The international oil and gas company Shell Exploration Company B.V. from the Netherlands finished all previous analysis and formally submitted a letter of expression of interest to enter negotiations for concessions for the exploration and exploitation of oil, said the FB&H Minister for Energy, Mining and Industry Erdal Trhulj after a meeting with the Committee for monitoring the realization of a Memorandum that the FB&H government signed with this company two years ago.
The FB&H will be proposed an extension of the Memorandum for the year, due to the fact that negotiations to hand out concessions, in accordance with the current law and experience in the world, lasts for 6 to 9 months. The successful conclusion of negotiations would open the possibility for Shell to open a firm in Sarajevo by autumn of next year, and would start work on the exploration and exploitation.
The FB&H government and international oil and gas company Shell signed in November 2011 a two-year Memorandum on understanding that provides for exploration and exploitation of oil and gas in this entity. The Memorandum states that Shell, if it finds oil and gas, would begin exploitation of reserves in 2015.