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Montenegro prepares for tender on oil storage and reserves as EU accession nears

Montenegro’s Minister of Mining, Oil and Gas, Admir Šahmanović, announced that the tender documentation for the adaptation and modernization of oil storage facilities in Bar is ready. He explained that the Cadastre Administration is currently working on registering the disputed land where these facilities are located. Once this process is completed, the tender for modernization can be launched. Šahmanović shared these details during a debate in Parliament on the Draft Law on the Security of Supply of Oil Derivatives.

“The tender documentation is prepared, and we are waiting for the Cadastre Administration to finalize the registration of the disputed property, which has been unresolved for many years. We’ve now received a final judgment, and once the Cadastre Administration finishes their part, we will be ready to announce the tender. The Hydrocarbons Administration is likely to call for a tender for procuring necessary oil derivatives at the end of 2025,” Šahmanović stated. He also mentioned that funds for conceptual solutions and the further use of reservoirs in Lipci and Bijelo Polje are planned for the following year. However, concerns over the profitability of these facilities, given their distance from the Port of Bar, will be considered economically.

This law is vital for Montenegro’s negotiations regarding its European Union (EU) accession, specifically for Chapter 15 – Energy. It obligates the formation of oil reserves, a requirement for the Hydrocarbons Administration and any importer of oil derivatives bringing in 15,000 tons or more of unleaded gasoline and/or gas oils. These reserves will be used in case of disruptions to the supply of oil derivatives. To establish these reserves by 2028, Montenegro will need €44.5 million, with €7.5 million already allocated this year from an EU grant to help mitigate the energy crisis. The remaining funds will be raised through a special fee—three cents added to the retail price of fuel, paid by citizens and businesses.

During the session, New Serbian Democracy (NSD) MP Dejan Đurović questioned the minister about the status of the tender and asked when the Hydrocarbons Administration would initiate the tender for oil reserves storage. He also raised concerns about the ongoing issue with the “Jugopetrol” company and whether it could jeopardize the process. Đurović further referenced Bulgaria’s experience with EU accession, where laws were adopted rapidly based on English-language documents that many deputies were unfamiliar with, warning that Montenegro could face a similar situation if such important laws are rushed through Parliament.

Šahmanović assured that the law is essential for meeting EU requirements, particularly regarding oil reserves post-2024. However, the issue of where the reserves will be stored, and the challenges with companies like “Montenegro bonus” and “Jugopetrol,” remains unresolved. This situation could pose a significant obstacle as the country prepares to meet EU standards in the energy sector.

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