Montenegro Assigns Blocks to Energean

Greek upstream independent Energean has signed an exploration and production concession contract with Montenegro covering two offshore blocks.

The contract was signed by Montenegro economy minister Dragica Sekulic and Energean CEO Mathios Rigas in the state capital Podgorica March 15. It follows approval from Montenegro's parliament late 2016 and an announcement of provisional award of the offshore blocks in June 2016. Both blocks – 4219-26 and 4218-30 – are in the Adriatic in water depth of 50-100 metres near the Montenegrin coast and the town of Bar.

Total investment over a seven-year exploration period will be $19mn, including funding of a new 3-D seismic survey and drilling of one well. Energean plans to begin 3-D seismic acquisition on the two blocks in 1Q2018. Energean believes offshore Montenegro could be highly prospective for biogenic gas, but also on trend with recent oil finds in neighbouring northern Albania such as the onshore Shpirag-2 discovery. 

Prinos Beta platform offshore northeast Greece (Photo credit: Energean)

Rigas said: “We believe the geology [offshore Montenegro] to be similar to that in western Greece, where we have been exploring since 2014 onshore Ioannina, have a field development plan in progress offshore West Katakolo, and are ready to sign a new contract for a further block onshore Aitoloakarnania." Energean has operated the Prinos oil field in Greece, producing oil since 1981, and has an ongoing $200mn investment plan to boost production to 10,000 b/d oil there.

Mark Smedley