January 17, 2012 [Reuters] - Russian state-owned oil group Zarubezhneft is set to invest 1 billion euros ($1.27 billion) over the next five years into energy projects in Croatia as part of its Balkan-wide expansion, its General Manager Nikolay Brunich said on Tuesday.
As part of its plans, Zarubezhneft is seeking to build an oil and gas pipeline stretching from Slavonski Brod in eastern Croatia to the Adriatic island of Krk where the Croatian state-run pipeline operator Janaf has oil storage capacities, he told a news conference to announce the plans.
The pipeline will also pass through the northern Bosnian town of Brod, where Zarubezhneft operates an oil refinery, and the Croatian capital Zagreb. It is aimed at increasing exports of oil and derivatives both from Brod and Croatia’s Sisak refineries.
Brunich also said that Zarubezhneft was willing to invest into expansion of infrastructure capacities belonging to Croatia’s state-owned oil pipeline operator Janaf, which are now only partially used.
He said the company may join Janaf in a future exploration of oil and gas in continental Croatia. Zarubezhneft set aside 100 million euros for those activities.
Croatia’s previous government called a tender for concessions to explore oil and gas, but the new government that took office in December cancelled it. Chances are it will re-open it this year, as well as a concession for Adriatic seabed exploration.
“We are looking forward to a new tender for concession for exploration at nine locations,” Brunich told reporters.
Zarubezhneft has already expressed interest in taking over Austrian oil and gas group OMV AG’s petrol stations in Croatia and Bosnia as it moves away from refining and retail to focus on exploration and production.
OMV operates 63 retail units in Croatia and holds a 13 percent market share there, while in Bosnia it runs 13 units and has an 8 percent market share.
