1
Securing energy for the future development
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INA d.d.
Refineries:n Rijekan Sisak
Ptrol stations:n Croatia (401)n Slovenia (6)n BiH (65) n Serbia (193)
Oil and gas exploration and
production
Refining and wholesale Retail
Oil and gasproductionn Croatian Angolan Egyptn Syrian Albania
n Maintainence of equipment and storage facilities in crude processing
n Maintainence of refineries and processing plants
n Project organisation
Integratedoil services
Drilling and otherservicesn 3 off-shore
platforms:n Zagreb, Panon
and Labinn 11 on-shore
drilling units
Natural gas transportation
n 2000 km gas pipeline
n Transportation of imported and domestic naturalgas to industrial consumers and municipal gas distributors
LPG
n Sale of LPG
Technical maintainence
servicesLubricants
n Industrial lubricants
n Special purposes oil
n Motor oil additives
n Metal processing liquids
Established in 1997. 2001. 2001. 2002. 2002.
Through a Government decision Plinacro d.o.o. was detached from INA Group
INA Group
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2
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• Accounts for over 10% of Croatian GDP (2002)
• Owns 100% of Croatia’s proven and probable hydrocarbon reserves
• Owns 100% of Croatia’s wholesale gas distribution infrastructure
• Owns 100% of Croatia’s existing refining capacity
• Controls 80% of downstream petroleum market by volume
• GDP (2002) 21 188 bn US$
• GDP per capita (2002) 5 000 US$
• Inflation rate (2002) 2,3 %
CROATIA
INA
INAINA’s Role in Croatian Economy ’s Role in Croatian Economy
1
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World Oil and Gas Demand/SupplyWorld Oil and Gas Demand/Supply
3
3
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Oil consumption and imports of oil and natural gas in EU
Source:BP statistical review of world energy June 2002
Former USSROil ⇒ 18 %N.Gas ⇒ 41 %
AlgeriaOil ⇒ 4 %N.Gas ⇒ 29 %
Middle EastOil ⇒ 31 %
L.AmericaOil ⇒ 4 %
NorwayOil ⇒ 21 %N.Gas ⇒ 25 %
OtherOil ⇒ 22 %N.Gas ⇒ 5 %
Source: “European Union Energy Outlook to 2020”, European
Commission, 1999
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0
500
1000
1500
2000
2500
3000
3500
4000
2002.
2003.
2004
.200
5.
2006
.200
7.200
8.200
9.201
0.201
1.
Import from Russia
Northern Adriatic
Pannonian Basin
Total demand
Projection of natural gas demand and supply (BCM) in Projection of natural gas demand and supply (BCM) in CroatiaCroatia
5
4
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INA’s Croatian upstream
Croatia
n INA is the only holder of onshoreand offshorelicences in Croatia
n INA shares interests in two blocks in offshore Adriatic with Agip which are operated by joint operating company (INAgip).
n INA signed an agreement with Edison Gas for the three blocks in the norhern Adriatic
n The two major prolific onshore areas in Croatia are the Drava and Sava Depression.
n Croatia’s main oil fields were found in the 1950s in the Sava Depression. The development of the SavaDepression resulted in Croatian oil production peaking in the early 1980s
n The Drava Depression is predominantly gas bearing and the main fields were discovered in the 1970s, allowing Croatian gas production to rise significantly during the 1970s and 1980s
Asset location
Ivana
Ivona
Izabela
IVANA
ITALY
0
Adriatic Sea
North Adriatic
Iva
Iskra
Iris
SLOVENIATrieste
LJUBLJANA
AUSTRIA
Rijeka
50Km
Aiza-Laura
Dinarides 2
SW Sava
Dinarides 3
Dinarides 1
100
Central Adriatic
CROATIA
Sava
NWCroatia
ZAGREB
SavaSisak
Dinarides 4
Split
Drava
Okola
Kalinovac
Molve
Dubrovnik
South Adriatic
PozegaDepression
SARAJEVO
BOSNIA-HERZEGOVINA
EastSlavonia
H U N G A R Y
SERBIA ANDMONTENEGRO
Danube
Sava
Production Licence - Oil
Exploration Licence
Production Licence - Gas
Gas FieldOil Refinery
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n Production from Ras Qattara and West Abu Gharadign Interests in North East desert and
North Bahirya
Egypt
n Potentially significant gas discovery under appraisaln Close to existing gas
infrastructure– INA has an access agreementn Syrian gas market expected to
grow supporting a rise in gas powered generation
Syria
nOil production from 2 licenses offshoren Participation in 2 wells deepwater
exploration programmes
Angola
n Exploration well to be drilled this year
Albania
INA’s international upstream
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5
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Oil production
0
0,5
1
1,5
2
2,5
3
2002. 2003. 2004. 2005. 2006. 2007.
year
mil.
ton
s
Croatia Angola Egypt Syria
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Onshore 48%
Offshore11%
Import41%
n Total Gas Supply = 2.62 bcm
n Customers
INA’s domestic gas supply and trading
n INA is sole supplier of gas to Croatia– INA production
– Imports from Gazprom
n Gas is sold at entry to the transmission system owned by Plinacro
n INA owns gas storage capacity
n Newly appointed regulator will set Croatian gas prices
n Tariffing change in 2H 2002– Expected 12-15% increase in revenues
Industrial15%
HEP24%
PetroKemija19%
Distribution42%
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6
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Gas grid
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IDA B
ME
DIA
N LIN
E
BARBARA T2
IDA A
ANNAMARIA B
IVANA A
EXISTING SEALINE
FUTURE SEALINE
A D R I A T I C S E A
GARIBALDI K
IKA A
IKA B
CASALBORSETTI
RAVENNA
FALCONARA
ANCONA
PULA
ANNAMARIA A
IDA C
MARICA
INA’s Croatian offshore – development plan
IVANA
A
D
B
C
E
K
11
7
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0
0,5
1
1,5
2
2,5
3
3,5
4
2002. 2003. 2004. 2005. 2006. 2007.year
bln
m3
Panon Jadran International
Gas production
12
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The energy sector in Croatia is regulated by a package of laws:
Energy law,
Law on electricity market,
Law on gas market,
Law on oil and derivatives marketLaw on regulation of energyactivities.
The legislative framework is harmonised with EU directives. The greatest part of the energy sector is organized in INA Company and in Hrvatska Elektroprivreda (Croatian Electricity Utility Company)
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