Montenegro is set to commence the refurbishment of oil storage tanks at the Port of Bar in February, following a contract signing with a consortium led by Croatia’s S.A.K.Z. and several local firms. The project, valued at approximately €1.74 million excluding VAT, is expected to take nine months to complete. This initiative is part of Montenegro’s efforts to align with EU reserve obligations.
The refurbishment will focus on the adaptation and modernization of specific petroleum storage tanks, namely R11, R12, and R18. Preparatory discussions have already taken place involving contractors, supervisors, and Jugopetrol, the terminal operator. The contractor has secured a performance guarantee amounting to 10% of the contract value and has also provided a professional liability insurance policy worth €500,000. This marks the third attempt at tendering for this project, after previous attempts were hindered by underestimated costs and invalid bids.
This refurbishment is deemed essential for establishing mandatory oil reserves in accordance with EU regulations. Following the completion of all legal procedures related to this project, Montenegro plans to issue a new tender for diesel procurement. This comes after an earlier urgent tender worth €11 million was canceled due to a non-compliant bid.
As part of its reserve strategy, Montenegro’s hydrocarbons authority aims to allocate between €9 million and €12 million in 2026 for the acquisition of 12,000 to 16,000 tons of diesel. This funding will be sourced from a fuel levy. The diesel is intended for storage in the upgraded tanks at the Port of Bar, with contingency plans for temporary storage in Montenegro, Croatia, or Italy if delays occur during the refurbishment process. The estimated cost for such temporary storage is around €5 per ton per month.
