Montenegro Plans Petroleum Fund

Montenegro plans to deposit the bulk of its future oil revenues into a special fund styled after the sovereign wealth fund of this type that operates in Norway, the country's economy minister, Vladimir Kavaric, said.

In May, Montenegro said it had received three bids in a public tender to award concessions for offshore oil and gas exploration and production and that it plans to wrap up the selection of a partner by the end of 2014.

The country's fiscal policy calls for the oil revenues not to be allocated as budget funds but rather the bulk - 80% - will be directed to the petroleum fund, like Norway does, Kavaric was quoted on Monday as saying on the website of the economy ministry.

The decision on defining offshore blocks for the award of concession contracts for production of hydrocarbons includes 13 blocks totaling 3,191 square kilometres in area.

Bids in the Montenegrin tender were filed by three partnerships - Marathon Oil Corporation and OMV; Eni S.p.A. and Novatek; and Energean Oil &Gas and Mediterranean Oil&Gas.

Source:SeeNews