Podgorica, (MINA-BUSINESS) – The Government has adopted an amendment to the decision on determining blocks for the exploration and production of hydrocarbons.

Under the current decision, the Government carried out a mathematical and technical division of the entire territory and seabed of Montenegro into blocks.

“With this amendment, specific blocks are determined to be offered through a public call for awarding agreements for hydrocarbon exploration and production, as well as through a call for hydrocarbon exploration,” the Government’s announcement stated.

The area to be offered to interested oil companies is divided into offshore blocks, defined on the basis of a geographical grid.

The total area of all blocks that will be offered covers the entire seabed of Montenegro.

During the discussion, it was emphasized that oil companies can apply for one or multiple blocks, and one of the important points to highlight is the possibility that the Government may allocate one production concession contract among several concessionaires.

“Such an approach is possible based on the Joint Operating Agreement (JOA) model. Due to a lack of valid data for the entire seabed of Montenegro, care was taken to ensure that newly obtained information clarifies our position and enables us to better utilize our hydrocarbon potential,” the Government stated in a press release.