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Montenegro may become significant crude oil exporter - Hellenic Petroleum director

Author Radomir Ralev
Montenegro may become significant crude oil exporter - Hellenic Petroleum director Roberto Karahannas; Source: Institute of Energy of South East Europe

PODGORICA (Montenegro), July 22 (SeeNews) - Montenegro may become a significant exporter of crude oil if offshore exploration works yield positive results, Roberto Karahannas, a director at Hellenic Petroleum, has said.

"Montenegro has no refinery, so if crude oil is found, it will not be used for domestic consumption, but for export," Karahannas said in a video file published on the website of Montenegrin public broadcaster RTCG on Sunday.

The potential construction of a refinery would be unprofitable, as dozens of them are currently being closed in Europe, but the potential existence of crude oil offshore Montenegro would bring a significant source of income for the state, Karahannas added.

Hellenic Petroleum acquired Montenegrin oil products distributor Jugopetrol [MNG:JGPK] in 2002. The company is active in the distribution and retail of petroleum products as well as wholesale through the operation of a storage facility at the Adriatic port of Bar and filling terminals at the airports of Tivat and Podgorica.

In September 2016, Montenegro signed a concession contract with the Italian-Russian consortium Eni-Novatek for the development of oil and gas exploration blocks 4118-4, 4118-5, 4118-9 and 4118-10 with a total area of about 1,200 square kilometres located in Montenegrin territorial waters. Novatek and Eni each hold 50% stake in the concession.