"The Government of Montenegro has received bids from 6 companies to the Public Invitation to apply for Hydrocarbons Production Concession Contract for the Offshore of Montenegro published by the Ministry of Economy on 7 August 2013, which was closed on 15 May 2014.
Three groups have applied to the First Offshore Bid Round: Group one includes Marathon Oil Netherlands One B.V. and OMV Montenegro Exploration GmBH;
Group two consist of Eni International B.V. and Novatek Overseas Exploration & Production GmBH; and Group 3 includes Energean Oil&Gas and Mediterranean Oil&Gas Plc.
13 blocks offshore Montenegro were offered under this First Offshore Bid Round with a total of 3,100 sqm.
The Committee for opening, verification, assessment and evaluation of the bids submitted to the First Montenegro Offshore Bid Round, formed by the Ministry of Economy of Montenegro, is in the process determining whether the companies have met the minimum requirements prescribed by the Public invitation to apply for Hydrocarbons Production Concession Contract in Montenegro's Offshore.
According to the plan, the Government of Montenegro will send the proposal of the Concession Contracts for Hydrocarbons Production in Montenegro's Offshore to the Parliament, which are going to be adopted by the end of the year." There has been a very important participation from IOCs in the licensing round. What is it that attracts these major IOCs to Montenegro?
"The objective of Montenegro is to create predictable environment in this sector, thus, in addition to adopting the sector specific law, the Government of Montenegro has also adopted the Hydrocarbon Upstream Industry Fiscal Policy, with the other supporting regulations adopted, and the Parliament of Montenegro has recently adopted the Law on Taxation of Hydrocarbons.
Montenegro attracts major IOCs for a number of reasons:
- Clear hydrocarbons resource management policy in place before the bid round is opened
- Fiscal policy in place, including all fiscal elements
- Complete legal framework developed ahead of the bid round, including legislation, tender documents, model contracts
- Limited and clear negotiable items, no negotiation in particular with regards to fiscal/ financial elements; focus is on technical part of the bids
- Strategic Environmental Impact Assessment for offshore upstream hydrocarbons activities is being developed, which will provide clear baseline in terms of the environmental protection
- Transparency of process and documents, and data availability"
What should Balkans Oil & Gas Summit attendees expect to find out from you at the event?
"The world's eyes have turned towards our region and the undeveloped resources of the Adriatic, at a crucial stage of developments when there is a lot to discuss and many important decisions to be made. As all countries in the region will be present, it will be a good opportunity for participants to assess various models used across the region, and while understanding them, be able to take part in present and future bidding rounds.
In light of Montenegro's just completed First Bid round, we will present oil and gas opportunities in our country, future plans, examine how regional collaboration in developing infrastructure will help the Adriatic to compete on the global stage, and discuss why an environmental impact assessment processes are important and the responsible development of the oil and gas industry in the Adriatic. We will also present our experience of the ongoing bid round including the fiscal regime."
For more information on the 3rd edition of the summit reply with 'more info Balkans' in the subject line.