BOSNIA AND HERZEGOVINA: Bosnia looks for alternative sources of fuel in wake of gas crisis

Record ID: 731342

  • Title: BOSNIA AND HERZEGOVINA: Bosnia looks for alternative sources of fuel in wake of gas crisis
  • Date: 16th January 2009
  • Summary: PALE, BOSNIA AND HERZEGOVINA (JANUARY 14, 2009) (REUTERS) PILE OF DISUSED WOODEN PLANKS VARIOUS OF WORKER PUTTING WOOD IN STOVE BRIQUETTE-MAKING MACHINE FACTORY OWNER AND PRODUCTION MANAGER, OBRADOVIC ZORICA, LOOKING INTO MACHINE BRIQUETTES MOVING THROUGH MACHINE WOOD BRIQUETTES DROPPING OUT OF MACHINE ZORICA PUTTING BRIQUETTES IN BOX (SOUNDBITE) (Serbian) OBRADOVIC ZORICA, FACTORY OWNER AND PRODUCTION MANAGER, SAYING: "I think that the fuel crisis worked in my favour by familiarising our people with wood briquettes. I think that once they have tried them, they will use briquettes more than gas." WORKER CARRYING DISUSED WOODEN PLANKS WOOD BRIQUETTE FACTORY WOOD BRIQUETTES FALLING INTO BAG PILE OF DISUSED WOODEN PLANKS IN FRONT OF WOOD BRIQUETTE FACTORY
  • Embargoed: 31st January 2009 12:00
  • Keywords:
  • Location: Bosnia and Herzegovina
  • Country: Bosnia and Herzegovina
  • Topics: Energy
  • Reuters ID: LVA7ZU450V8UXDTF1Q503WTEYTCI
  • Story Text: While the Bosnian government revives oil and gas exploration plans dating back to before the 1992-95 war, small producers of recycled wood briquettes benefit from the gas shortage as the demand for the alternative fuels grows.
    In the wake of the recent energy crisis, the exploration of Bosnia's potential natural gas and oilfields is gaining momentum.
    In the years before the 1992-95 war, U.S and British researchers found oil deposits in both the north and the south of the country, and attention now turns to exploring these potential resources.
    Hajro Bilalic, resident of the village of Bare near Tuzla, made an interesting discovery while digging in his field some five years ago.
    "I tried to set it on fire and when it started burning I realised that it was something strange and not just water," said Bilalic.
    Bilalic is not yet profiting from his discovery but some interest has been expressed in buying the land from him.
    Bosnia's largest engineering group, Energoinvest, was the local partner in the original project with U.S and British firms.
    Last year the Muslim-Croat federation government ordered Energoinvest to draft a plan to explore five potential oilfields between 2008 and 2017.
    They will be the main company in charge of the project if it goes ahead.
    Energoinvest assistant manager Ibrahim Bosto explained that there are five potential locations that can be explored in Bosnia and Herzegovina.

    "There are estimates that each of these locations contains reserves of between 50 and 100 million barrels. It means that in a final calculation it may add up to 250 to 500 million barrels, which is relatively small quantity in comparison to the big world producers but it would be a significant quantity for Bosnia and Herzegovina," said Ibrahim Bosto.
    Five international companies have already expressed an interest in exploring Bosnia's potential oil reserves, and one of them has offered investment to build a refinery with a daily capacity of 50,000 barrels.
    The rights for oil exploration in the Serb Republic, an autonomous area of Bosniaand Herzegovina, were last year given to Russian company Zarubezhneft after it bought a majority stake in the Brod oil refinery there.
    While the current gas crisis is causing problems for most of the country's industry, small producers of wood briquettes across the country are having problems meeting the increased demand for their products.
    Eco-wood briquettes were produced mainly for export until Russian gas supplies through Ukraine were cut off, increasing local demand for alternative fuels.
    "I think that the fuel crisis worked in my favour by familiarising our people with wood briquettes. I think that once they have tried them, they will use briquettes more than gas," said Obradovic Zorica, owner and production manager of the factory.
    An argument between Russia and Ukraine over gas prices and supplies led Russian gas export monopoly Gazprom to cut the flow of gas to Ukraine, which in turn supplies many countries in central and eastern Europe, on January 1.
    Many countries in the region, including Bosnia and Herzegovina, suffered vastly reduced gas flows during an extremely cold winter spell with temperatures falling to well below freezing.
  • Copyright Holder: REUTERS
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