74′′ | 27°52′52.18′′ |
| 18 | 43°01′33.65′′ | 27°52′52.18′′ |
| 19 | 43°01′33.55′′ | 27°52′39.73′′ |
| excluded area |
| 20 | 43 00′04.43′′ | 27°42′55.30′′ |
| 21 | 43°00′04.43′′ | 27°43′04.56′′ |
| 22 | 42°59′53.66′′ | 27°43′04.56′′ |
| 23 | 42°59′53.66′′ | 27°42′55.30′′ |
| excluded area |
| 24 | 42°58′24.20′′ | 27°38′49.49′′ |
| 25 | 42°58′24.20′′ | 27°40′12.28′′ |
| 26 | 42°58′00.55′′ | 27°40′12.28′′ |
| 27 | 42°58′00.55′′ | 27°38′49.49′′ |

No

Latitude

Longitude

1

43°09′38.00′′

27°36′24.42′′

2

43°09′38.00′′

27°53′50.88′′

3

43°08′41.47′′

27°53′50.88′′

4

43°08′41.47′′

27°56′24.61′′

coastline

5

43°06′12.57′′

27°55′24.30′′

6

43°05′55.73′′

27°54′26.25′′

7

43°05′04.19′′

27°53′25.54′′

8

43°04′00.93′′

27°53′41.97′′

9

43°03′23.36′′

27°54′28.28′′

coastline

10

42°53′23.97′′

27°54′02.23′′

11

42°53′23.97′′

27°36′24.42′′

12

43°03′24.00′′

27°36′24.40′′

13

43°03′24.00′′

27°38′18.75′′

14

43°06′36.64′′

27°38′18.75′′

15

43°06′36.64′′

27°36′24.40′′

excluded area

16

43°01′41.74′′

27°52′39.73′′

17

43°01′41.74′′

27°52′52.18′′

18

43°01′33.65′′

27°52′52.18′′

19

43°01′33.55′′

27°52′39.73′′

excluded area

20

43 00′04.43′′

27°42′55.30′′

21

43°00′04.43′′

27°43′04.56′′

22

42°59′53.66′′

27°43′04.56′′

23

42°59′53.66′′

27°42′55.30′′

excluded area

24

42°58′24.20′′

27°38′49.49′′

25

42°58′24.20′′

27°40′12.28′′

26

42°58′00.55′′

27°40′12.28′′

27

42°58′00.55′′

27°38′49.49′′

---