The first revenues from oil and gas exploration and exploitation contracts, signed in June between the Croatian Government and INA and Canadian Vermillion Energy, began to flow into budgets of municipalities in Slavonija.
A total of about 400,000 euros has been paid so far to the accounts of about 40 municipalities in Slavonija in which territories the exploration works will be carried out. The received amounts varies from a few thousand to a few tens of thousand euros, depending on the exploration areas. Besides oil companies have paid additional 1.3 million euros to the state budget in contract signing fees.
The Croatian Agency for Hydrocarbons (HAZU) said that INA and Vermillion Energy are currently in preparation of annual work programs and exploration activities that are required to be implemented in accordance with signed contracts, which primarily include various studies that are required prior to starting any field works. HAZU explained that these fees will be paid during the entire exploration period in the amount of 53.4 euros per square kilometer per year. There is also an annual fee for the exploitation field area in the amount of 534 euros per square kilometer.
In June, Croatian Government has signed hydrocarbons exploration and exploitation contracts with two companies (Croatian INA and Canadian Vermillion Energy), but the contract with Nigerian Oando PLC has not been signed yet. In late March 2015, the Government adopted a decision according to which INA was awarded a license for one exploration area (Drava 2), Oando PLC also got license for one area (Drava 3), while Vermillion Zagreb Exploration, a daughter company of Canadian Vermillion Energy, received licenses for four exploration areas (Drava 4 and Sava 8, 9 and 10). The exploration and exploitation licenses are awarded for a maximum of 30 years, with the total exploration period of five years, transmits Serbia-energy.eu