Croatia: Exploration Tender Goes Live
Croatia has published its international tender for oil and gas exploration blocks in the Adriatic Sea, hoping to launch production in five years. The tender was launched on 2 April, and will be open for seven months, with concessions expected to be awarded in early 2015 at the latest. Croatia hopes to attract around $2.5 billion in exploration investment, and so far Exxon Mobil, Shell and Italy’s Eni (Agip unit) have expressed interest. Up for tender are 29 offshore blocks ranging between 1,000 and 1,600 square kilometers. Exploration concessions will likely be given for five years with extension possibilities, while exploitation concessions will be 25 years.
Interested investors can bid on a limited number of blocks. OP Tactical is working with potential investors to help determine the suitability of certain blocks based on their location and what geologists expect to find in terms of gas versus crude. OP Tactical also takes potential investors through the regulatory climate, as well as setting up introductions with potential partners and power brokers, with full spectrum due diligence. There will be some hindrances in the form of environmental protests, as the drilling could harm the local fishing and tourism industries, which account for a large part of the country’s current revenues. (For more information on this venue and how to get a foothold, contact OP Tactical.)
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