The state returns to Heat Supply – Sofia Yet another transfer of ownership on Heat Supply – Sofia between the state and municipality is about to be made. This time the idea is for the Bulgarian Energy Holding (BEH) to acquire a minority share in the company, the Executive Director of Heat Supply – Sofia Stoyan Tsvetanov said. The goal is for the Sofia heating utility to settle a debt of over BGN 200 million to BEH from end-2008. BEH will acquire a minority stake, or up to 49%. Instead of the constant transfer of ownership, the company could have been privatised a long time ago. Thus the necessity to allocate state funding that placed the Sofia heating utility in a privileged position compared to other companies in the sector would have been avoided. It was in 2007 that French Dallda, owner of Heat Supply – Varna, and Czech CEZ, which privatised the Sofia power utility and TPP Varna, were interested in buying the distressed company. There were many other offers throughout the years, but none were accepted. According to Tsvetanov one of the reasons was that this would have increased the cost of the service due to the investments that would have been made.
Source: Capital (03.01.2013)

Bulgarian Energy Holding may acquire minority stake in Heat Supply-Sofia at the expense of some of the company's debt for gas. But this is only one of the variants of solving the problem with the debt of the company to Bulgargaz, said Economy Minister Delian Dobrev. The aim of the deal is not to change the ownership of Heat Supply-Sofia but to provide additional funds for the company to invest in projects for modernization and new cogeneration facilities, he added. Currently, Heat Supply-Sofia has prepared about 20 different projects that are looking for options for financing, Sofia Mayor Yordanka Fandakova added. However, the most important task for the company at the moment is to ensure the heating season, she said. Sofia mayor stressed that the most important for the future of Heat Supply-Sofia are investment opportunities. Addressing the obligations of the company is among the major problems.
Source: Standart (08.01.2013)

Bulgaria Launches Nabucco Pipeline Construction in June 2013 By the end of June 2013 Bulgaria will start the construction of the Nabucco pipeline on its territory, Bulgaria PM Boyko Borissov stated during the first sitting of the cabinet on the project in 2013. "As a rotation chair of the project Bulgaria insists on clear-cut terms," PM Borissov stated. "By the end of June 2013, all construction licences will be issued," Bulgaria's minister of economy and energy, Delyan Dobrev, stated.
Source: Standart (11.01.2013)

Nabucco Pipeline Route Finalized June 2013 The Shah-Deniz-2 Consortium is expected to decide on the exact route of the Nabucco pipeline in European territory by the end of June 2013, Bulgarian Energy Holding President Mihail Andonov said. The agreement between Nabucco International and the potential investors – shareholders in Shah-Deniz-2, is to be signed on January 18th. If the companies in the consortium Shah-Deniz-2 choose Nabucco, as of 2018 Bulgaria will be receiving two billion cubic meters of Azeri natural gas per year through the gas link with Turkey.
Source: Standart (14.01.2013)

A major foreign company has bought documents to take part in a tender for awarding a licence for oil and natural gas exploration in the Bulgarian section of the Black Sea, the country’s energy ministry said. Bids can be placed until May 27, the ministry said in a statement on Saturday. The five-year licence will cover the 4,032 square metre Block 1-22 Teres. In the event of commercial discovery, the concessionaire will be automatically granted permission to produce from the field, Bulgaria’s government said last year.
Source: Capital (21.01.2013)

State gas company Bulgargaz is in the middle of negotiations for the supply of gas from the Azeri field Shah Deniz 2, said CEO Dimitar Gogov. Negotiations have been conducted over two years and a half, and now Bulgargaz and the consortium that develops Shah Deniz 2 have clarified 99% of the conditions for the future delivery. Bulgargaz CEO said that we want all 10 billion cubic meters, which will remain free after the amounts for Azerbaijan and Turkey. "Of course, it is unrealistic to think that we can get all 10 billion cubic meters. So we talk about a volume that would allows us to guarantee consumption in Bulgaria to 2020," Gogov explained. According to estimates, natural gas consumption in the country will increase in the next 10 years and by 2020 it is expected to be around 4.4 billion cubic meters in the pessimistic forecast and nearly 6 billion cubic meters in the optimistic. Expected supply contract with the consortium Shah Deniz 2 is to be signed by the end of this year.
Source: Monitor (28.01.2013)

Andon Rokov Appointed Acting Chair of Bulgaria's Energy Watchdog Andon Rokov has been appointed acting Chair of Bulgaria's State Commission for Energy and Water Regulation (DKEVR) until a replacement for resigned DKEVR head Angel Semerdzhiev is selected. Bulgaria's government approved Wednesday the proposal for the dismissal of DKEVR Chair Angel Semerdzhiev, who filed his resignation on Tuesday. Andon Rokov is a member of DKEVR. He holds a degree in law from the Sofia University 'St. Kliment Ohridski' and has extensive experience in the spheres of energy and commercial law. The press office of the Bulgarian government announced Monday that Semerdzhiev would be dismissed over the delayed preparation and adoption of secondary legislation related to the Third Energy Liberalization Package. Bulgaria's failure to fully transpose the EU internal energy market rules caused the European Commission to refer Bulgaria to the Court of Justice of the European Union. The EC warned that Bulgaria had only partially transposed the Electricity and Gas Directives and proposed a daily penalty of EUR 8488 for each partially transposed Directive. As a result, Angel Semerdzhiev requested an early termination of his term in office as DKEVR Chair in connection with his failure to perform job duties. The application was approved by Prime Minister Boyko Borisov.
Source: Darik Radio (31.01.2013)

Heating Utility in Bulgaria's Shumen Sold to Israeli Company The heating utility in the northeastern Bulgarian city of Shumen has been sold to Israeli company Telemania. The privatization contract for the heating utility was signed Friday between Shumen Mayor Krasimir Kostov and Ronen Zinger, representative of the Israeli company, according to reports of Darik radio. Kostov explained that Telemania undertook to invest a total of EUR 75 M in the heating utility for a period of three years, to maintain a staff of at least 50, and to cover the debts of the company. The Mayor of Shumen said that the utility would supply heating to the residents of the city as of the next heating season. The representative of Telemania assured that the company would take care to pay delayed salaries as a priority. The heating utility in Shumen stopped functioning due to the accumulation of huge debts to state-owned gas supplier Bulgargaz, leaving the residents of the city without central heating in winter.
Source: Capital (04.02.2013)

