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Seven companies interested in on-shore hydrocarbon exploration in Croatia

ZAGREB, Feb 18 (Hina) - Seven companies have responded to the first public tender for on-shore hydrocarbon exploration and exploitation in Croatia, Economy Minister Ivan Vrdoljak announced at a press conference in Zagreb on Wednesday.

The seven companies have applied for all six exploration fields, proposing 19 different operating programmes. All offers were made by individual companies, rather than by consortiums, and several offers were made for the same fields, he said.

"We are extremely satisfied with the offers. These are very serious companies with great experience in oil and gas exploration worldwide, which use state-of-the-art technologies and, most importantly, meet the most demanding environmental standards," Vrdoljak said.

Vrdoljak said that the response to the tender was a confirmation of the soundness of the government's energy policy, which he said was aimed at making Croatia a regional energy hub. He added that great investments were expected in the Slavonia region, which would lead to greater employment.

Vrdoljak said that the first tender for on-shore exploration was only the beginning, because it did not cover even a third of the country, and would be followed by projects in central Croatia and the Dinaric Alps.

The Director of the Hydrocarbons Agency, Barbara Doric, said that the offers made by the seven companies would be evaluated over the next month, after which a selection would be made. She said that the names of selected companies would be known by the beginning of April at the latest.

Doric said that an environmental impact study was being prepared and that its first draft should be completed in mid-March. Contracts with selected bidders would be signed after the completion of a strategic evaluation, and the deadline for contract signing is July 18.

Speaking of the number of potential wells on shore, Vrdoljak said that it was expected to be higher than that of off-shore wells because they were cheaper and easier to execute and the structure of deposits was different.

Asked if he expected resistance from environmental organisations, as has been the case with oil and gas exploration in the Adriatic, Vrdoljak said that strict standards would be applied to protect the environment in Slavonia, especially drinking water and arable land.

The public tender for on-shore hydrocarbon exploration and exploitation closed at 2pm on Wednesday. The tender was issued in July 2014, comprising six exploration fields measuring from 2,100 to 2,600 square kilometres, located in the Drava and Sava river basins and the Eastern Slavonia region.

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