Croatia Awards Six Oil, Gas Blocks
Croatia has handed out oil and gas exploration licences for six blocks in its northern flatlands, state hydrocarbon agency Azu reported on August 29.
Croatia’s INA, a joint venture between the government and Hungary’s MOL, secured rights to the Drava-03 and Northwestern Croatia-01 blocks, while local group Crodex picked up licences for the Sava-11 and Sava-12 areas. Canada’s Vermillion Energy was awarded the Sava-07 block, while US-based Aspect was given Sava-06.
Croatia launched two oil and gas tenders last year in an effort to bolster investment in exploration. The deadline for bids in the contest for acreage in the northern Pannonian basin passed on June 28, while the second competition covering the less explored southern Dinarides region will remain open until September 10.
Authorities had offered seven Pannonian blocks spanning 14,272 km2 but only six attracted interest. The selected developers will now start contract talks with a view to initiating seismic work in the second half of 2020. The licences are valid for five years. If in that time a discovery is made, a 25-year exploration period is granted.
Croatia wants to kickstart oil and gas development to help reverse declining production and cut back on imports. Its last tender was held in 2014, with blocks going to INA and Vermillion. Since then the government has passed legislation making it easier for developers to move to the production phase at discoveries.
In related news, INA reported a gas find at the Drava-02 block in the northeast last month, flowing 53,000 m³/day from two gas-bearing intervals.