Sofia and Athens Become Gas Export Competitors In the near future Sofia and Athens may become competitors in the export of Caspian natural gas to Europe. This emerged after the end of Gas perspectives: First regional gas conference, held yesterday at Sofia's Sheraton Hotel Balkan. Greece is planning to receive natural gas from a number of sources in Cyprus and Azerbaijan, as well as from liquefied gas terminals, and export it to Europe, using the interconnection with Bulgaria. This became clear from a statement of Dimitrios Manolis, International Projects Monitoring Director at DEPA S.A. However, Bulgaria's Bulgargaz is also eyeing opportunities to export natural gas to Europe, judging by the statement of its CEO, Mr. Dimitar Gogov. He linked the company's future to an expansion on the European markets. "We are in negotiations with Shah Deniz 2 for the maximum capacity share of ten billion cubic meters of natural gas 2019," Gogov said.
Source: Standart (06.02.2013)

Bulgaria's State-Owned Gas Supplier Gears Up for Expansion - CEO Dimitar Gogov, CEO of state-owned gas supplier Bulgargaz, has said that the company is gearing up for expansion on gas markets. Speaking Tuesday during a conference titleda conference titled 'Gas Perspectives: First Regional Gas Conference', Gogov explained that he would not create obstacles to the liberalization but he would fight with all resources available to retain the company's market share. The CEO of Bulgargaz, as cited by investor.bg, explained that Bulgargaz was one of the companies participating in talks to buy gas from the Shah Deniz 2 consortium. Earlier on Tuesday, Economy and Energy Minister Dobrev reminded that the Shah Deniz consortium was expected to choose by mid-2013 whether to transport Shah Deniz II production via the Nabucco West pipeline or the rival Trans-Adriatic pipeline (TAP). Dobrev noted that the Nabucco West pipeline was the preferred option for Bulgaria, adding that the country would do its best to tip scales in favor of the EU-backed project. Commenting on where Bulgargaz would sell gas, the CEO of the company made clear that the customers would be sought after the completion of the gas grid interconnection projects with Serbia, Romania, Greece, Turkey, or Macedonia. "However, guaranteeing the interests of Bulgarian consumers comes first," he added. Gogov said that the talks with the Shah Deniz 2 consortium would continue regardless of their choice of supply route to Europe. He admitted that the opening-up of the gas market would result in increased competition, adding that the price did not always depend on the presence of more players on the market. "The price is determined by the market, and in Bulgaria there is more demand than supply," the CEO of Bulgargaz stated. He suggested that a number of sectors in Europe had indicated that the counterpoising of large players was not always a good solution for market liberalization "The Shah Deniz 2 consortium itself is an example how large companies unite and the interests of all are preserved," he explained. Ivanka Dilkovska from the Energy Management Institute drew attention to the fact that talks were underway in a number of European countries for decoupling crude oil and natural gas prices. She said that it had been already introduced in France, where 80% of the price was determined by market, adding that the step was about to be adopted in Belgium too.
Source: investor.bg (07.02.2013)

Bulgargaz proposes no change in the price of natural gas Bulgargaz JSC announced on Monday that the estimated price of natural gas for Q2 2013 is BGN 656.47/1,000 cu m (excise duties and VAT excluded), remaining unchanged from the price during Q1 2013. The estimated price reflects the positive trend in the BG lev/US dollar exchange rate, the rising costs of the alternative fuels to natural gas on the international markets and the requirements of the legislative acts regulating prices. The final proposal of Bulgargaz JSC for the price of natural gas, to be in effect as of April 1, 2013, will be announced on March 11. 2013 when the proposal must be submitted to the State Energy and Water Regulatory Commission.
Source: Class (12.02.2013)

Bulgaria's Shumen municipality has warned the executive director of Israeli company Telemania that it will terminate the privatization contract for heating utility Toplofikatsia Shumen EAD at one month's notice. According to a media statement on the website of the northeastern Bulgarian municipality, the Israeli company has violated its obligations under the privatization contract. Telemania has failed to pay a sum of BGN 51 000, the difference between the price of the heating utility and the advance payment submitted by the company. According to the statement of the Shumen municipality, if the Israeli company fails to transfer the sum within a month or submit a bank guarantee, the privatization contract will be considered terminated. Shumen's heating utility stopped functioning due to a debt of BGN 18 M to state-owned gas supplier Bulgargaz, leaving locals without central heating in the winter season 2012/2013, investor.bg reminds. Under the privatization contract, which was announced on February 1, the buyer undertook to invest a total of EUR 75 M in three years, keep a staff of at least 50 employees, and settle or renegotiate the debts of the company to the state, the municipality, the municipal companies, and the heating utility's staff within three months after the signing of the deal. The buyer of the heating utility also undertook to restore heating supply to the residents of Shumen for the 2013-2014 heating season at the latest.
Source: Class (06.03.2013)

Bulgaria's Gas Supplier Proposes 3.22% Decrease in Q2 Prices State-owned gas supplier Bulgargaz has submitted a proposal for a 3.22% decrease in gas prices in Q2, 2013 with Bulgaria's State Commission for Energy and Water Regulation (DKEVR). Bulgargaz proposes a Q2, 2013 price of BGN 635.35 per 1000 cubic meters of natural gas, VAT and excise duty excluded. Bulgargaz argues that the main reason for the price drop is the lower BGN/USD exchange rate. Thee price proposal of Bulgargaz contains a 2% markup – BGN 11.91 per 1000 cubic meters, and BGN 8.09 per 1000 cubic meters to restore uncollected revenues of Bulgargaz. Bulgargaz, a subsidiary of the Bulgarian Energy Holding (BEH), prepares and submits to DKEVR a proposal for prices of natural gas on a quarterly basis.
Source: Capital (12.03.2013)

Bulgargas Proposes 3.22% Gas Price Reduction If Bulgaria’s Energy and Water Regulatory Commission approves the proposal of Bulgargas the price of natural gas in Bulgaria will be reduced by 3.22 percent as of April 1. Currently the natural gas in Bulgaria is sold at BGN 656.47/1,000 cubic meters after its price dropped by over 10 percent in January 2013. This has happened after a new contract was signed with the Russian supplier on November 15, 2012. Bulgargas has proposed to the energy watchdog to bring the price down to BGN 635.35/1,000 c.m. VAT excluded. The new price includes the 2-percent surcharge and the sum of BGN 9.09 that will cover the missed revenues in the previous periods. If DKEVR approves the new tariffs the prices of central heating would not go down. This can happen only if the gas price reduction exceeds 5 percent.
Source: Standart (12.03.2013)

The costs of Heat Supply Sofia for external services exceed BGN 25 million per year, shows the statement provided by the company to the Finance Committee of the Sofia Municipality together with its investment program for this year. Of all costs the company allocated most to heat accountants. The company has given them BGN 6.1 million in 2011. Last year the amount was BGN 6.4 million, and this year it is expected to be BGN 6 million. Costs in 2012 were expected and this year they are only estimates. Among cost accountants, other big expenditure of the company is related to interest on debts to Bulgargaz. In 2011, the supplier has received BGN 4.6 million, and in 2012 – BGN 6.6 million. In this year interest rates are expected to reach BGN 8 million, The report does not include interest on old debts of the company, which have been transferred to the Bulgarian Energy Holding.
Source: Sega (13.03.2013)

