Croatia

Investment & Operational Criteria

Key Indicators

Risk Premia

6.000

%

Outlook

Uncertain

Rating

BB|3S|§

Ranking

39

Reserves (1P)

Total

mm boe

Oil

32

%

Summary

Croatia has lagged the rest of Europe for O&G investment, but its reforms to the O&G code are attracting investment. Ministerial indifference in the past, once appearing to melt away, is now showing signs of returning, or worsening. Consequently, we have a downgraded our outlook to Uncertain. Nevertheless, we believe that the improving reception in country is helping to warm industry to the country. Consequently, we have lowered our risk premia to 6.00%

Updated

June 18, 2024

Country Basics

Region

Europe - East

Reserves (1P)

Oil

mm bbl

Gas

bcf

Location

CroatiaCroatia

South eastern Europe, bordering the Adriatic Sea, between Bosnia and Herzegovina and Slovenia.

Outline

Tax Regime
Type

Multiple (PSC/Concession)

Tax Regime
Notes

The fiscal system is based on PSCs (offshore) and concessions (onshore). Croatia has a model PSC for both onshore and offshore blocks, prepared in time for the first international bidding round launched in 2014. Some provisions addressing the specifics of petroleum operations are still evolving.

Investment & 
Operational
Climate

The government is willing to meet at senior levels with interested investors and to assist in resolving problems. Prime Minister Andrej Plenkovic is a former member of the European Parliament and has signalled his commitment to wide-ranging structural reforms in line with recommendations from the EU and global financial institutions. His government is working with the World Bank and other international institutions to improve the ease of doing business in Croatia and to attract investment. Relative strengths in the Croatian economy include low inflation, a stable exchange rate, and developed infrastructure. Historically, O&G has not been a prominent sector for the country.

Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.

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Related Basins

Europe - East

Countries

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