In a strategic move to comply with European Union reserve obligations, Montenegro is set to commence the refurbishment of oil storage tanks at the Port of Bar in February. This initiative follows the formalization of a contract between the Ministry of Energy and Mining and a consortium led by Croatia’s S.A.K.Z., which includes several local firms. The project is estimated to cost approximately €1.74 million, excluding VAT, and is anticipated to take nine months to complete.
The refurbishment project focuses on the adaptation and modernization of three specific petroleum storage tanks—R11, R12, and R18. Preparatory discussions have already taken place involving contractors, supervisory bodies, and Jugopetrol, the terminal operator. As part of the contractual agreement, the contractor has submitted a performance guarantee amounting to 10% of the contract value and secured a professional liability insurance policy worth €500,000. This marks the third attempt to tender for this project after previous efforts were thwarted by underestimated costs and invalid bids.
This refurbishment is deemed essential for establishing mandatory oil reserves in alignment with EU requirements. Following the completion of all necessary legal processes, Montenegro plans to issue a new tender for diesel procurement. This comes after an urgent tender valued at €11 million was canceled due to non-compliance issues with submitted bids.
As part of its broader reserve strategy, Montenegro’s hydrocarbons authority intends to allocate between €9 million and €12 million in 2026 for the acquisition of 12,000 to 16,000 tons of diesel fuel. Funding for this procurement will be sourced from a fuel levy. The diesel is expected to be stored in the refurbished tanks at the Port of Bar; however, if delays occur during refurbishment, temporary storage solutions may involve facilities in Montenegro, Croatia, or Italy at an estimated cost of €5 per ton per month.
