The Croatian Hydrocarbon Agency and Crosco have signed contracts for the engineering, procurement and turnkey construction of geothermal exploratory wells in Velika Gorica, Zaprešic, Osijek and Vinkovci on May 22nd 2024. The aim of this project is to confirm the geothermal potential that can be utilised for heating these towns.
Following a public tender procedure, contracts were signed at the premises of the Croatian Hydrocarbon Agency (CHA) with the service company CROSCO Integrated Drilling & Well Services Co, Ltd (Crosco), which will carry out geothermal drilling in Velika Gorica, Zaprešic, Osijek and Vinkovci for the Agency. The total value of the contracts amounts to 39.7 million euros.
“Crosco is a renowned domestic company with extensive experience in the field of drilling, both on land and at sea. This guarantees us the professional and safe construction of geothermal exploratory wells, and we at the Agency are particularly pleased to have such a partner for this extremely important and challenging project. This project plays a key role in the realisation of our main goal, which is the green transition of the Republic of Croatia, especially in the heating sector. At the same time, we hope that in the future we will have the opportunity to cooperate on other important projects that will contribute to the Agency’s main goal – energy self-sufficiency of the Republic of Croatia,” said Marijan Krpan, President of the Management Board of CHA, at the signing of the contract. Representing Crosco, the contracts were signed by Ferenc Tarr, the company’s Director: “The signing of this contract with the CHA confirms Crosco’s leading role in the country and the region in terms of services. In addition to drilling oil and gas wells, we are also active in the growing geothermal energy market. Our advantage is our extensive experience in carrying out various types of drilling both in Croatia and abroad. In every aspect of our work, from drilling to project management, we adhere to the principles of sustainability and environmental protection. This makes us a reliable partner for all investors interested in developing geothermal sources and providing services for traditional oil and gas production.”
Crosco will be supported by experts from INA and STSI – Integrated Technical Services, a member of the INA Group, in obtaining permits, planning, technical support and consulting, site preparation and equipment transport. “For 60 years, INA, together with its operating companies, has successfully supported the development of the Croatian energy industry, and today’s contract signing proves that INA can be relied on in the future as well. Our company has already embarked on the path of green change. We are implementing our own clean energy projects, such as the construction of solar power plants, the initiation of our own geothermal explorations and the development of projects for the production of green hydrogen and biomethane. We are pleased that we can use our experience and expertise to help others embark on the path of transformation,” stated Zsuzsanna Ortutay, President of the Management Board of INA.
Financial resources for the exploration and confirmation of geothermal potential have been approved for CHA under the National Recovery and Resilience Plan through the measure C1.2. R1-I2 “Promoting Energy Efficiency, Heating, heating and renewable energy sources for the decarbonisation of the energy sector.” 2D seismic and magnetotelluric measurements were carried out at six sites during 2023. After analysing the results, exploration will continue at four sites covered by the signed contracts. By drilling and testing wells, Crosco will determine the potential for the utilisation of geothermal water and the necessary parameters for the commissioning of the wells, primarily for heating. The start of the preparatory activities of the operations are expected by the end of 2024, while the drilling of first well is scheduled to begin by spring of the following year.