ONSHORE CROATIA Pannonian Basin Ongoing Bid Round
Dinarides Bid Round in preparation ONSHORE BIDDING ROUND FOR GRANTING LICENCES FOR EXPLORATION AND PRODUCTION OF HYDROCARBONS
1st Onshore Bidding Round for granting licences for exploration and production of hydrocarbons . 18 July 2014 – 18 February 2015 . 6 exploration blocks within Pannonian Basin . Awarded 5 licences for exploration and production of hydrocarbons . 4 Production Sharing Agreements signed with Vermilion Zagreb Exploration Ltd. (DR-04, SA-08, SA-09, SA-10) . 1 Production Sharing Agreement signed with INA-Industrija nafte Plc. (DR-02)
2nd Onshore Bidding Round for granting licences for exploration and production of hydrocarbons
. 7 exploration blocks . Remaining part of Pannonian Basin . Block DR-03 is also included, it was offered in 1st Onshore bidding round, but PSA was not signed BIDDING ROUND TIME FRAMEWORK, APPLICATION REQUIREMENTS
Bidders must satisfy: . Administrative requirements . Formal requirements . Legal requirements . Financial requirements . Technical requirements . Health, safety and environment requirements BIDDER SELECTION CRITERIA
. Technical, financial and professional capacities of the bidder
. The manners in which the bidder or the consortium plan to carry out the activities subject to the licence for the exploration and production of hydrocarbons
. Overall quality of the submitted bid
. Financial conditions included in the bid submitted by the bidder for issuing the licence for the exploration and production of hydrocarbons (estimated cost of performing minimum work programme)
. Any lack of efficiency or responsibility in any form which has been displayed in other countries by the petroleum economic entity in previous activities within the scope of the Licence
. Signature bonus, with the lowest amount set in the Decree on fees for exploaration and production of hydrocarbons BIDDER SELECTION CRITERIA
Criteria for exploration blocks SZH-05, SA-11, SA-12 Mark (up to) Weight %
2D seismic survey 40
3D seismic survey 5
Other surveys 15 First exploration phase Reprocessing of seismic data 5 70 (3 years) Gravimetry and magnetometry 5
Other 5
Number and depth od exploration wells 40
2D seismic survey 30 Second exploration phase 3D seismic survey 10 20 (2 years) Number and depth od exploration wells 60
Signature bonus 100 10 BIDDER SELECTION CRITERIA
Criteria for exploration blocks SZH-01, DR-03, SA-06, SA-07 Mark (up to) Weight %
2D seismic survey 5
3D seismic survey 40
Other surveys 5 First exploration phase Reprocessing of seismic data 2 70 (3 years) Gravimetry and magnetometry 2
Other 1
Number and depth od exploration wells 50
2D seismic survey 5 Second exploration phase 3D seismic survey 35 20 (2 years) Number and depth od exploration wells 60
Signature bonus 100 10 ONSHORE BIDDING ROUND FOR GRANTING LICENCES FOR EXPLORATION AND PRODUCTION OF HYDROCARBONS – PANNONIAN BASIN
. 2nd Onshore Bidding Round for granting licences for exploration and production of hydrocarbons include 7 blocks located in southwest and central Croatia and central Slavonia
. Exploration blocks: . Drava-03 (DR-03) . Sava-06 (SA-06) . Sava-07 (SA-07) . Sava-11 (SA-11) . Sava-12 (SA-12) . Sjeverozapadna Hrvatska-01 (SZH-01) . Sjeverozapadna Hrvatska-05 (SZH-05)
Nature parks and production areas are excluded from the offered blocks PANNONIAN BASIN SCHEMATIC GEOLOGICAL CROSS SECTIONS OF DEPRESSIONS SCHEMATIC LITHOSTRATIGRAPHIC SECTION STRATIGRAPHIC COLUMNS OF DEPRESSIONS GEOLOGICAL PLAYS
