Montenegro: The Government decline rights for offshore companies to participate in the tender for oil research

10. April 2013. / SEE Energy News

Montenegrin Government decline offshore companies to participate in tenders for oil research and exploitation. Government gave up the practice two offshore companies show up as participants and buyers in privatization of the biggest Montenegrin companies: KAP, Zeljezara and tourist complexes.

The companies, that don’t have rights to participate in tender, were discussed in information Government adopted on the last week session:

-Companies that are coming from taxation regions and offshore destination i.e. companies that are not registered in jurisdictions and which Governmental bodies don’t have right to approach to as in registration sense and in sense of financial reports. Companies that have final ownership structure which is not transparent to Montenegrin Government can’t participate in the tender either, as well as companies that company have negative experience about. Tender’s date is not officially determined still, but it is expected to be soon.

According to tender conditions, 13 blocks of 3191 km2 that territorially belonged to the former 13th block near Ulcinj. Mentioned blocks are chosen because there are the most available geological data about them, considering that company interest is the largest for this part of the seabed.

17% of incomes go to the state: Government determined fiscal policy of upstream industry of hydrocarbon which defines model and height of incomes that go to the state from oil and gas production industry. Fiscal policy predicted the total income that goes to the state from production to be at the level of 60 to 70% of total achieved net profit.

The agreement is being assigned to concessioner in every 7 (+2) years plus additional 20 years in the case production was launched. The decision for contract assignment is being made by Montenegrin Parliament and tender is opened for 9 months. There is no buyout of tender documentation, it is free and it can be found on the government’s website. Bidders pay 35.000 EUR for offer delivery fee.

24 companies competing for “black gold”: 24 companies showed some interest in tender for oil research. The biggest world companies in this area are among them, for example Gasprom (Russia), Exona (USA), Statoila (Norway)…

Source; Serbia Energy SEE desk/MNE Gov press office

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