Regulation A Stumbling Block As Majors Take Notice Of Adriatic Potential
Future EU member Croatia is reportedly in talks with ExxonMobil , ConocoPhillips and General Electric regarding potential oil and gas exploration targeting the Adriatic Sea. Although Croatia does produce both oil and gas, output falls short of demand , leaving the country a net importer. Exploration in the Adriatic could unlock new sources of supply that would benefit both Croatia and its neighbours , wh ich are eager to reduce their reliance on imports from Russia.
Tapping new supplies is becoming more important as current gas output is set to peak around 3bn cubic meters (bcm) in 2013/14 . O fficials are currently considering the construction of floating liquefied natural gas ( F LNG) import terminal to meet demand , but the high co sts of imported gas could be problematic given that Croatia's impor t bill is also set to rise as a result of increased oil imports .
However , the absence of a clear regulatory framework is holding back interest Croatia's in offshore potential. Current exploration and production (E&P) is dominated by the INA Industrija and governed by an outdate d Mining Act , which fails to make specific provisions for oil and gas. Investor interest has been hurt by a lack of clarity and blocks offered for exploration in December 2011 were rescinded , as the tendering process was contested by bidders , who suggested it was insufficient to promote competition. The 30-day submission period, a failure to provide bidders with pertinent documentation and terms that were deemed unrealistic all provoked complains from interested parties.
|Output Lagging Demand In Gas...|
|Croatia's Natural Gas Production And Consumption (bcm)|