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Slovenia Business Week no. 27: Petrol Sets Up Joint Venture with Montenegro Bonus

Slovenian energy company Petrol and Montenegrin oil company Montenegro Bonus signed on Tuesday, 24 July a contract on a 50:50 joint venture, Petrol Bonus

Slovenian energy company Petrol and Montenegrin oil company Montenegro Bonus signed on Tuesday, 24 July a contract on a 50:50 joint venture, Petrol Bonus.

Petrol has committed itself to invest EUR 154m in the company in the coming five years, while 162 new jobs are expected to be created in this period.

Petrol CEO Marko Kryzanowski told the press in Cetinje that Petrol Bonus wants to develop the energy sector in Montenegro, build and reconstruct energy infrastructure in line with European standards, and trade in petroleum products.

While planning a retail network of service stations and storage capacities, Petrol and Montenegro Bonus have also expressed interest for cooperation in electricity, gas and ecology.

The goal of Petrol Bonus for the coming five years is to sell around 150,000 tonnes of oil and around 20,000 tonnes of gas.

According to Montenegro Bonus chairman of the board Vojin Vlahovic, the joint venture is another proof of the all-around cooperation between Slovenia and Montenegro, with the project bringing benefits for both counties.

Vlahovic added that the two companies have expressed readiness to cooperate in Montenegro, as well as in the broader region, including Bosnia-Herzegovina, Serbia, Kosovo, Albania and Macedonia.

Montenegro Bonus, which is in outright state ownership, but awaiting privatisation, managed to break even in 2006, the company's CEO Branko Kascelan meanwhile said.

While adding that Montenegro Bonus was also in the black this year, Kascelan would not comment on the value of the company. He said it was worth enough to cover its share in setting up a joint venture with Petrol. The cash investment of the Montenegrins into the joint company is EUR 5,000.

Petrol submitted on 21 May a bid after a public invitation for bids had been published by the Montenegrin government on 6 April. Offering EUR 154.5m, Petrol bettered bids by Croatia's Ina (EUR 130.5,) and Hungary's Mol (EUR 105.15m).

Petrol Bonus will be seated in Cetinje and will have a three-member management board.

Source: Slovenian Press Agency STA

Author: STA, Slovenian National Press Agency