Montenegro’s Ministry of Mining, Oil and Gas has issued a new tender for the reconstruction of state-owned oil storage facilities in the coastal city of Bar. The project, aimed at securing the country’s mandatory oil reserves, is estimated at 1.8 million euros and will be financed through European Union funds.
The Bar storage site, with a total capacity of 17,600 cubic meters, plays a key role in Montenegro’s plan to meet EU requirements for emergency oil reserves. The project supports the country’s commitments under Chapter 15 on Energy as part of its EU accession process. According to the ministry, the renovation work is expected to be completed within nine months, and the deadline for submitting bids is set for 16 June.
This is the second tender launched for the project. An earlier attempt earlier this year failed to attract bids, primarily due to concerns over the original cost estimate. Following consultations with potential bidders in March, who pointed out rising construction and material costs since late 2023, the Ministry raised the estimated value by 20 percent to 2.13 million euros. Despite this, the official project value in the new tender remains at 1.8 million euros, with additional EU funding allocated to other components of the broader reserves initiative.
The European Union has allocated a total of 7.5 million euros to support Montenegro’s efforts to establish strategic oil reserves. Of this, 1.8 million euros is earmarked specifically for the reconstruction of the Bar facility, while the remaining funds will be used to begin accumulating the required oil stockpile. Montenegro’s new law on oil reserves, adopted in November, outlines the country’s target of securing a full three-month supply of oil reserves by 2029, in line with EU regulations.
The Ministry plans to start accumulating oil reserves in the fourth quarter of 2025, once the Bar facility has been renovated. In addition to Bar, Montenegro operates other storage sites, including a 24,700-cubic-meter facility in Bijelo Polje and a 10,000-cubic-meter site in Lipci, near Kotor. Both of these facilities are also in need of upgrades and will be considered in future phases of the national energy security plan.
