The Montenegrin Ministry of Mining, Oil and Gas plans to relaunch the tender for the reconstruction of state-owned oil storage facilities in the coastal city of Bar, increasing the estimated project cost by 20% to €2.13 million. The Ministry has requested additional government funding to support this adjustment.
The project is crucial for Montenegro to comply with European Union regulations, which require member states to maintain oil reserves equivalent to three months of consumption in case of supply disruptions. The EU has allocated €7.5 million for this initiative, with €1.8 million designated for the refurbishment of the Bar oil storage facility and the remainder for building up initial reserves.
A previous tender, valued at €1.8 million, failed in February due to a lack of bids. While several companies expressed interest and inspected the site, they raised concerns about the estimated project cost. Rising prices for materials and services since the third quarter of 2023, when the project’s financial assessment was conducted, contributed to the reluctance to bid. As a result, the tender commission and industry experts have reassessed the modernization costs.
Under new legislation on strategic oil stock reserves, adopted in November, Montenegro aims to fully establish the required reserves by 2029. The government expects to begin accumulating these reserves in the fourth quarter of 2025, following the completion of the Bar facility’s renovation.
Beyond Bar, Montenegro has additional oil storage capacities, including a 24,700-cubic-meter facility in Bijelo Polje, which also requires modernization, and a 10,000-cubic-meter site in Lipci, near Kotor.