Israeli company Teelemania is on the verge of stopping its investment in Bulgaria to the amount of more than EUR 75 million. The company won privatization procedure of the municipal Heat Supply Shoumen. Telemani was the sole participant that issued offer and submitted a deposit for participation in the announced by the municipality of Shumen procedure for privatization of the company. The deal is to the amount of BGN 100 thousand, as the foreign company paid in advance half of the sum. The company engaged in taking up Heat Supply Shoumen’s obligations, assessed to BGN 18 million. Despite the signed agreement, though worried about the critical situation in the country, Israelis have not finalized the deal till now. In accordance with the contract the municipality of Shoumen will make a month notice, with which it will notify the investor that if within one month "it does not make all that is required under the contract" municipality will terminate it.
Source: econ.bg (22.03.2013)

Gas Prices in Bulgaria to Remain Unchanged by end-2013 "No big fluctuations in gas prices for end consumers are expected by the end of the year," Bulgargaz CEO, Dimitar Gogov, reported. Starting April 1, 2013, prices of natural gas will drop by 3.89%, in line with calculations of the State Commission for Energy and Water Regulation, instead of the 3.22% price drop proposed by Bulgargaz. Mr Gogov made it clear on Tuesday that the 3.89% price drop would technically leave Bulgargaz without a profit. He explained that the higher gas price decrease would be implemented at the expense of Bulgargaz' markup, which had been reduced to 1.26% from 2%. The CEO of Bulgargaz made it clear that the other factors which had made the price drop possible were the crude oil price of USD 110 per barrel and the lower USD-to-BGN exchange rate. Asked to comment on gas prices in the third and fourth quarter of 2013, he said that tariffs were expected to register a slight increase of 0.07% from July 1 as a result of an increase in the USD-to-BGN exchange rate, while from October 1, gas rates were expected to drop by 0.5%. Gogov assured that the fluctuations were minimal and would most probably not affect prices for end consumers.
Source: Standart (27.03.2013)

Bulgaria's energy holding co rejects single bid for 250 mln euro loan The Bulgarian Energy Holding (BEH) said it turned down a bid by Deutsche Bank, the single candidate to extend a 250 million euro loan to the company, after it failed to meet the tender requirements. Deutsche Bank was disqualified because it failed to submit a document certifying it had paid the required guarantee, BEH said in a statement on its website last week. The tender procedure was canceled. BEH plans to borrow the money to refinance a credit taken out by one of its units, the National Electricity Company. Another option to raise the money which the holding company is contemplating is a bond issue. It has received six offers for an advisor to the planned issue. BEH (www.bgenh.bg) incorporates assets of Bulgaria's sole nuclear power plant Kozloduy, gas monopoly Bulgargaz, gas transmission system operator Bulgartransgaz, telecommunications operator Bulgartel, the National Electricity Company and its wholly-owned system operator Electricity System Operator, coal-fired power plant Maritsa East 2 and the Maritsa East coal mines.
Source: mediapool.bg (16.04.2013)

State-owned gas supplier Bulgargaz has suggested that gas prices in Q3, 2013 should remain unchanged from Q2, 2013. Bulgargaz has an obligation to publish its gas price forecast one month before its submission with the State Commission for Energy and Water Regulation (DKEVR). Bulgargaz explains its proposal with the trends in the BGN/USD exchange rate and the prices of alternative fuels on international markets. Gas prices dropped by 3.89% from April 1, 2013 after a reduction by 9.8% introduced in January.
Source: Trud (13.05.2013)

Bulgarian energy holding has uncollected debts from its subsidiaries to the amount of over BGN 437 million. This is evident from the company report for the first quarter of the year. Among the largest debtors are as follows: National Electricity Company (NEC) and Bulgargaz. Due to shrunk revenues, profit of the holding is by BGN 1.5 million smaller, as compared to the same period last year. BEH is composed of the following companies: TPP Maritsa iztok 2, Mines Maritsa Iztok, Bulgartel, Bulgartransgaz and Nuclear Power Plant Kozloduy.
Source: Trud (14.05.2013)

The Corporate Commercial Bank, the Central Cooperative Bank, Investbank, UBB, UniCredit Bulbank, Raiffeisenbank are the financial institutions managing funds of state companies, 24 Chasa daily reveals. Standart daily specifies that the number of these banks is 11 and adds the names of Postbank, First Investment Bank, D Commercial Bank, CIBank and Bulgarian-American Credit Bank. Some 41 of state companies have deposited too much of their money into only one bank, research by Bulgarian ministries revealed. Some 59.44% of money of NEC, 96% of money of Bulgartransgaz, 88.20% of BEH and 90.85% of deposits of Bulgargaz are managed by the Corporate Commercial Bank. Five companies related to the Ministry of Economy have large deposits in the Central Cooperative Bank. 42.54% of the money of Kozloduy NPP is deposited in Investbank. Money of BDZ Passenger Services is managed by UBB and Eurobank, money of BDZ Freight Railway Services is managed by the Corporate Commercial Bank, 61% of the money of Bulgarian Posts is managed by UniCredit Bulbank, while 91.95% of the money of Bulgarian Port Infrastructure Company is managed by the Central Corporate Bank.
Source: Standart (23.05.2013)

Public provider Bulgargaz New is preparing to withdraw new large loan. The company needs USD 150 million to purchase natural gas. The company, which has worked for years at a loss for determined lower prices of natural gas in 2011 by the state regulator, has withdrawn a loan to the amount of BGN 80 million from CCB. Still the money is not enough. The Company has a debt towards its mother company BEH, as well. The new loan will most likely be used by Bulgargaz for filling up the emptied storage in Chiren. Quantities stored there are used in the winter
Source: Trud (23.05.2013)

OMV sells 9.0% stake in Nabucco West to GDF SUEZ Austria's OMV sold some 9.0% in Vienna-based Nabucco Gas Pipeline International (NIC) to French power giant GDF Suez, after it recently took over Germany's RWE share in the project company, OMV said on Tuesday. "Closing of the transaction is subject to certain conditions and expected to occur in H2 2013," OMV said in a statement. The parties to the deal did not disclose the purchase price. In April, RWE sold its 17% stake in NIC to OMV. Adding France as a new partner is a clear sign of the pan-European support for Nabucco West, the statement added. Following closing, NIC is owned by Bulgaria's BEH, Turkey's BOTAS, Hungary's FGSZ, GDF SUEZ, OMV and Romania's Transgaz. NIC was set up in 2004 to develop, construct and operate the Nabucco pipeline, which was originally planned to start at the Georgian-Turkish border but was later downsized. The shorter 1,300 kilometre Nabucco West pipeline will instead start at the Turkish-Bulgarian border and bring Caspian region gas via Bulgaria, Romania and Hungary to the vicinity of the gas hub at Baumgarten, near Vienna. Nabucco West is competing with the rival Trans Adriatic Pipeline to deliver gas from the Shah Deniz II field. The Shah Deniz group, led by BP and Norway's Statoil, has said it will announce their pick by the end of June. Last week the governments of Austria, Hungary, Romania, Bulgaria and Turkey signed a joint declaration confirming their commitment to the Nabucco West project.
Source: Darik Radio (29.05.2013)

