Bosnia: “Shell” obtained a concession, Signing contract of exploration and exploitation of oil planned for end 2014

, SEE Energy News

The company “Shell” will receive a concession for oil exploration in the territory of Bosnia and Herzegovina, and the entire project is ready to invest 700 million USD, confirmed the Minister of Energy, Mining and Industry, of the Federation of Bosnia and Herzegovina Eldar Trhulj announcing the start of negotiations on concession for February next year.

Signing of the (final) contract could likely occur in late 2014 – said Trhulj.

According to him, soon after that, the start of work on the wells is expected, and FBiH authorities plan to sign an agreement on oil exploitation with “Shell” for 25 years.

This oil giant has sent a letter to the Government of FBiH in September in which he expressed interest in talks on granting concessions for the exploration and exploitation of oil. Thereby they indicated that thy are especially interested in the Dinaridi.

– For the first time we have a serious investor – said Trhulj.

As reported by the portal, the federal government has given in principle approval for negotiations on concession last week. Research would be carried out in the area from the northwest BiH over Bihac, Drvar to Mostar and in direction of Metkovic.

It is assumed that the oil reserves on the Dinaridi area, which crosses the border with Croatia, hide on the depths of between four and eight thousand feet.

To reveal a site at least three wells should be made, and for each of them, “Shell” will set aside  75,000 dollars.

Source; Serbia Energy See desk

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