Bosnia:Shell begins oil & gas explotation concession in 2014, SEE Energy News
The international oil and gas company Shell Exploration Company BV from Holland finished all the previous analysis and formally submitted a letter of expression of interest to enter into negotiations for concessions for the exploration and exploitation of oil, said Erdal Trhulj, Federal Minister of Energy, Mining and Industry, after a meeting of the Committee to monitor the implementation of the memorandum that the Federal Government signed with this company two years ago.
– The Federal Government will propose an extension of the memorandum for a year, due to the fact that the negotiations for the concession, in accordance with applicable law and experience in the world, last between six to nine months. We need additional time to do adequate negotiations, so the government could make a decision on a strategic interest for the Dinarida area and in order to select a consulting company with experience who will negotiate on behalf of the Government, told Trhulj for Oslobodjenje, adding that the Commission will be formed and composed of representatives from federal parliament and government that will supervise the negotiations.
The successful conclusion of the negotiations would open the possibility that Shell in autumn next year opens the company in Sarajevo and starts works on the exploration and exploitation.
Research in this area could take two to three years, and the investment ranges from 300 to 700 dollars, said Trhulj.
Government of FBiH and international oil and gas company Shell signed in November 2011 a two-year Memorandum of understanding that provides exploration and exploitation of oil and gas in the Entity.
By this Memorandum it was agreed that Shell starts exploitation of reserves in 2015, if it finds oil and gas.
Shell is interested in oil wells in the Dinarides region and the Bihac via Livno, Mostar and to the town of Neum. The reason that the story of the memorandum has been going on for two years was in the fact that there was waiting for the adoption of the exploration and exploitation of oil and gas in FBiH, which the federal Parliament adopted on 13 September this year. This has opened the door for Shell to Federation of Bosnia and Herzegovina.
Source; Serbia Energy See desk/Oslobodjenje