Duties of Heat Supply Sofia exceeds BGN 600 million Duties of Heat Supply Sofia in 2012 rose nearly by 10 percent to BGN 603.97 million.The reason is mainly increase in short-term debt to Bulgargaz that has gone up from BGN 160 million in 2011 to BGN 220 million in 2012; while the longer-term debt to the gas supplier is reduced threefold - from BGN 32 million to BGN 10 million. There are changes in the way in which Heat Supply Sofia pays gas. While in 2011 the gas was prepaid two months ahead in 2012 – the procedure took place three months in advance. Heat Supply Sofia has a positive financial result, and the funds used for investment and repayment of old debts. In 2008 the company was a loss of BGN 63 million, in 2009 – BGN 100 million, while in 2012 the company was at a profit to the amount of BGN 3 million.
Source: Dnevnik (30.05.2013)

Bulgargaz, a subsidiary of Bulgarian Energy Holding (BEH) offered the State Energy and Water Regulatory Commission to tie the natural gas price for the third quarter of 2013 at BGN 630 per 1,000 cubic meters, the company said. The price is without VAT and excise duty. It represents a decrease by 0.15% (BGN 0.94 per 1,000 cubic meters) compared to the current price. Proposal of Bulgargaz is in accordance with the requirements and conditions of the Ordinance to regulate gas prices, the company added. The state watchdog is to consider the proposal for the price of gas and to come with pre-decision, as after public discussion a final decision will be taken.
Source: Class (11.06.2013)

Bulgarian Watchdog to Tackle Energy Prices by Upping Export Bulgaria's State Commission for Energy and Water Regulation (DKEVR) will strive to stimulate export in order to preserve current prices of electric energy. The statement was made Tuesday by DKEVR member Elenko Bozhkov. Bozhkov further informed the energy watchdog will attempt to increase export in order to solve the issue with low consumption and surplus production of electricity. "The situation is not that great. We export about 100-150 MWh and the transit of electricity is about 250 MHh – 1.5 B KWh so far this year. The regulator wants to enable export of 5 B KWh," said Bozhkov. He explained export will be stimulated by eliminating part of the hurdles stemming from the transit tax, which includes the "green" and the "brown" supplement to purchase electricity from renewable energy sources and cogeneration plants (combined production of heat and electric power) of Thermal Power Plants, TPP, and of some industrial enterprises. The new DKEVR head, Angela Toneva, explained the watchdog was using a new mechanism of forming prices that would be officially introduced by the end of the week. "We hope it won't harm anyone; we count on understanding from power utilities, but we pledge that prices of heating will not go up due to electricity prices," said she. A new price formation methodology was prepared by the team of caretaker Economy and Energy Minister, Asen Vasilev. It foresees a 4-fold decrease of the expensive "brown" energy (cogeneration power) in the electricity mix by lowering its mandatory purchasing quota. One of the ways to achieve this is to purchase from TPP's only the electric power that is produced by highly-effective installations, which in the case of Sofia's heating utility would mean minus BNG 100 M in annual revenue. Toneva's predecessor, Evgenia Haritonova, who resigned recently, said the above would mean increasing the price of heating, as the heating utilities counted mostly on "brown" energy revenues to maintain their prices at a stable level. High electricity and heating bills were among the grievancies that sparked the January-February 2013 protests in Bulgaria that toppled the cabinet of former PM Boyko Borisov and led to snap elections in May.
Source: Capital (12.06.2013)

Bulgaria to Transit 45% of Russian Gas to Europe About 40-45 percent of the entire gas volume that Russia exports to Europe will be transited via Bulgaria, experts comment. This will be a fact after the South Stream pipeline is completed a starts working to capacity. Then Bulgaria will be transiting additional 63 billion cubic meters a year of Russian gas replenishing the volumes currently exported to Turkey, Greece and Macedonia, the customers of Gazprom. Apart from regular transit fees that Gazprom will start paying to Bulgaria in 2015 when the South Strem is set in operation Bulgaria will gain a very advantageous geopoplitical position on the Balkans and in Europe. This will be a benefit for Bulgaria during the negotiations with the other countries on the political and diplomatic level, experts believe. The purely economic benefits are not to be underestimated either. The economic effect of the South stream will be evident already by the end of 2013, when the construction works will be started on the Bulgarian territory.
Source: Standart (13.06.2013)

The biggest Bulgarian companies in 2012 Lukoil Neftochim Bourgas again tops the list of Bulgaria’s biggest companies - "Capital 100". Results for the seventh consecuitive edition were announced at a special event on Wednesday. In 2012 revenues of the old new leader has increased by 22% and reached BGN 8.2 billion. For the last three years the company has reported double-digit growth in its business (23% in 2011 and 31% in 2010). Lukoil Bulgaria, which trades with fuels in the country ranks third in the rating, despite reported growth of sales by 3% to BGN 3.6 billion. For a second consecutive year Aurubis Bulgaria is announced for the seond biggest company in the country. Its revenues have srunk by 8% to BGN 4.3 billion, due to planned repair in the autunmn. Top ten is complemented by National electricity company, Bulgargaz, Omv Bulgaria, Overgas, Nafteks petrol, CEZ electro Bulgaria and Kaufland Bulgaria
Source: Capital (27.06.2013)

Bulgaria’s State Energy and Water Regulatory Commission (SEWRC) decreases the price of natural gas for end-consumers by 0.15% for the third quarter of 2013 as of Monday, July 1. The price of natural gas per 1,000 cubic meters (VAT not included) is now BGN 630. This was the proposal of state-run Bulgargaz operator, too, which said that the company was ready to cut the gas price by around 0.15%.
Source: Capital (01.07.2013)

