Greece’s Energean Inks Contract to Drill Offshore Montenegro
Greece’s Energean Oil & Gas announced on March 15 that it has signed an exploration and production Concession Contract with the State of Montenegro covering offshore blocks 4219-26 and 4218-30, following approval from the Parliament of Montenegro.
Montenegro’s Minister of Economy Dragica Sekulic and Energean CEO Mathios Rigas signed the contract in Podgorica that foresees a total investment over an exploration period of seven years of $19 million, including the funding of a new 3D seismic survey, geophysical and geological studies, and the drilling of one well.
The two blocks are located offshore at a water depth of 50-100 metres, close to the Montenegrin coast in the vicinity of the town of Bar. Energean plans to begin the 3D seismic acquisition during the first quarter of 2018.
The Eastern Adriatic has been substantially underexplored to date, despite having similar geology to the wider Adriatic Zone, which is well known for its prolific hydrocarbon systems in Italy, Albania and Croatia, and has been a significant oil and gas-producing region for over 50 years. This latest announcement further underpins Energean’s commitment to seeking to open up the oil and gas opportunities in this highly promising territory.
Rigas, hailed the signing of the Concession Contract, saying it marks a significant day for Energean and its continued growth, as the Greek company enters the Adriatic region. “Whilst a number of major oil and gas companies left the area during the period of sustained low oil prices, Energean remained committed to pursuing the development of the region, and is now extremely well placed to take advantage of this commitment and focus,” Rigas said. “We believe the geology to be similar to that in Western Greece, where we have been exploring since 2014 (onshore Ioannina), have a Field Development Plan in progress offshore West Katakolo, and are ready to sign a new contract for a further block (onshore Aitoloakarnania),” the Energean CEO said.
“Furthermore, our strong track record of operating in environmentally sensitive areas, successfully operating the Prinos oil field in Northeastern Greece, which has been producing oil since 1981, ideally places us to drive through this project for the benefit of the local economy and Montenegrin people,” Rigas concluded.