- Title: BOSNIA: Bosnian region and Shell company seal preliminary exploration deal
- Date: 3rd November 2011
- Summary: TUZLA, BOSNIA AND HERZEGOVINA (NOVEMBER 2, 2011) (REUTERS) HOUSES IN SUBURB OF EASTERN TOWN OF TUZLA VARIOUS OF OIL PUDDLES / OIL COMING OUT FROM UNDERGROUND SARAJEVO, BOSNIA AND HERZEGOVINA (NOVEMBER 3, 2011) (REUTERS) BUILDING OF GOVERNMENT OF BOSNIA'S FEDERATION FEDERATION PRIME MINISTER NERMIN NIKSIC AND FEDERAL MINISTER FOR ENERGY AND INDUSTRY ERDAL TRHULJ SIGNING MEMORANDUM WITH SHELL'S MARCUS ANTONINI AND MICHAEL FOLEY BOSNIA'S FEDERATION GOVERNMENT FEDERATION PRIME MINISTER NERMIN NIKSIC GIVING EXAMPLE OF OIL COLLECTED IN TUZLA REGION TO SHELL'S MARCUS ANTONINI SHELL'S COMMUNICATION MANAGER KAMELIA SLAVEYKOVA TALKING TO JOURNALISTS (SOUNDBITE) (English) SHELL'S COMMUNICATION MANAGER FOR CEE AND TURKEY, KAMELIA SLAVEYKOVA, SAYING: "We believe that this is a first step in a process working together, co-operating with the government, and the aim of this memorandum of understanding is to digitise the geological data and to do initial screening which we believe gives us a good insight for the hydro-carbon potential in the country." TUZLA, BOSNIA AND HERZEGOVINA (NOVEMBER 3, 2011) (REUTERS) VARIOUS OF OIL ON GROUND SARAJEVO, BOSNIA AND HERZEGOVINA (NOVEMBER 3, 2011) (REUTERS) BOSNIA'S FEDERATION PRIME MINISTER TALKING TO JOURNALISTS (SOUNDBITE) (Bosnian) BOSNIA'S FEDERATION PRIME MINISTER, NERMIN NIKSIC, SAYING: "On behalf of the government I can express my pleasure that such a big company has come to Bosnia and Herzegovina and that it will conduct explorations here." SLABINJA, BOSNIA AND HERZEGOVINA (NOVEMBER 3, 2011) (ORIGINALLY 4:3) (REUTERS) VARIOUS OF JADRAN NAFTAGAS VEHICLES IN FIELD (SOUNDBITE) (Russian) MAIN GEOLOGIST FOR JADRAN NAFTAGAS COMPANY, ALEXANDER MELNIKOV, SAYING: "We have started working in this beautiful area and this work will allow us to develop oil industry in the future." JADRAN NAFTAGAS MACHINES IN THE FIELD
- Embargoed: 18th November 2011 12:00
- Keywords:
- Location: Bosnia and Herzegovina
- Country: Bosnia and Herzegovina
- Topics: Business,International Relations,Politics,Energy
- Reuters ID: LVA728Y09K6MF6V6EVAC0EG1R22H
- Story Text: Bosnia's Muslim-Croat federation government signed a preliminary deal on Thursday (November 3) with Royal Dutch Shell Exploration Company to survey potential natural gas and oil fields.
The federation government has revived exploration plans made before Bosnia's 1992-95 war, when research revealed the potential for oil in the north and south.
"We believe that this is a first step in a process working together, co-operating with the government, and the aim of this memorandum of understanding is to digitise the geological data and to do initial screening which we believe gives us a good insight for the hydro-carbon potential in the country," said Kamelia Slavyekova, Shell's communication manager for CEE and Turkey.
Government officials, who also want other foreign companies to help tap potential energy reserves, said oil and gas exploration was strategically important for a region that imports most of its crude from Russia.
"On behalf of the government I can express my pleasure that such a big company has come to Bosnia and Herzegovina and that it will conduct explorations here," said Bosnia's Federation Prime Minister Nermin Niksic after the signing ceremony.
"The government is determined to intensify economic development and attract foreign investment into hydrocarbon resources, in which Shell, in particular has vast experience," the Federation's government said in a statement.
Under the deal, Bosnia's largest engineering group, Energoinvest, the local partner in the original project, will hand over all documentation related to pre-war research to Shell to help the company conduct initial screening.
The government said that Shell would provide expertise and equipment to help determine the extent of any fossil fuel reserves and whether it would be profitable to tap them.
If the research proves promising, drilling is expected to start in 2013, although Energy Minister Erdal Trhulj has said there may be a tender for rights to exploit the fields.
Meanwhile, Jadran Naftagas, a joint venture of Russia's Neftegazinkor, a unit of state-owned Zarubezhneft, and Serbian oil firm NIS, on Thursday started exploration of potential oil fields in Bosnia's other autonomous part, the Serb Republic.
"We have started working in this beautiful area and this work will allow us to develop oil industry in the future," said Alexander Melnikov, main geologist for Jadran Naftagas company.
The company will conduct a geological and seismic survey in which it will invest $41 million after it won a 28-year oil exploration concession from the Serb Republic government. - Copyright Holder: REUTERS
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