1. Miocene-Pliocene clastic and/or carbonate series draped over basement highs form the most significant play types in the basin (such play types are represented by Stratigraphic Column of Mura Depression Stratigraphic Column of Drava Depression Stratigraphic Column of Sava Depression post-rift compactional drape varieties)
2. Fractured and/or weathered basement (highs) with or without Miocene basal conglomerate and sealed by Miocene mudstones form a very important group of plays (Play types 1 and 2 are sometimes found together)
3. Miocene extension-related, tilted fault blocks containing reservoirs of various ages form an important group of plays (Pre-rift/Basement compactional drape)
4. Inversion-related play types are found in the anticlines associated with reactivation of strike-slip faults and include Miocene-Pliocene clastic reservoirs
5. Syn-rift-related, Miocene sandstone series truncated and sealed by post- rift mudstones (this play type formally may belong to type 1 plays) EXPLORATION BLOCKS OFFERED IN 2nd ONSHORE LICENCING ROUND
7 exploration blocks, with total accreage 14.272 km2, contain the following data:
. 10.016 km of 2D legacy seismic data in stk/mig format
. 1.796 km2 of 3D legacy seismic data in stk/mig format
All the data can be seen in our Data Room in Zagreb. If you are interested, please contact us at
Before visiting you will be provided with tendering documentation, data inventory and spatial data. SEISMIC LINE EXAMPLES
A B
A B
A B A B FISCAL TERMS MODEL
Exploration area Fee
Administration Exploitation area Fee Fee
Production Sharing
Production Signature Bonus Bonus
Royalty SUMMARY OF THE FISCAL TERMS
. Signature Bonus . Biddable subject to a minimum amount . Minimum of EUR 200.000 (1.400.000 HRK)
. Surface Fees . Exploration Phase - EUR 50 (400 HRK) per km2 of Agreement Area per year . Exploitation Phase - EUR 500 (4.000 HRK) per km2 of Agreement Area per year
. Contract Administration Fee . EUR 75.000 (600.000 HRK) per year . Payable for the duration of the contract, escalates by 4% per year
. Production Bonuses . OIL FIELDS - EUR 200.000 (1.400.000 HRK), payable at each of the following: . Start of commercial production . After each 50.000 boe of cumulative production, ending with 200.000 boe . GAS FIELDS - EUR 120.000 (900.000 HRK), payable at each of the following: . Start of commercial production . After each 25.000 boe of cumulative production, ending with 100.000 boe SUMMARY OF THE FISCAL TERMS
. Royalty . Calculated and payable after the end of each month . 10% of monthly production from the Agreement Area
. Production Sharing - Cost Recovery . Investor is entitled to recover 100% of its approved petroleum costs (Operative and Capital Expenditures) . Cost recovery ceiling is 70% of annual production less royalty . Unrecovered costs may be carried forward until they are fully recovered, or until agreement expiry of termination . Excess cost recovery is added to profit sharing pool (Profit Petroleum) . Production from Agreement Area remaining after the deduction of royalty and cost recovery is shared between the Government and the contractor, depending on R-Factor SUMMARY OF THE FISCAL TERMS
R-FACTOR (R) Investor’s Profit Share
. Production Sharing 0 < R ≤ 1.0 90% depending on R-Factor 1.0 < R ≤ 1.5 80%
1.5 < R ≤ 2.0 70% . R = X / Y R > 2.0 60%
. X = Cumulative Net Revenues (total net revenues received by the investor from the effective date of the PSA until the end of quarter preeceding the relevant quarter, which means total amount actually received by the investor for its share of Profit Petroleum and recovery of its Petroleum Costs in the Agreement Area, decreased for all Operating Expenditures)
