The Croatian Parliament has concluded its debate on the final bill on exploration and exploitation of energy georesources. On 24 September, the Government also adopted an amendment to the final bill. The parliamentary vote is still pending, so the enacted text, its publication in the Official Gazette and the prescribed date of entry into force will determine the applicable rules.

Energy georesources include oil and natural gas, geothermal water used for energy, underground storage of natural gas and hydrogen, and geological formations for storing carbon dioxide and other energy fluids. The proposal replaces several separate regimes with a single legal framework for exploration, exploitation and storage.

Investors should note the more flexible options for awarding rights and developing projects, including specified cases in which a project may continue without a new tender. The bill also provides for innovative and pilot projects, simpler administrative procedures and a more active state role in projects of strategic and public interest. Each project will still have to be assessed together with spatial-planning, environmental-protection and construction rules, and the property-rights conditions at the specific location.

The final bill also strengthens responsibility for closing a project. The investor remains primarily responsible for remediation, supported by security arrangements for performing those obligations. A mandatory National Plan for the remediation of inactive wells and petroleum-mining facilities is envisaged, while the state could exceptionally undertake remediation to protect people, property, the environment, security of supply or other national interests.