Croatia has lagged the rest of Europe for O&G investment, but its reforms to the O&G code are attracting investment. Despite indifference in the past, we have a positive outlook due to the drive to attract investment.
May 21, 2021
Europe - East
South eastern Europe, bordering the Adriatic Sea, between Bosnia and Herzegovina and Slovenia.
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.
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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