PODGORICA (Montenegro), March 15 (SeeNews) – Greek oil and gas group Energean said on Wednesday it has signed a concession contract with Montenegro for the exploration of two offshore oil and gas blocks in the Adriatic Sea.
The total investment in the 4219-26 and 4218-30 blocks over an exploration period of seven years will be $19 million (17.9 million euro), including the funding of a new 3D seismic survey, geophysical and geological studies, and the drilling of one well, Energean said in a statement.
The company plans to begin the 3D seismic acquisition of the two blocks, located offshore at a water depth of 50-100 metres, close to the Montenegrin coast in the vicinity of the town of Bar, in the first quarter of 2018, Energean said.
“I am delighted to sign this Concession Contract, which marks a significant day for Energean and our continued growth, as we enter the highly promising Adriatic region. Whilst a number of major oil and gas companies left the area during the period of sustained low oil prices, Energean remained committed to pursuing the development of the region and is now extremely well placed to take advantage of this commitment and focus," the CEO of the Greek company, Mathios Rigas, said in the statement.
The concession deal was signed by the Montenegrin government in June 2016 and approved by the country's parliament during the regular session on December 28.
The Montenegrin government called a tender for the exploration of 13 offshore blocks spreading on an area of 3,100 sq km in August 2013. In June 2016, the government awarded a contract for four blocks to Italian-Russian consortium comprising Eni S.p.A. and Novatek.
($ = 0.9409 euro)