. Y = Cumulative Capital Expenditures (all Capital Exploration, Development and Production Expenditures actually incurred by the investor from the effective date of PSA until the end of quarter preeceding the relevant quarter) Great potential
37 unevaluated oil and gas shows NEXT STEP - BIDDING ROUND FOR GRANTING LICENCES FOR EXPLORATION AND PRODUCTION OF HYDROCARBONS IN DINARIDI AREA
. After the announcement of the Bidding Round for issuing licenses for exploration and production of hydrocarbons in Pannonian area, the Agency has started with the preparation activities for the bidding procedure for Dinarides
. Dinaridi area is divided into 4 exploration blocks:
. Dinaridi-13 . Dinaridi-14 . Dinaridi-15 . Dinaridi-16
Exploration blocks are moved aside from coast line, and national parks and nature parks are excluded from them SEISMIC DATA
4 exploration blocks, with total accreage 12.134 km2, contain the following data:
• 441,86 km of 2D legacy seismic data (in stk/mig format and raw data)
• Total 545,98 km of 2D legacy seismic data (in stk/mig format and raw data) - whole area Dinarides Area – Wells and Seismic Data Keep your eye on Croatia! THANK YOU FOR YOUR ATTENTION EXPLORATION BLOCK DRAVA-03
Exploration block Drava-03
Accreage 2.545 km2
It stretches across: Virovitica-Podravina county Bjelovar-Bilogora county Osijek-Baranja county Požega-Slavonia county
It contains the following data: . 3.456 km 2D legacy seismic data . 985 km2 3D legacy seismic data EXPLORATION BLOCK SAVA-06
Exploration block Sava-06
Accreage 2.634 km2
It stretches across: Zagreb county Bjelovar-Bilogora county Koprivnica-Križevci county Krapina-Zagorje county Sisak-Moslavina county City of Zagreb
It contains the following data: . 1.846 km 2D legacy seismic data . 500 km2 3D legacy seismic data EXPLORATION BLOCK SAVA-07
Exploration block Sava-07
Accreage 2.032 km2
It stretches across: Bjelovar-Bilogora county Požega-Slavonia county Sisak-Moslavina county
It contains the following data: . 2010 km 2D legacy seismic data . 136 km2 3D legacy seismic data EXPLORATION BLOCK SAVA-11
Exploration block Sava-11
Accreage 1.665 km2
It stretches across: Karlovac county Zagreb county Sisak-Moslavina county City of Zagreb
It contains the following data: . 501 km 2D legacy seismic data EXPLORATION BLOCK SAVA-12
Exploration block Sava-12
Accreage 2.523 km2
It stretches across: Karlovac county Zagreb county Sisak-Moslavina county
It contains the following data: . 132 km 2D legacy seismic data EXPLORATION BLOCK SJEVEROZAPADNA HRVATSKA-01
Exploration Block Sjeverozapadna Hrvatska-01
Accreage 1.361 km2
It stretches across: Varaždin county Međimurje county Koprivnica-Križevci county
It contains the following data: . 1.566 km 2D legacy seismic data . 175 km2 3D legacy seismic data EXPLORATION BLOCK SJEVEROZAPADNA HRVATSKA-05
Exploration block Sjeverozapadna Hrvatska-05
Accreage 1.512 km2
It stretches across: • Krapina-Zagorje county • Varaždin county • Zagreb county • Koprivnica-Križevci county • City of Zagreb
It contains the following data: • 505,9 km 2D legacy seismic data EXPLORATION BLOCK DI-13
Accreage 3.556 km2
It stretches across • Karlovac county • Lika-Senj county • Primorje-Gorski Kotar county EXPLORATION BLOCK DI-14
Accreage 2.698 km2
It stretches across • Karlovac county • Lika-Senj county • Zadar county EXPLORATION BLOCK DI-15
Accreage 2.864 km2
It stretches across • Lika-Senj county • Šibenik-Knin county • Zadar county EXPLORATION BLOCK DI-16
Accreage 3.016 km2
I stretchess across • Split-Dalmatia county • Šibenik-Knin county