Profit before tax
Main business activities
Shell has been present in Bulgaria since 1991 and is mostly active in the downstream sector with a network of 107 retail sites across the country.
In 2016, Shell signed a licence agreement with the Ministry of Energy to explore for oil and natural gas in the Bulgarian continental shelf of the Black Sea.
In 2019, Shell International Exploration and Development Italia S.p.A., which has a Bulgarian branch, signed an agreement with two partners and began drilling its first oil and gas exploration well. However, results from the well were not satisfactory. In July 2021, the initial five-year period of the licence agreement expired. Shell International Exploration and Development Italia S.p.A. decided not to apply for extension of the licence and is in the process of deregistering the branch. Up to December 2021, Shell had directly invested almost $74 million in oil and gas exploration in Bulgaria.
Country financial analysis
Bulgaria’s statutory corporate income tax rate is 10%. Shell reported a 2021 loss as a result of upstream exploration costs. However, tax was paid on the profitable downstream activities.