Page 15 - EurOil Week 43 2021
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EurOil                                      NEWS IN BRIEF                                             EurOil

       Slovenian parliament                says that promoting oil extraction is not in   done much to transform Croatia’s image
                                              Environment Minister Simonas Gentvilas
                                                                                   Sanader was widely credited with having
       rejects motion to ban               line with the Green Deal’s priorities and the   from one of a former war-torn Balkan
                                           goal of producing energy from renewable
                                                                                backwater to a genuinely credible candidate
       hydraulic fracking for fourth       sources.                             for admission to the EU. However, he has
                                                                                also become a symbol of corruption in
                                              “Oil extraction in the vicinity of protected
       time                                areas poses far more risks than potential   Croatia.
                                                                                   He was previously sentenced for
                                           benefits for the country,” he said on October
       The Slovenian parliament rejected an   25.                               accepting a €10mn bribe from Hernadi, but
       opposition-sponsored motion to ban     The reasons for the refusal include   in 2015 the Croatian Constitutional Court
       hydraulic fracking in Slovenia on October   opposition from the Kintai community and   annulled the verdict.
       26, news agency STA reported.       the fact that almost all of the requested zone   In October 2018 he was sentenced to
         The motion to amend the mining act was   covers tourism and protected environmental   two and a half years imprisonment for war
       filed in September by the opposition Left   areas, according to the press release.    profiteering in a retrial of the so-called
       party, the List of Marjan Sarec (LMS) and   Also, there are cultural assets in the area,   Hypo Bank Affair. Six months later, he
       Social Democrats (SD).              it said, noting that the general plan adopted   received another sentence in connection
         This was the fourth attempt to ban   in September provides for the development   to the Planinska Affair, that concerned the
       fracking, which would automatically prevent   of tourism there.          acquisition of a building by the regional
       drilling plans of the British oil and gas   Some 36 oil wells in 13 fields are   development ministry at an inflated price.
       company Ascent Resources in Petisovci field,   currently in use in Lithuania, with their total
       according to the article.           production down by 21% in 2020 from 2019
         Ascent Resources has already initiated   to 38,000 m3.                 Eni and Novatek to
       international arbitration proceedings against
       Slovenia over a fracking dispute.                                        announce exploratory
         The dispute relates to the refusal of the   Croatia’s supreme court
       Slovenian authorities to grant a permit for                              drilling results from
       hydraulic fracturing at the Petisovci gas   confirms guilty verdicts
       field, after the state failed to put forward a                           Montenegrin offshore by
       damages proposal.                   for former PM, MOL head in
         As part of direct pre-arbitration                                      end-2021
       settlement discussions Ascent Resources   bribery case
       had submitted a damages calculation to                                   The results of the exploratory oil and gas
       the Slovenian government totalling over   Croatia’s supreme court said on October   offshore drilling in Montenegro carried
       €100mn.                             25 it has upheld guilty verdicts against   out by a tie-up of Italy’s Eni and Russia’s
         Ascent holds a 75% interest in the   former Croatian prime minister Ivo Sanader   Novatek will be announced by the end of
       Petisovci gas field in Slovenia, with its   for taking a bribe from MOL head Zsolt   December instead of end-September when
       partner Geoenergo holding the remaining   Hernadi, dismissing appeals by the USKOK   they were previously expected, daily Vijesti
       25% through a concession signed in 2002   anti-corruption office and the defendants.  reported on October 23.
       with a term of 19½ years, which is due for   At the end of 2019, Sanader was   The delay was due to unexpected
       renewal in 2022.                    sentenced to six months in jail, while   difficulties in the drilling process.
                                           Hernadi got a two-year jail sentence. The   “[D]ue to high pressure and abrasive
                                           verdicts were appealed by both USKOK and   effect on the equipment, the concessionaire
       Lithuanian firm contests            the defendants.                      is forced to change tools more often, so the
                                                                                drilling process is somewhat slower than
                                              The case, that has dragged on for around
       decision to deny it permit to       10 years, concerns the privatisation of   expected. Preliminary results are expected
                                                                                in December,” Vijesti quoted the capital
                                           Croatian energy company INA.
       extract oil                         Sanader a €10mn bribe in exchange for   investment ministry as saying in a notice.
                                              The court found that Hernadi had given
                                                                                  The consortium started the exploratory
       Minijos Nafta, a Lithuanian-Danish-Polish   allowing MOL to take a dominant position   drilling in March at a depth of 6,530
       joint venture, announced on October 25   in INA.                         metres in the sea between Bar and Ulcinj,
       it will contest the environment ministry’s   According to the supreme court, Sanader   and said it would last four and a half to six
       decision not to issue it a permit to extract   used his position and authority to make sure   months.
       oil in Kintai, in the western district of Silute,   that Croatia signed the agreements in which   The drilling should determine the
       without a tender.                   the demands MOL made during negotiations   potential of the deposit, while the
         Minijos Nafta is now using eight oil   on the agreements were accepted.  production could start three to five years
       fields in Klaipeda and Silute Districts and is   The payment of the bribe was arranged   after the completion of the first drilling.
       extracting oil from 15 wells.       via the conclusion of fictitious agreements   In case of a positive result, the
         The company says it extracted 45,100   on consulting and other services with one   consortium’s next step would be to start
       barrels of oil in the first nine months of this   company, which received €5mn in 2009 and   developing the drilling site that would
       year, compared to 50,600 barrels extracted   was supposed to pay it to Sanader after some   last between two and three years. Oil
       during the same period last year.   time, while the payment of the other €5mn   production could begin in 2024.
         Minijos Nafta has been seeking to extract   was never made, the supreme court said.  Montenegro has so far concluded two
       oil in Kintai without a tender since 2003.  Currently, MOL owns 49% of INA and   concession agreements for offshore drilling
         Earlier in the day, the Lithuanian   the Croatian state owns 45%.      in the region of Ulcinj and Bar.
       Environment Ministry refused to issue   Sanader was the longest-serving prime   The other contract was signed in
       Minijos Nafta a permit to extract oil in   minister in post-independence Croatia,   2017 with the London-based company
       Kintai.                             holding the post from 2003 to 2009.  Energean, which currently is looking for



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