Government and Eni-Novatek consortium sign Contract on Hydrocarbon Production Concession in offshore of Montenegro

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Podgorica, Montenegro (14 September 2016) – Montenegro's Economy Minister Vladimir Kavarić and representatives of the selected concessionaires, the Italian oil company ENI and Russian energy company Novatek, Carlo Vito Russo and Andrei Popov, signed earlier today in Podgorica the Contract on Hydrocarbon Production Concession in the offshore of Montenegro, defining the relations between the two parties.

"Signing of the contract is of huge importance for Montenegro, as it is another chance to valorise our resources," Prime Minister of Montenegro Milo Đukanović told the press following the signing ceremony.

Finding commercial oil and gas reserves would lay the foundation for an entirely new industry in Montenegro, thus contributing to the increase of production and export, as well as to faster overall economic growth, PM Đukanović continues.

“This would enable faster employment and higher wages in this industry. In parallel, this would contribute to increasing budget revenues of the state, which would create conditions for paying greater attention to pensioners and employees in important sectors, such as education and health,“ he explained.

The awarded area is 1.1228km2 long and includes four blocks in the municipality of Ulcinj.

Tender for oil and gas exploration was announced in late July 2013 and closed on 15 May 2014.