The signing of HRK 240 million worth contracts marks the launch of the Medjimurje project

  • Medjimurje project aims at kicking off production on three gas fields
  • Commercially viable hydrocarbon reserves estimated at roughly 1 billion m3
  • The entire project is worth HRK 360 million
  • Contracts were signed with four Croatian consortiums
  • Works on building the facilities and delivery pipeline should be completed mid next year

Zagreb, January 14 – INA today signed contracts worth a total of HRK 240 million with four Croatian consortiums, two led by STSI, member of INA Group, and one by Koncar – Inzenjering za energetiku I transport and Djuro Djakovic Holding each. The contracts refer to the Medjimurje project and kicking off production on three gas fields – Vuckovec, Vukanovec and Zebanec. The commercially viable hydrocarbon reserves are estimated at roughly 1 billion m3.

The contracts were signed by Mr Zoltán Áldott, President of the Management Board of INA, Mr Ivan Novakovic, President of the Management Board of STSI, Mr Vladimir Kovacevic, President of the Management Board of Djuro Djakovic Holding and Mr Stjepan Dragicevic, member of the Management Board of KONCAR – Inzenjering za energetiku i transport, in the presence of Economy Minister Ivan Vrdoljak and Head of the State Property Management Administration (DUUDI) Mr Mladen Pejnovic.

“The Medjimurje project is one of INA’s most important investment projects, worth more than HRK 360 million, with additional about HRK 60 million invested in the project in previous years. Its significance for our company and for Croatia in general is reflected in the fact that the planned commercially viable gas reserves are about 1 billion cubic metres, which accounts for more than a third of the total annual gas consumption in Croatia. INA’s experts have been developing this project for several years and we are proud to have met all preconditions for kicking off the works. We are pleased that competitive Croatian companies have won the tender and I believe we can establish successful partnership with them,” – said Mr Zelimir Sikonja, Executive Director for Exploration and Production.

Five production wells have been drilled and equipped as part of the project so far. A 73 km collection and transport system should be built to allow for shipping of the produced gas to the central gas station (CGS) Molve for further processing and purification. Purified gas would then be delivered to consumers via the transmission system, while the separated carbon dioxide would be injected into Zutica and Ivanic oil deposits as part of the EOR (Enhanced Oil Recovery)  project.„Since 2009 we have invested more than HRK 3.2 billion in domestic projects, and around HRK 800 million in exploration and production in the first nine months of 2013 alone, thus doubling the investments compared to the same period in 2012. We are pleased to have continued our investment cycle with this project. We have received support by state authorities and we are hoping that tenders for exploration blocks will be announced soon, so we could initiate further investments in Croatia,” concluded Mr Zoltán Áldott, President of the Management Board of INA.

The contracts signed today cover the construction of the facilities for Vuckovec, Vukanovec and Zebanec fields, as well as reconstruction of the existing facilities in the CGS Mihovljan. Furthermore, a delivery gas pipeline will be built between the Medjimurje junction and CGS Molve. All the vendors involved in these works are Croatian companies.
“For our company being part of this remarkable project is a great acknowledgment of the trust in our quality and competence. We are certain we will once again justify the trust laid in us and provide a quality and efficient execution of the contracted works within the set deadlines,” said Mr Ivan Novakovic, President of the Management Board of STSI.

“It is a great pleasure that INA recognised Djuro Djakovic Holding as a reliable business partner who will be leading the works on Vukanovec field facilities, along with other distinguished companies. In this project INA has acknowledged our know-how, reliability and competence, and I believe this deal will be carried through to the mutual satisfaction of all partners,” noted Mr Vladimir Kovacevic, President of the Management Board of Djuro Djakovic Holding.

“We wish to thank INA for granting us the turnkey job of building the Zebanec field facilities and reconstructing the existing facilities of the CGS. We are convinced we will continue with a successful business partnership with Ina-Industrija nafte d.d., duly meeting our contractual obligations,” said Mr Stjepan Dragicevic, member of the Management Board of KONCAR – Inzenjering za energetiku i transport.

Such a major gas discovery will also have a positive impact on the quality of life in the local communities, since INA will be paying a mining royalty that will certainly help budgets of the municipalities the fields are located in. INA has been traditionally helping the communities it operates in, and such a relation is a prime example of a successful cohabitation between industry and local communities.

About INA Group
INA Group has the lead role in oil business in Croatia and plays a major part in oil and gas exploration, oil refining and distribution of oil and oil derivatives in the region. INA Group is made of a number of affiliates fully or partially owned by INA, d.d. The Group is seated in Zagreb, Croatia. Apart from Croatia, INA today has upstream projects in Angola and Egypt. Oil refining is done in INA’s refineries in Rijeka and Sisak, while its retail network consists of 454 petrol stations in Croatia and the region.

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