Croatia: Oil reserves in Jadran sea attracts US and Russian companies, reserves estimated to 700 milltons

21. May 2013. / SEE Energy News

Leading world companies are interested for oil reserves and its exploration in Croatia. Skeptics think that investors will destroy Jadran sea and that there will be more ecological problems than usefulness.

Russians and Americans are waiting on Croatia to make a new law which will enable extraction of oil and gas from Jadran and first wells can be set next year already. The law is in procedure and it can be adopted very quickly and many leading world companies are interested for oil wells on Jadran.

American Company “Exon” has already showed some interest. This company would invest in gas terminal on Krk and this can be salvation of Croatia GDP which is drowning because Croatia desperately needs investments. Russians want research rights on Jadran also and more and more Italian, French and English Companies that are interested, too. The problem is skeptics as always and there are a lot of them and they think that foreign investors will destroy Jadran and that there will be more ecological problems than usefulness.

188 oil wells are on Italian side of Jadran and only 15 oil wells are on Croatian side in ownership of INA. Croatian Oil Company INA had had a monopoly before it went in Hungarian hands and big part of need for gas and oils is provided from Jadran.

-Oil reservoirs on Jadran are estimated to 700 million tons and it is clear that there is an interest of foreign investors- famous Croatian expert for oil exploitation, Mirko Zoric, said.

While Croatia is opening a possibility of research on Jadran to investors, there is a fear that Russian and American companies will drill everything they can and the final effect on the state won’t be profitable. Every tenth drilling was with oil, but business turned out to be very successful.

-“Ina Naftaplin” has earned around 20 billion dollars in 50 years and it always was a part of oil company that brought the biggest income. Croatia has no more money for big researches and only foreigners can do that- Jasminko Umicevic, the consultant who is very familiar with thinking circles in Croatian – Hungarian oil company, believes.

Platform and its surroundings is estimated to 250 million dollars which is a lot of money for big companies also so they usually associate and make consortiums. This will happen on Jadran and state expects 500 million dollars income. Oil and gas business in Croatia will bring tens millions of dollars in future but we need to be patient and to wait on research results first. Optimistic forecasts are saying that business on Jadran can bring GDP increase by 3% to Croatia.

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