Bulgaria Could Be 1st EU Country to Buy Gas from Azerbaijan The scrapping of Nabucco West does not mean that Azerbaijan has given up plans to deliver natural gas to Bulgaria, according to state oil and gas company SOCAR vice-president Elshad Nasyrov. Bulgaria can even become the first EU member state to purchase gas from Azerbaijan, said Nasyrov, as reported by the Azerbaijani website abc.az. The executive was commenting this week's decision by the consortium operating Azerbaijan's rich Shah Deniz field to scrap the Nabucco project and opt for the Trans Adriatic Pipeline instead. Nabucco West was to pass from Turkey to Bulgaria, Romania, Hungary and Austria, while TAP is designed to deliver gas through Greece and Albania to Italy. "There is a connecting gas pipeline between Greece and Bulgaria. If this proves technically possible, this pipe can be fed with Azerbaijani gas even at the first stage," stated Nasyrov. The Bulgaria-Greece connection is not yet ready, but both countries are working on it, with Bulgarian President Rosen Plevneliev describing the project Friday as one of "strategic importance." According to SOCAR vice-president Nasyrov, the construction of a direct connection between Bulgaria and Turkey would be "technically complicated and hardly economically efficient." Bulgaria and Azerbaijan have already negotiated the future purchase of 1-2 B cub. m. of Azerbaijani natural gas per year.
Source: Class (01.07.2013)

The National Electric Company (NEC) may have to pay a penalty of BGN 9000 per day for delays in its EU obligation to split transmission systems, Minister of Economy Dragomir Stoynev warned. The deadline for this expired yesterday and the obligation was not fulfilled due to delays of the interim government, he said. Stoynev estimated that the fine could amount to approximately BGN 300,000 per month, equalling to 2000 minimum pensions. Due to the unacceptable delays by the previous management at this stage separation is impossible, the minister explained. He announced that he was ready to sort out the situation in three months by dividing the Energy System Operator (ESO) from NEC. The minister also disapproved that his caretaker predecessor is now among the protesters who rage against the current government and added that with BGN 1.9 billion obligatioms, NEC is in extremely hard financial condition.
Source: Standart (02.07.2013)

European Commission Opens Proceedings against Bulgarian Energy Holding The European Commission announced it has opened formal proceedings against Bulgarian Energy Holding and its subsidiaries Bulgargaz and Bulgartransgaz for an alleged hindering of competition. The European Commission will investigate whether Bulgarian Energy Holding (BEH), its gas supply subsidiary Bulgargaz and its gas infrastructure subsidiary Bulgartransgaz might be hindering competitors from accessing key gas infrastructures in Bulgaria, in breach of EU antitrust rules. An opening of proceedings does not prejudge the outcome of the investigation. The Commission has concerns that the Bulgarian energy incumbent BEH and its subsidiaries may be abusing their dominant market position on the natural gas markets in Bulgaria, in breach of Article 102 of the Treaty on the Functioning of the European Union (TFEU). In particular, the Commission has concerns that these companies may be preventing potential competitors from accessing the Bulgarian gas transmission network and the gas storage facility by explicitly or tacitly refusing or delaying access to third parties. In addition, these companies may be preventing competitors from accessing the main gas import pipeline by reserving capacity that is consistently not used, without releasing it on the market. “Without access to this key infrastructure, it is impossible for any companies to compete with Bulgargaz on the Bulgarian gas supply markets,” the commission said in an official statement. It points out that such practices, if established, restrict competition and may lead to less choice and worse gas supply conditions, ultimately to the harm of EU consumers.
Source: Dnevnik (08.07.2013)

South Stream construction to employ 6,000 ''Overall, the South Stream project will create 6,000 jobs in Bulgaria. The construction itself will employ 2,500, and the rest will add up from the workers of the supply and service units'', South Stream Bulgaria CEO Georgi Gegov informed. According to the documentation of the project, at least 16 specifications will be sought in relation to the construction of the Bulgarian part of the pipeline. When it comes to the operation, the South Stream will continuously employ 200 Bulgarians at the 3 compressor stations located in Bulgaria: KS Varna, KS Lozenets and KS Rasovo. In total, there will be 8 compressor stations in Europe. There was a public consultation on the topic in Varna, the 25th of its kind in a row in the country. The main emphasis was the assessment of the environmental impact / EIA / of the South Stream, which passed in a heated discussion. The debate was opened by Ivan Portnih, the new mayor of the city. The project company, true to the principle of hearing all the parties, insisted on dialogue with the people, who were impatient with their questions. The constructors reassured the public that the noise of the compressor station near Varna, where the 4 gas pipes will pass, will not exceed the norms.
Source: Standart (17.07.2013)

The projected decline in revenues of Heat-Supply Sofia by BGN 59.3 million provided by SEWRC will affect payments for gas to Bulgargaz. CEO of the company Stoyan Tsvetanov also noted that the reduction in depreciation expenses by BGN 17 million in facilities from the 60s of the twentieth century will degrade the quality of heat supply. Reduction in the prices of heating will lead all supply companies to the brink of survival, said the chair of the Bulgarian District Heating Association - Iliya Nikolaev. According to his deputy and head of Heat-Supply Pleven Valentine Terziiski, draft of the regulator will lead all companies to negative results, and can lead to bankruptcies.
Source: Standart (24.07.2013)

South Stream - Bulgaria with new management Project company South Stream - Bulgaria has new management. The changes apply only to the Bulgarian part of the Board of Directors of the company that will build the Bulgarian section of the eponymous pipeline. Released from their positions are CEO Georgi Gegov and members of the Board of Directors Boris Todorov and Mihail Andonov, who until recently was head of BEH. Their place in the management of South Stream - Bulgaria were taken by the current head of BEH Boyan Boev, Yordan Zhelev, who is a manager at Bulgargaz and as Executive Director of the project company was appointed Ilia Ivanov. Castling somewhat surprised people in the gas industry, who commented that the old management had been doing well with their duties.
Source: Standart (04.09.2013)

Petroceltic Announces Boost of Production in Bulgaria Oil and gas mining company Petroceltic has announced that it has completed a “tieback” on the production well at the Kiliakra gas field in offshore Bulgaria. This means it has connected the well to its existing production facility at the site, turing it into a profitable asset, Irish Independent informs. It is now connected to three fields, the others known as Galata and Kavarna. Once levels settle, the three should produce a combined 30,000 cubic feet per day of gas. “Bulgaria generates a significant proportion of the company’s revenues and we remain committed to investment in the country. Elsewhere in the region we look forward to results from the multi-well exploration drilling campaign which has recently commenced in Romania,” Brian O’Cathain, Petroceltic’s chief executive, commented, as cited by The Irish Times.
Source: Capital (17.09.2013)

