HUNIG Assembly accepted work plan for 2017

29 November 2016
Stefanija Novak Zoroe
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In the presence of 200 members and guests HUNIG Assembly was held in the hall of the INA building in Šubićeva on 29 November 2016. At the beginning HUNIG Vice-president Dubravko NOVOSEL welcomed all present at the meeting, and in particular Ante ČIKOTIĆ, State Secretary in the Ministry of Environment and Energy, Barbara DORIĆ, President of Hydrocarbon Agency Management Board and Dario ČEHIĆ, member of INA Supervisory Board and invited them to address the audience.

The State Secretary Čikotić thanked for the opportunity to give an address on behalf of the newly established Ministry and stated that it is particularly important to strengthen investments aimed at implementation of major energy projects based on sustainable development and energy efficiency. This will certainly enable better positioning of Croatia on the energy map of Europe. The main focus is on the development of long-term energy strategy and attracting new investments to the energy sector. He stressed the importance of hydrocarbon exploration and production and the personnel potential of Croatia, which is confirmed by successes achieved by Croatian oil and gas professionals worldwide. In the closing of his address he pointed out the indisputable historic role of INA building in Šubićeva 29 where the Croatian Parliament passed decision on independence of the Republic of Croatia.

Barbara Dorić welcomed the tradition of holding HUNIG conferences which always include discussions about interesting and current topics from the field of energy, and oil and gas industry in particular.

The Assembly was also welcomed by Dario Čehić who said that top ranked Croatian politicians are aware of the fact of significant decrease in oil and gas reserves, but that they also expect to see a reversal of such trend, where, among others HUNIG experts should also contribute.

The meeting continued with five interesting lectures. The first one, titled THE ROLE OF OIL AND GAS IN THE FUTURE ENERGY MIX was held by Tomislav Dragičević, President of Croatian National Committee of the World Petroleum Council. Shares of oil and coal in the total energy mix decrease, but the gas share increases. Projections of future energy developments show that by 2040 fossil fuels will still account for almost 75% of the total energy, gas taking the leading role. Speaking of the new energy strategy Mr Dragičević pointed out huge challenges of the 21st century and our responsibility for the planet we are to leave to our children. Paris Agreement is a turning point and a foundation for other binding documents that will follow. The role of any government is to pursue a proactive policy and come up with the best energy mix. The solution is a single climate and energy strategy which will harmonise energy needs, energy generation and measures for climate preservation.

HOW TO UNLOCK HIDDEN HYDROCARBON POTENTIALS OF THE ADRIATIC AND IONIAN REGION is the title of a lecture given by Lilit Cota, INA Exploration Director. As regards the question to what extent new licensing rounds in the Adriatic and Ionian Region will prompt new exploration cycle, Cota mentioned Croatia, Montenegro, Italy, Albania and Greece. These countries have different oil policies, legislation, administrative frameworks and fiscal regimes. Of 28 offshore blocks Croatia has awarded 10. At the same time Albania awarded 4 exploration blocks, and Montenegro six out of 13 blocks offered in the licensing round in the period 2013-2016. As regards Italy, since 2013 it has had a moratorium on offshore exploration in the area up to 12 nautical miles from the coast. At the same time in April 2016 the referendum aiming to ban offshore oil and gas operations in the immediate coastal zone has failed and activities in areas covered by concessions approved before 2013 can be resumed. In Greece, at the second licensing round opened in 2015 three bids were received. Final bid evaluation by the Greek Government is under way.

Daria Karasalihović Sedlar, Professor at the Faculty of Mining, Geology and Petroleum Engineering of the University of Zagreb held a lecture titled UNCONVENTIONAL HYDROCARBON PRODUCTION – ANALYSIS OF EUROPEAN PRACTICE AND CROATIAN POTENTIALS. She talked about unconventional gas production in the USA, current European projects, and countries with the largest estimated reserves, and she also mentioned the prohibition of hydraulic fracturing, unconventional reservoirs in Croatia, regulatory framework, new experiences in unconventional hydrocarbon production and other things.

Slobodan Kolbah and Mladen Škrlec from Geotermalna Energija d.o.o. prepared a lecture titled QUANTIFICATION OF INDICATED GEOTHERMAL POWER POTENTIAL OF CROATIA. In their presentation these two authors emphasized the existence and the importance of geothermal water resources in Croatia for electricity generation and direct use of heat. Using conservative approach to quantification of Croatian potentials it is possible to come up with 100 MWe of installed power capacity which represents one third of the Krško nuclear power plant capacity, and the rest is heating at the level of one third of annual consumption of natural gas.

TURKISH EXPERIENCE IN USING GEOTHERMAL SOURCES FOR ELECTRICITY GENERATION was the topic of the presentation held by Dragutin Domitrović. Turkey is ranked seventh among ten countries which use geothermal sources for electricity generation. Geothermal energy potentials of this country are really immense, consisting of 21 geothermal fields with energy potential of 750 MWe. Positive and huge experience of this country can certainly also be useful to Croatia.

Following these interesting presentations Chief Secretary presented the proposal of HUNIG work plan and financial plan for the next year, which were approved in October by HUNIG Presidency. In short, HUNIG plans holding 3-4 round tables and lectures and organising 9th International Oil & Gas Conference and Exhibition (Solaris, Šibenik, October 2017). HUNIG will be actively involved in the development of the Energy Strategy of Croatia. The publishing activity would include four issues of the Oil & Gas Journal. Successful cooperation will continue with the Scientific Council for Crude Oil & Gas of HAZU, Croatian Engineering Association, Croatian Hydrocarbon Agency, the relevant Ministry, companies, faculties, institutions and related associations. Also, HUNIG continues with ongoing IT and marketing projects. For implementation of said program revenue of HRK 1.272 million is planned, with expenses amounting to HRK 1.108 million. The work plan and the financial plan were unanimously accepted.

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