History and current operations 

Shell Bulgaria was founded in 1991 and opened its first retail site in 1993. We were the first international oil company to enter the Bulgarian market and now have already 29 years presence in Bulgaria. Since 2016 Shell has expanded its business presence in Bulgaria and made an Upstream entry in the country. Together with our partners Woodside (30%) and Repsol (20%) we are exploring for oil and gas in Khan Kubrat Block in the EEZ of Bulgarian Black Sea. During the license period of 5 years there were safely conducted 3D seismic survey and the exploration well “Khan Kubrat 1”, which itself is beyond the license commitment. For the moment we are reviewing the outcome of the drilling process, and we’re not yet in a position to take a decision about the next steps.

In 2017, Shell added another business to its portfolio in Bulgaria – the supply of aviation fuel. Shell & MOH Aviation Fuels Bulgaria, which is a 100% subsidiary of Shell & MOH Aviation, is a supplier to Sofia Airport, which is the largest airport in Bulgaria. So, at present we have both upstream and downstream projects in the Bulgarian market.

What we offer in Bulgaria in more than 100 retail sites is what Shell is offering globally – high quality fuels which are developed in research and development centres of Shell like the one  in Hamburg and adapted to local specifics, convenience retail products and the euroShell card service for delayed payments and effective management of its corporate clients’ automotive parks, as well as the ClubSmart loyalty program. Every month over one million customers are serviced at Shell Bulgaria’s retail sites.

Benefits of Bulgaria

We were the first international company in the downstream business and this gave us a great advantage. The market was underdeveloped and we saw potential for growth. We saw a chance to set Shell global standards and corporate culture in Bulgaria and thus to have a positive impact on the business environment.

There are a number of benefits we see investing in Bulgaria, such as the political environment which is very important for a company like Shell. Despite occasional turbulent times there has been relative political stability. Bulgaria is a member of the EU, NATO. Bulgaria has the currency board as well as stable GDP growth in the last few years. Although with COVID-19 the situation has changed significantly.

Last but not least, the strategic geographic location at the crossroads between West and East is another benefit we value. This is important for the downstream business which we operate at the moment but as well for other potential business opportunities. So, all these elements make Bulgaria attractive for an international company like Shell.

Road network expansion

We are always keen to explore opportunities, but in general we are not growing at the pace with which we have grown so far. We have 103 retail sites in Bulgaria, 82 are Shell owned sites, the rest are dealer operated franchises under the Shell brand. They use our brand and apply all the Shell standards. There is no difference for our customers. Franchisers must comply with certain conditions, pass a due diligence process, have the competences and capabilities to do the job and have the right location and asset, and be prepared to cooperate with Shell and comply with all the high requirements – including safety of operations.

Training

We have about 1000 staff employed indirectly by our retail sites, we have special training tools and a platform. The training is of key importance for us to deliver high level customer service which is expected from a company like Shell.

Innovation

Innovation is a way to differentiate ourselves from the competition. Shell was the first company to offer premium fuels. All the additives were developed in our high-tech laboratory in line with the needs and requirements of the Bulgarian driver. Bulgarian customers are also very sensitive towards fuel quality so we have introduced a new process in terms of quality control from the depot to the retail site using third party like SGS, a certified company which is checking the fuel quality on random basis and independently. We were the first on the market to introduce a loyalty card in our retail operations. We were the first to introduce fast charging electric stations in partnership with Eldrive and now we have more than ten in Bulgaria on key locations. We were also the first to use renewable energy for the operations of our retail sites and introduced pilot projects using solar panels on the roofs of the retail sites. We are looking for ways to improve energy efficiency with innovative ideas in this area. We are leaders in health and safety in the oil industry in Bulgaria. More than 10 years ago we have introduced Shell’s life-saving rules in Bulgaria and improved the safety records of our business partners and contractors.

In the exploration area, we have demonstrated innovation by introducing the technology of managed pressure drilling. This is the best technology for the Black Sea where the geology requires this. Exploration activities in Bulgaria are now seen as a best practice example within Shell. 

Shell’s customers and business partners see our innovations and trust us. 

What do you give back?

There are a number of areas where we provide support to the country. The majority of them are linked to Shell’s global thinking by supporting STEM – science, technology, engineering and mathematics. One of the key projects supported by SHELL and very much valued by both British and Netherlands Embassy, is Shell Eco-marathon project where students develop their own car and compete for energy-efficient performance. We have been developing this initiative in Bulgaria over the past 10-12 years. We have supported six student teams from six universities and high schools in Bulgaria.

Another area of support for Bulgaria is road safety. We have a number of initiatives working with the national road police. One example was the introduction of the use of seat belts, in front and rear seats, we worked together with the authorities to raise awareness of our customers at retail sites. We organise regular road safety conferences with our business partners to share success stories and learn from incidents. Road safety is really our special interest and we have a good track record in terms of supporting the government and society. This is part of our voluntary social investment projects. 

In addition, as part of the upstream business and agreement with the Ministry of Energy, we have mandatory social investment projects amounting to 1 million Euro, divided between 8 projects. Two are at Sofia University and the University of Mining and Geology, and 6 in Black Sea municipalities. The biggest is in Bourgas where we are developing a science and energy centre to support the STEM idea. It will be opened officially in September, and we will invite number of external stakeholders   for the opening. More than half a million Euro has been invested in this centre.

Also, during the Upstream project campaign we were using local contractors and their employees mainly for the logistic operations support, which is one of the positive impacts for the local communities.

BBBA and British Embassy

We work very closely with the British Embassy and we receive valuable support from them in a number of areas, including communication with the Bulgarian government on legislative matters.  We have regular updates with the office of the British Ambassador about our experience in doing business  in Bulgaria. We provide regular updates about the development of our downstream and upstream business. We have good relations and see the benefit of a strong relationship. Also, I would like to say that the Bulgarian government values and respects the opinion of the British Embassy. The British embassy always has a very transparent approach and recommends impact assessments for the regulatory changes. We really benefit from our relationship with the British Embassy. We have also participated in several events organized by the BBBA and look forward to cooperating in the future.