Shell has signed a preliminary deal with the Bosnian government to survey potential natural gas and oil fields.
The Moslem-Croat federation government has revived exploration plans made before the 1992-1995 Bosnian war, when research revealed potential oil reserves in the north and south of the country.
In a statement, the government said it wanted to “intensify economic development and attract foreign investment into hydrocarbon resources, in which Shell in particular has vast experience”.
Under the deal, Bosnian engineering group Energoinvest, which was involved in the original project, will pass all its pre-war research to Shell so it can carry out initial tests.
If the company concludes it would be profitable to tap the country’s reserves, drilling could start in 2013.
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