Bulgaria’s energy ministry said on Tuesday that it signed a contract with Dutch-based Shell Exploration and Production, part of UK-based oil and gas company Shell, for oil and gas prospecting and exploration in offshore Block 1-26 Khan Tervel, in the country's exclusive economic zone in the Black Sea.

Shell's work programme involves complex geological and geophysical works, including conducting new 3D seismic surveys, processing and interpretation of seismic data and assessing the area's potential, the ministry said in a statement.

The company will also finance educational initiatives to support the training of Bulgarian specialists in oil and gas exploration and production.

Energy minister Zhecho Stankov said that, if resources are discovered, up to 30% of the benefits will be returned to the country through concession fees. The contract will also help the country achieve energy independence.

"We look forward to the first steps of this exploration campaign in the Bulgarian Black Sea as we conduct seismic surveys. Shell has a strong history of safe and effective exploration activities in the Bulgarian Black Sea and we look forward to bringing our experience back to Bulgaria," Shell executive vice president for exploration, strategy and portfolio Eugene Okpere said.

The contract follows a bidding procedure launched last June, which attracted four companies, two of which submitted offers.

Shell was chosen based on its proposed work and investment programme, environmental protection commitments, funds for training and bonus payment to the state over the five-year exploration period. The company will also pay an annual area fee.

Block 1-26 Khan Tervel spans an area of 4,032 square kilometres.