Energean Oil & Gas signs 19-mln-euro exploration-production deal for hydrocarbons in Montenegro

Greek oil producer Energean Oil & Gas signed on Wednesday a 19-million-euro contract with Montenegro for the exploration and production of hydrocarbons for two blocks off the country’s coast, over a seven-year period.

The concession contract concerns Blocks 4219-26 and 4218-30 and includes a new 3D seismic survey, the preparation of geophysical and geological studies and the drilling of one well. The two blocks are at a depth of 50-100 meters near the coast of Bar.

Energean says it plans to begin the seismic survey in the first quarter of 2018.

The deal was signed by Montenegro Minister of Economy Dragica Sekulic and Energean President and CEO Mathios Rigas in Podgorica. The Montenegrin parliament has already approved the agreement.

Commenting after the deal, Rigas 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.”

‘We believe the geology to be similar to that in Western Greece, where we have been exploring since 2014 (onshore Ioannina), have a Field Development Plan in progress offshore West Katakolo, and are ready to sign a new contract for a further block (onshore Aitoloakarnania),” he added.

(ΑΠΕ-ΜΠΕ, Reuters)