Cooperation, Environment in Focus at Adriatic Event
Transparency, regional cooperation, environmental protection and fostering competition are crucial principles in defining the Balkan Governments’ approach to the oil and natural gas industry.
This was emphasised by officials from Montenegro, Croatia and Albania who gathered in Budva, Montenegro at the Adriatic Oil & Gas Summit (AOG), which examined the latest opportunities and challenges of the sector in the Adriatic region.
Montenegrin Minister of Economy, Vladimir Kavaric, said that transparency, which is reflected in defining the rules of the game, through laws and enabling regulations and publicly available documents, should be exercised to the maximum extent possible.
He added that Montenegro is aware that it has to compete with other countries devoted to responsible management and efficient use of hydrocarbons.
"We are trying to create the best environment that will attract the best, and we are striving to encourage competition in this business, as we also know that private companies show their best in terms of innovation, approach and delivery, when facing competitive pressure," Kavaric underlined.
He said that this activity does not recognise national frontiers, as geology does not understand borders.
The officials agreed that success of neighbouring countries was only going to amplify opportunities for each other in attracting companies to take part in this sector.
Exploration of oil and gas in Montenegro so far, as well as activities in the Adriatic, indicate large prospectivity of the region. The basic prerequisites are proven for oil and gas production to take place in the south Adriatic geological basin, while direct confirmation of this fact is the production in Albanian, Croatian and Italian part of the basin.
When it comes to hydrocarbons, there is a requirement for exploration in the Balkans to complement other development policies in place, including in fields such as tourism and environmental protection. Officials emphasized that economic development is not possible without energy development.
Croatian Economy Minister Ivan Vrdoljak indicated that – as an EU member state – Croatia strongly supports the region on its European path, fully aware that the progress is achievable only if there are no outstanding issues with its neighbours.
Minister Vrdoljak commented on the current demands for a referendum on oil and gas exploration, noting that he would support a referendum on how to reduce the number of tankers with imported oil entering the Adriatic, as Croatia wishes to reduce risks and protect the environment, adding there is no possibility to hold a referendum before signing contracts with companies.
Speaking of tourism, the Croatian Economy Minister said that Istra is the most famous tourist destination in Croatia, and that the most gas has been pumped from these areas. He reiterated that Croatia has researched the oil potential of the Adriatic for 40 years, and that the best technologies in the field of environmental protection would be implemented.
Croatia’s obligation, as a member of the EU, was under obligation to implement strict environmental protection standards. If there is any solution from the EU legislation, we will include it, Vrdoljak emphasized.
Albanian Deputy Minister of Energy and Resources Iljir Bejtja told attendees that this country is in the process of introducing hydrocarbon laws which will regulate this area in more detail. He also emphasized that Albania is open to cooperation with all neighboring countries when it comes to natural gas.
"We do not want to be recognized by self-situated philosophy anymore. Albania is lagging behind in the exploration of gas, but the situation will soon be improved", Bejtja added.
Protests
Delegates to the Summit were met by protesters from environmental NGO's from Montenegro and Croatia, carrying banners “Stop the drilling of the Adriatic“, “Montenegro Oil Beauty“, etc.
Critics say that the benefits of oil and gas development are outweighed by the potential risks to the environment and the tourism sector.
Natasha Kovacevic, president of the Montenegrin “Green Home“ said that the protesters do not want someone to destroy the idea of an ecological Montenegro.
"We do not want to destroy our environment, our fishing and tourism, for which we have advocated for decades. We do not want to destroy the idea of an ecological Montenegro“, Kovacevic said.