Wednesday, 25 Apr 2012
Galata Platform © Melrose
Bulgarian wells drive Melrose success
Oil and gas exploration and production business Melrose Resources has now been operating in Bulgaria for 14 years. Its Bulgarian assets comprise three production licences in the western Black Sea, Galata, Kavarna and Kaliakra.
Melrose first entered Bulgaria in 1998 through the acquisition of Petreco. In 2003, the Company developed the Galata gas field, bringing it into production in 2004. Melrose commissioned and installed all the required infrastructure, including an unmanned offshore platform and an onshore processing plant to bring gas to the Bulgarian domestic market. During its plateau production period, Galata was estimated to supply about 15 per cent of Bulgaria's domestic natural gas supply.
David Archer, Melrose Resources' general manager in Bulgaria, says the high quality of his local staff - all Bulgarian - has been behind the company's success.
Archer is pleased that the UK embassy has always supplied strong support. "For more than 10 years successive British ambassadors and embassy staff (many of whom are Bulgarian) have been strong active supporters of our investment and operations in Bulgaria. They have lobbied at the highest levels on occasions when we have been bogged down in a process. This is also true of successive Bulgarian Ambassadors in London."
Archer believes that the Bulgarian economy will continue to grow. "In 20 years I am sure Bulgaria will be a stronger player in Europe," he says. He believes that Bulgaria's economy is sounder than many other (superficially stronger) economies and not so debt dependent.
The Edinburgh-based company's post-tax profit was 39 million euro last year and Bulgaria currently accounts for 40 per cent of revenue.
Tim Buisseret, Head of UKTI Sofia, says “We are very pleased to be able to help Melrose Resources, one of the largest British investments in Bulgaria. Bulgaria has many attractions to UK companies, being close to the UK, part of the EU, with a skilled labour force, a low tax rate and a fast-growing economy. Bilateral trade between the UK and Bulgaria has trebled over the past ten years, and we are keen to help other companies to succeed here.”
If you are interested in developing your business in Bulgaria please contact:
Head of UKTI Sofia
Telephone: +359 2 933 9228