Bulgaria Seals Deal to Purchase Azeri Gas Bulgargaz, Bulgaria's sole public supplier of natural gas has signed a deal with Azeri's consortium Shah Deniz for the purchase of natural gas for a period of 25 years. The import from the Shah Deniz field, the largest natural gas field in Azerbaijan, will not commence before 2019. Under the deal, Bulgargaz is expected to import 1 billion cubic meters annually, reports the Bulgarian National Radio. The clauses in the contract will become effective upon the adoption of the investment decision for the second phase of Shah Deniz II. This project will include an additional offshore gas platform, subsea wells and expansion to the gas plant at Sangachal Terminal, at an estimated cost of at least USD 10 B. As early as the beginning of 2013, Bulgargaz's CEO, Dimitar Gogov, announced negotiations for the purchase of Azeri gas have been set in motion. Deliveries to Bulgaria have been hurdled, however, because Shah Deniz II rejected the use of the Nabucco West pipeline. The Azeri gas is expected to come through the Transatlantic line, which passes through Greece and reaches Italy. Bulgaria will use the interconnectors with Greece and Turkey, which are yet to be built. The plans for them are to be finished next year. This contract is the first real diversification of natural gas sources and the routes for its delivery to the Bulgarian market. It is expected that it will expand the scope of services provided by Bulgargaz and increase security of supplies for Bulgarian consumers.
Source: Darik Radio (20.09.2013)

Bulgragaz expects clients for the natural gas from Gazprom and from Azerbaijan: CEO Bulgargaz hopes after 7-8 years to have enough clients for the natural gas from both Gazprom and Shah Deniz consortium. That is what chief executive officer (CEO) of Gazprom Dimitar Gogov told journalists, a reporter of FOCUS News Agency announced. Dimitar Gogov said that agreement contracted with Shah Deniz is for gas produced in Azerbaijan and owned by the consortium. “This is gas which will be produced under the so-called production phase Shah Deniz 2 from the increase of the production of the consortium as of 2019,” he specified and added that in both agreements with Gazprom and Shah Deniz 2 there are clauses that provide for re-negotiation of the gas price, but this should be discussed at a round-table discussion first.
Source: Agency Focus (25.09.2013)

Price of heating to remain unchanged until the end of the year Prices for heating, hot water and gas will probably remain unchanged in the last quarter of the year, it became clear during the public hearing on the subject by the State Energy and Water Regulatory Commission. The final decision on prices will be taken at a closed meeting on September 27. Bulgargaz Executive Director Dimitar Gogov predicted that the price of the natural gas will stay the same also in the first quarter of 2014, provided there are no abrupt changes in the prices of alternative fuels and the dollar-euro ratio.
Source: Standart (25.09.2013)

A private investor will revive "Himko" A private investor has the strong will for "Himko" in Vratsa. The recovery of the fertilizer plant is among the priorities for development of the region, which the governor of the city Ventzislav Vasilev presented to the Prime Minister Oresharski. Neither, however, did not reveal who the investor is in order not to scare him. "I liked the idea, it is realistic, but that does not mean it is easy to implement," said Oreshrski. According to him, it is worth working on it. In his words, part of the production can really go with the help of private investors. "Himko" finally stopped for more than ten years. Because of the accumulated debts of over 130 million Levs, mainly to "Bulgargaz" and NEC, the company went bankrupt. Source: blitz.bg
Source: Other (30.09.2013)

Bulgaria-Turkey Gas Grid Interconnection Delayed until 2019 The implementation of the Bulgaria-Turkey gas grid interconnection project has been delayed and it will be completed no earlier than 2019, according to Ivan Ayolov, Deputy Minister of Economy and Energy. Speaking Thursday during a conference titled "Natural gas – infrastructure and services" organized by the Bulgarian Federation of Industrial Energy Consumers, Ayolov suggested that the government had inherited gas projects which had not been developed to the stage they were supposed to have reached. He informed that the construction of the gas link with Romania was to be wrapped up in end-October, after which the facility would undergo tests. According to reports of energy news portal 3e-news.net, Kiril Temelkov, CEO of state-owned gas transmission operator Bulgartransgaz, vowed that the Bulgaria-Romania gas grid interconnection would start functioning by end-2013. Ayolov also informed that small progress had been registered with the Bulgaria-Greece gas link but the implementation of the Bulgaria-Serbia gas grid interconnection project had been fast-tracked, especially after the visit of Serbian Energy Minister Zorana Mihaylovic. Bulgaria's Deputy Economy and Energy Minister specified that the land expropriation procedures for the Bulgaria-Serbia gas link and the selection of a designer were to start by end-October, thereby allowing the launch of construction works in May 2014 and the completion of the project by 2017.
Source: Standart (04.10.2013)

TransAtlantic Petroleum to spud Deventci-R2 well in Bulgaria in Oct International oil and natural gas company TransAtlantic Petroleum said it expects to spud in October the Deventci-R2 well in Bulgaria, where it holds 50% working interest. The Deventci-R2 will be a directional exploration well targeting the Dolni Lukovit zone at a depth of approximately 14,500 feet, TransAtlantic said in a statement on its website on Wednesday. In August TransAtlantic Petroleum entered into a farmout agreement with oil and gas investment company Koynare Development Ltd. (KDL) for the assignment of the 50% interest in Bulgaria's Koynare Concession Area. The company holds interests in developed and undeveloped properties in Turkey and Bulgaria. Bulgarian news portal 3e-news reported on Thursday that state-owned gas monopoly Bulgargaz has entered into a natural gas supply agreement with TransAtlantic Petroleum. Gas deliveries from the Koynare and Deventci (Deventsi) areas, near the northern Bulgarian town of Cherven Bryag, are expected to start by the beginning of 2015, the news portal quoted Bulgargaz executive director Dimitar Gogov as saying.
Source: Darik Radio (07.10.2013)

EC may fund 11 Bulgarian energy infrastructure projects by 2020 The European Commission (EC) adopted a list of 250 energy infrastructure projects, which may receive funding of up to EUR 5.85 billion from the Connecting Europe Facility between 2014 and 2020. The projects will benefit from accelerated licensing procedures but should meet four requirements: at least two EU member states should benefit from them; they should develop energy markets and competition; they should improve the diversification of energy supply; and they should reduce carbon emissions. The list includes 11 Bulgarian energy projects, such as new electricity interconnections, gas interconnections, and expanding Chaira Hydro Power Plant, Capital Daily and Duma daily explain. EU Energy Commissioner Gunther Oettinger said: "We have to make sure that our limited funds are used wisely and that EU money goes where it can create most benefits to European consumers. With this list of energy infrastructure projects and their accompanying benefits we also hope to attract more investors."
Source: National television (15.10.2013)

