2 minutesFollowing-up a previous announcement made by HELLENIC PETROLEUM S.A. on 31/07/2006, the following should be noted with regard to the above subject:
The Government of Montenegro, in its letter dated 08/08/2006 addressed to JPK, a subsidiary of HELLENIC PETROLEUM S.A. announced its unilateral decision to terminate the agreement with JPK on rights for Exploration and Production for Oil and Gas in the offshore area of Ulcinj (Block 3).
It should be noted that, the Management of Hellenic Petroleum, during the last couple of years, had repeatedly requested from and negotiated with the Government of Montenegro some necessary adjustments to the institutional framework governing the Oil and Gas E&P in the country, so as to harmonize it with the international practice, as the existing framework made it economically unattractive and unfeasible for HELLENIC PETROLEUM S.A., or any other international oil company, to carry out the required expensive exploration works. This had also been the main reason why the previous foreign investor had not proceeded with the respective investments either.
HELLENIC PETROLEUM S.A. reserving all its rights, is currently reviewing the new conditions developing as a result of the unilateral decision made by the Government of Montenegro and shall respond accordingly, aiming at safeguarding and promoting its interests in the area.
Furthermore it is noted that HELLENIC PETROLEUM S.A., through its subsidiary JPK, is the owner of the rights for Exploration and Production for Oil and Gas in the offshore area of Prevlaka (Blocks 1 & 2) and maintains a leading position in fuels marketing in Montenegro, being one of the largest foreign investors in the country.