SARAJEVO (Bosnia and Herzegovina), June 10 (SeeNews) – Bosnia's Federation has signed a deal with London-based IHS Global for consultancy services on the issuing of an international public invitation for oil and gas exploration works on the entity's territory, local media reported.
The Federation's government has signed the contract with IHS Global some fifteen days ago, news daily Dnevni Avaz reported on Sunday.
Back in December, the Federation said it had picked the 1.28 million marka ($740,000/654,500 euro) bid of IHS Global for the delivery of consultancy services.
Avaz quoted the Federation's energy and mining minister Nermin Dzindic as saying that the winner of the future oil and gas exploration tender will finance itself the exploration works.
The consultancy services contract signed with IHS Global has a term of 16 month and includes the preparation of tender documentation, the publishing of an international tender for oil and gas exploration and exploitation, as well as recommendations for the best model of agreement with the future contractor and the optimal fiscal parametres concerning the project's short- and long-term economic impact.
In a second phase, expected to last six months, IHS Global will also help evaluate the bids and provide expert advice in the negotiations.
Earlier findings have established that the territory of the Dinaric Alps and the Tuzla area potentially contain the largest deposits, the news report says.
In September 2015, Shell Exploration Company exited an earlier initiative to conduct geological and geophysical research to determine the oil and gas prospects of the Federation. Shell said at the time that following an internal portfolio review and in light of the oil and gas environment, it would not seek to extend its deal with the Federation. The agreement was extended in 2013 and 2014 to enable the parties to potentially negotiate an oil production licence but such negotiations never started and the deal expired.
After the exit of Shell, several international companies, including France's Total, Australia's Key Petroleum and UK's Spectrum have shown interest in the project, according to Avaz.
The Federation is one of two autonomous entities that make up Bosnia and Herzegovina. The other one is the Serb Republic.
(1 euro = 1.95583 marka)