Bulgaria's BEH Raises EUR 500 M from Bond Issue Bulgaria's state energy holding company BEH has raised EUR 500 M, the company announced as the early signing for its bond issue on international market was wrapped up. The company initially planned a EUR 250 M bond issue, needed to refinance debt which matures in May. The bond issue, which will cover the bridge financing, is for five years with an interest rate of 4.287%. BEH was incorporated in 2008 with a decision of the then ruling Socialist-led government. BEH EAD is a shareholding company with 100% state owned participation. The Holding includes Mini Maritsa Iztok EAD, Maritsa East 2 TPP EAD, Kozloduy NPP EAD, NEK EAD, Electricity System Operator EAD, Bulgargaz EAD, Bulgartransgaz EAD and Bulgartel EAD. All companies, brought together in the holding structure, preserve their operational independence and licenses, as they are all owned and directly subordinated to the corporate center BEH EAD. The Bulgarian Energy Holding EAD is one of the largest companies in the region, and national energy leader. Bulgaria tapped last summer international markets to raise funds to repay the first tranche of about EUR 835 M (USD 1.07 B) in 11-year Eurobonds, which matured on January 15, 2013.
Source: Capital (04.11.2013)

BEH dismisses the CEO of Bulgargaz Dimitar Gogov Bulgarian Energy Holding decided to dismiss the CEO of Bulgargaz Dimitar Gogov, bTV. The official decision has not been confirmed yet by the Ministry of Economy and Energy and the Bulgarian Energy Holding. A declaration has already been filed at the Registry Agency by the directors of BEH for the former regional director of the National Revenue Agency – Vidin Shishman Chaushev to be assigned on the released post.
Source: Agency Focus (11.11.2013)

Dimitar Gogov, former CEO of state-owned gas supplier Bulgargaz has been replaced with Shishman Chaushev, former director of regional National Revenue Agency branch. Dimitar Gogov, former CEO of state-owned gas supplier Bulgargaz who was surprisingly discharged from his post on Friday, confirmed himself for BNR that he is no longer chief executive of Bulgargaz and that his successor on the post will be Shishman Chaushev, former director of National Revenue Agency regional office in Vidin. Gogov also said that he was not informed about the decision for his replacement, reports BNR. The decision made by The Bulgarian Energy Holding (BEH), an enterprise which brings together all state-owned energy companies is yet to be confirmed officially.
Source: Trud (11.11.2013)

Heat Supply Sofia’s revenues go for payments to Bulgargaz National Electricity Company has transferred about BGN 16.5 million to Heat Supply Sofia. Next week about BGN 4.5 million is also expected to be paid back to Bulgargaz in order to be settled part of the obligations to the company. Under the new contract debts to Bulgargaz are assessed at about BGN 33 million. The same is the sum that NEC owes to Heat Supply Sofia. There is a plan of deferred payment of obligations to Bulgargaz and all cash resources are directed to its implementation. For two years registered natural gas was to the amount of about BGN 1.5 billion, but for the last three years will increase in the amount has been reported.
Source: investor.bg (12.11.2013)

Bulgargaz seeks no change in Q1 2014 gas prices Bulgaria's gas monopoly Bulgargaz said on Thursday it has proposed that the price local consumers will pay for natural gas in the first quarter of 2014 should remain unchanged at the end-2013 level. The company proposes keeping a price of 630 levs per 1,000 cubic metres for the first three months of 2014, net of value added tax and excise duties, it said in a statement published on its website. The price adjustment, made on a quarterly basis, must be approved by the Bulgarian energy regulator to take effect. Bulgaria imports almost all the natural gas it needs from Russia through a pipeline crossing the territories of Ukraine, Moldova and Romania.
Source: 24 chasa (15.11.2013)

Management Team of Bulgarian Stock Exchange to Change in Jan 2014 The management team of the Bulgarian Stock Exchange will be changed in two months, according to the agenda of the general shareholders' meeting scheduled for January 14, 2014. The meeting is initiated by Bulgaria's Finance Ministry, which holds a 50.05% stake of the capital of the Bulgarian Stock Exchange (BSE). The only point on the agenda of the upcoming general meeting of shareholders of the BSE is changes to the Board of Directors, according to dnevnik.bg. The Board of Directors is currently headed by Asen Yagodin, who also headed the Bulgarian Development Bank (BDB) until recently. The Deputy Chairman of the Board of Directors is Vasil Golemanski, Ivan Takev is Chief Executive Officer, and Lyubomir Boyadzhiev and Georgi Balgarski are members of the Board of Directors. Meanwhile, speaking Monday at a conference on the access of Bulgarian businesses to financial instruments offered by international financial institutions, Deputy Prime Minister Daniela Bobeva confirmed that the privatization procedure for the Bulgarian Stock Exchange, which had been suspended by the center-right GERB government, had been renewed. She said that a strategic investor was sought for the BSE that would revitalize the capital market in Bulgaria. Bobeva, as cited by the Bulgarian Telegraph Agency, informed that the Central Depository would also be privatized. She also made clear that the administrative burden would be substantially reduced to encourage the listing of Bulgarian companies on the BSE.
Source: investor.bg (19.11.2013)

Bulgarian heating utilityHeat Supply Shumen goes into court insolvency Heating utility Heat Supply Shumen has been forced into insolvency due to overdue debts to Bulgargaz for a total of BGN 18.5 million. The court declared the company insolvent as of January 1, 2009 and opened an insolvency procedure, according to a decision posted earlier this month on the Shumen district court’s website. The court has imposed an attachment on Heat Supply Shumen’s assets as a security for its unpaid debts, the decision showed. The last payment the company made to Bulgargaz was in January 2011 in the amount of BGN 74,000, the notice showed. A meeting of the company’s creditors will be held on December 12, 1213. Bulgargaz entered into an agreement with Heat supply Shumen in November 1998 to supply the company with natural gas until the end of 2010. However, the Shumen heating utility started delaying payments and then ceased them completely. Some BGN 1.95 million of the company’s debt are in the form of interest due to the delay.
Source: 1kam1.com (26.11.2013)

Bulgarian municipal utility Toplofikatsia Shumen goes for sale for second time The Shumen municipal council has opened a second privatization procedure for its heating utility, Toplofikatsia Shumen, for an initial 10,000 levs ($6,955/5,113 euro), some 10% of the price it was unsuccessfully sold earlier this year, the Shumen municipality said on Thursday. The municipality launched the tender for the heating utility after the Israeli company Telemenia, who bought Toplofikatsia Shumen at the first auction earlier this year, failed to make the payments after the purchase, a Shumen public relations officer confirmed for SeeNews over the phone. Israeli engineering, procurement and construction company Telemenia bought the Shumen heating utility at the beginning of February, Capital Daily reported then. The company had to guarantee the supply of heating for the 2013-2014 season and to invest some 75 million euro in the utility three years after the purchase. Telemenia, however, reconsidered its move and withdrew from the deal just a couple of months after signing it. Bulgaria has already sold the heating utility companies in most of its big cities in an attempt to further liberalize its energy market after joining the European Union on January 1, 2007. Toplofikatsia Shumen was forced into insolvency earlier this month due to overdue debts to Bulgargaz for a total of 18.5 million levs. The court has imposed an attachment on Toplofikatsia Shumen’s assets as a security for its unpaid debts.
Source: investor.bg (29.11.2013)

