State Secretary at the Montenegrin Ministry of Capital Investments Marko Perunovic announced that the production of hydrocarbons at the
perimeter awarded to a consortium of Italian Eni and Russian Novatek will not be feasible, because test drillings yielded no results.
Perunovic said that concessionaires have completed test drillings and final reports has not been completed yet, but the Government was informed of a negative result and the well is now considered as a dry hole.
According to the concession agreement, following the completion of the first phase, Eni/Novatek was supposed to enter the second phase with the drilling of another, shallower gas well. However, it is not clear whether the concessionaire will proceed with drilling activities within the perimeter.
In March 2021, the consortium has launched the first exploratory oil drilling activities in the sea area between Bar and Ulcinj, some 28 kilometers from the coast. The activities were expected to take four and a half to six months. Earlier this month, the Government announced that it has extended the deadline for the completion of the first exploratory phase of the project for hydrocarbon drilling in the Adriatic Sea led by Eni/ Novatek consortium. The deadline was pushed back by six months.
Montenegro also signed a concession agreement with Energean for two offshore blocks, 4219-26 and 4218-30, was signed in March 2017. Energean is still in the process of finding a partner for the project.
