The Ministry of Energy and Mining has begun negotiations with "Jugopetrol" regarding the storage of the first quantities of state oil reserves that should be acquired by the end of December, and depending on the commercial offer of this private company, as well as companies outside Montenegro, a decision will be made where the reserves will be stored.
"Vijesti" was officially told this by the Ministry of Energy, which this week announced the third tender for the adaptation of the reservoirs in Bar, owned by "Montengrobonus", where supplies should be stored.
Since the reservoirs have not yet been adapted, the state must find a location where it will store the first oil supplies.
In December last year, the Parliament adopted the Law on Security of Supply of Petroleum Products, which is essential for the closure of Chapter 15 (energy) and requires the formation of oil reserves.
By the end of this week, the Hydrocarbons Administration is to announce a tender for the first procurement of state oil reserves, while private oil companies Jugopetrol, Ina Montenegro and Petrol Montenegro, which by law are required to form reserves together with the state for this year, have already procured their quantities. The Administration is to procure 60 percent, and private companies 40 percent, of the total prescribed obligation that Montenegro has.
The Ministry of Energy said that together with the Hydrocarbons Administration, they are implementing all activities with the aim of ensuring that oil reserves are secured within the legally prescribed deadlines.
"In this context, public calls are being prepared for the procurement of the first quantity of mandatory reserves of petroleum products, in accordance with the annual Plan for the Formation of Mandatory Reserves of the Hydrocarbons Administration for 2025. In parallel with this activity, actions are being taken to select the most favorable offer either in the country or abroad for the storage of mandatory reserves. "Given that the reconstruction of state oil storage facilities has not yet begun, it is necessary to rent storage space for the reserves that the Hydrocarbons Administration plans to purchase in the fourth quarter of this year. Available storage capacities for rent in Montenegro are at the terminal in Bar, managed by the company "Jugopetrol". If the commercial conditions at the terminal in Bar are not the most favorable, the Hydrocarbons Administration will be obliged to provide storage capacities abroad, guided by the best market conditions, but also by the distance of the terminals themselves, bearing in mind that the location of the tanks in which the mandatory reserves of petroleum products are stored is an extremely important parameter for the security of supply of petroleum products," the Ministry of Energy explained.
They added that regardless of whether the storage will be implemented domestically or abroad, the ministry's focus is on fulfilling the legal obligation to form reserves. To that end, all submitted offers will be considered, including international terminals.
"The process of purchasing reserves and securing the necessary storage capacities must be conducted in parallel, because both processes are conditioned by the amount of reserves that will be secured, which will depend on the amount of financial resources collected based on the fee for mandatory reserves and the price of the goods at the time of purchase. In any case, the storage facilities must be secured before the actual delivery of petroleum products," the Ministry of Energy said.
The ministry explained that the second tender for the adaptation of the reservoir was cancelled because none of the bids met the prescribed conditions, and that given the specificity of the project, which requires exceptional expertise and the highest quality standards, the Ministry remains consistent in its stance not to compromise when it comes to the safety and reliability of infrastructure capacities.
"Although the tender for the adaptation of oil reservoirs in Bar was not successfully completed in the second attempt, this will not significantly affect the deadlines for the formation of state oil reserves," the Ministry of Energy stressed.
They further explained that by combining the quantities of reserves that importers of petroleum products are legally obligated to provide with the reserves formed by the Hydrocarbons Administration, almost two-thirds of the total legal obligation will be covered.
"Thanks to these coordinated measures, the Ministry is confident that the legal deadlines will be met, and that the energy security of the country, in terms of oil reserves, will be adequately protected," the Ministry of Energy said.
The Ministry of Energy this week announced the third tender for the adaptation of reservoirs in Bar owned by "Montenegrobonus" and which are supposed to store supplies.
"Jugopetrol" for a deal, but they are not disclosing the details of the offer
Jugopetrol told "Vijesti" that as of September 15th of this year, they have fulfilled their legal obligations regarding strategic reserves, currently storing physical supplies in the company's tanks at the terminal in Bar.
"At the same time, the company remains open to the possibility of storing additional quantities of mandatory state reserves in Bar, in accordance with applicable legislation, available capacities and business needs. Jugopetrol's priority remains fully compliant operations with regulatory requirements, while supporting the reliable functioning of the energy market," Jugopetrol said.
This private company did not specify what terminal capacities in Bar are available for storing state reserves, what they can offer the Government in negotiations, and whether they expect a positive outcome of the negotiations.
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