An influx of capital was the obstacle for complying with the regulation for deposits A sudden influx of capital in the end of November is the excuse of the major companies with state share from the energy sector in front of the Bulgarian Ministry of Economy and Energy, when they were asked why their money were still concentrated in one single bank. This is in breach with the regulation effective from December 4 and demanding more balanced distribution of capitals. Days before this date reports of companies like the Bulgarian Energy Holding (BEH), the National Electric Company (NEK), the nuclear power plant (NPP) Kozloduy and Bulgargaz show that the companies’ capitals continue to be concentrated in Corporative Commercial Bank, the daily writes.
Source: Capital (12.12.2013)

Bulgargaz sues Heat Supply Vratsa for BGN 2.3 million State gas company Bulgargaz brought a lawsuit against Heat supply Vratsa for about BGN 2.3 million. Heat supply Vratsa owes to Bulgargaz about BGN 6 million that has been accumulated in 2013. The state company is to look for its claims by court order only in cases that it can’t negotiate for small deferment or rescheduling. Total value of current obligations of different companies to Bulgaraz is to the amount of BGN 131 million. Of them more than 90% are owed by six companies - Heat Supply Sofia, Heat supply Vratsa, Heat supply Pleven, Heat supply Burgas, Petrich Greenhouses and gas distribution company Industrial gas supply - Sliven.
Source: investor.bg (14.12.2013)

Bulgarian energy branch reshuffle: Ivan Jonchev named as new director of Bulgarian Energy Holding Financier Ivan Jonchev is the new director of the Bulgarian Energy Holding (BEH). He is taking the place of Bojan Boev, who resigned as he was elected President of the State Energy and Water Regulatory Commission on Wednesday. Ivan Jonchev has been a member of the Board of Directors of Mini Maritsa Iztok since October. His appointment is the latest chapter of the major reshuffle in the Bulgarian energy sector which started a few days ago. State Energy and Water Regulatory Commission President Angela Toneva handed in her resignation allegedly to become a governmental advisor. Bulgargas head Shishman Chaoushev also resigned last week, after only being appointed in November. His chair will be taken by Dafinka Iankova, the head of BEH's auditory body. Chaoushev, in turn, will become the new director of the Electricity System Operator.
Source: Novinar (16.12.2013)

Shah Deniz partners announce FID for Shah Deniz II gas project The Shah Deniz consortium announced on Tuesday the final investment decision (FID) for the second stage development of the Shah Deniz gas field in the Caspian Sea, offshore Azerbaijan, consortium co-venturer British Petroleum (BP) said. The FID triggers plans to expand the South Caucasus Pipeline through Azerbaijan and Georgia, to construct the Trans Anatolian Gas Pipeline (TANAP) across Turkey and to construct the Trans Adriatic Pipeline (TAP) across Greece, Albania and into Italy. Together these projects, as well as gas transmission infrastructure to Bulgaria, will create a new Southern Gas Corridor to Europe, BP said in a press release. The total cost of the Shah Deniz Stage 2 and South Caucasus Pipeline (SCP) expansion projects will be around $28 billion (20.3 billion euro), it added. A total of 16 billion cubic metres (bcm) per year of gas produced from the giant Shah Deniz field will be carried some 3,500 kilometres to consumers in Georgia, Turkey, Greece, Bulgaria and Italy. First gas is targeted for late 2018, with sales to Georgia and Turkey. First deliveries to Europe will follow approximately a year later. Offshore, the Shah Deniz project includes drilling and completion of 26 subsea wells and construction of two bridge-linked platforms. Onshore there will be new processing and compression facilities at Sangachal. In the shorter term, the Shah Deniz partners have agreed terms with Azeri state-owned oil and gas company SOCAR for expanding production through the existing facilities by 1.4 bcm per year. The production increase is already in progress and is expected to be completed by the end of 2014. SOCAR and the Shah Deniz partners have also agreed terms for extending the Shah Deniz Production Sharing Agreement (PSA) up to 2048. The Shah Deniz partners have agreed to undertake exploration and appraisal work on prospects within the PSA area. "Today’s decision means that gas sales contracts with nine European companies will now come into effect," BP said. As a result some 10 bcm per year of Shah Deniz gas are expected to be delivered for 25 years to customers in Italy, Greece and Bulgaria. In addition, some 6 bcm per year of Shah Deniz Stage 2 gas will be delivered to consumers in Turkey. All gas sales and transportation contracts will be managed by the Azerbaijan Gas Supply Company established by Shah Deniz co-venturers under the operatorship of SOCAR. Coincident with the FID, SOCAR purchased 6.7% equity in Shah Deniz and the South Caucasus Pipeline from Norway's Statoil, and BP purchased 3.3% equity in Shah Deniz and the South Caucasus Pipeline from Statoil. Both of these transactions are subject to conditions that are expected to be satisfied in 2014. The Shah Deniz co-venturers are: BP with a 28.8% stake, SOCAR with 16.7%, Statoil with 15.5%, France's Total with 10%, Lukoil with 10%, NICO with 10% and Turkish state-owned company TPAO with 9.0%. These percentages include the above-described purchases of equity from Statoil by BP and SOCAR, respectively, which are subject to conditions that are expected to be satisfied in 2014 for completion of the transactions. The TANAP partners are expected to be: SOCAR (68%), Turkish state-owned company BOTAS (20%) and BP (12%) following the purchase of TANAP interests by BOTAS and BP that are expected to be completed in 2014. The TAP partners are: SOCAR (20%), BP (20%), Statoil (20%), Fluxys (16%), Total (10%), Germany's E.ON (9.0%) and Switzerland's Axpo (5.0%).
Source: Capital (18.12.2013)

State-owned TPP seeks more money Almost a month after drawing a credit of over BGN 2 million, the state-owned Maritsa Iztok 2 TPP needs money again, shows a reference to the Public Procurement Register. The TPP seeks for a bank to lend BGN 50 million with maturity December 20, 2016. The plant will use the money to invest. On 19 November Maritsa Iztok 2 TPP borrowed BGN 2 million from CCB to cover the contribution to the Japanese Bank that had been granted as loans for rehabilitation of the facilities. Separately, since June the company uses BGN 20 mln loan for working capital. By this move the company has become the third state energy company in need of money to cover current needs after Bulgargaz and Kozloduy NPP. Maritsa Iztok 2 has received a loan of BGN 137 million in the middle of the year by its parent company BEH, according to the company's report. Maritsa Iztok 2 is second after Kozloduy NPP in cheapest electricity in the country. The company is also a major buyer of coal from Mines Maritsa Iztok.
Source: Trud (18.12.2013)