EN Official Journal of the European Union C 163/64

Notice from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

(2018/C 163/06)

PUBLIC INVITATION TO BID FOR A CONCESSION FOR THE PROSPECTION AND EXPLORATION OF OIL AND NATURAL GAS DEPOSITS AND THE EXTRACTION OF OIL AND NATURAL GAS IN THE ‘DAMNICA’ AREA

SECTION I: LEGAL BASIS

1. Article 49h(2) of the Geological and Mining Act (Dziennik Ustaw (Journal of Laws) 2017, item 2126)

2. Cabinet Regulation of 28 July 2015 on bidding for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171)

3. Directive 94/22/EC of the European Parliament and of the Council of 30 May 1994 on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons (OJ L 164, 30.6.1994, p. 3; Special edition in Polish: Chapter 6, Volume 2, p. 262)

SECTION II: ENTITY INVITING BIDS

Name: Ministry of the Environment

Postal address: ul. Wawelska 52/54, 00-922 Warsaw, Poland.

Tel. +48 223692449, +48 223692447; Fax +48 223692460

Website: www.mos.gov.pl

SECTION III: SUBJECT OF THE PROCEDURE

(1) Type of activities for which the concession is to be granted

Concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Damnica’ area, parts of concession blocks Nos 7, 8, 27, 28, 47 and 48.

(2) Area within which the activities are to be conducted

The boundaries of the area covered by this bidding procedure are defined by lines joining points with the following coordinates in the PL-1992 coordinate system:

Point No X [PL-1992] Y [PL-1992] 1 768 487,609 409 502,868 2 736 256,303 408 926,764 3 737 349,025 370 473,148 4 754 461,086 370 959,415 to point No 1 along the Baltic Sea coastline

The surface area of the vertical projection of the area covered by this bidding procedure is 1 039,29 km2.

The area covered by the bidding procedure is located in Pomorskie Province in the following:

— municipalities: Ustka, Smołdzino, Główczyce, Damnica, Potęgowo, Słupsk, Nowa Wieś Lęborska, Wicko,

— towns: Łeba, Słupsk.

The aim of the works to be carried out in Cambrian, Ordovician and Silurian formations is to document and extract oil and natural gas in the area described above.

(3) Time limit, not less than 90 days from the date of publication of the notice, and place for the submission of bids

Bids must be submitted to the headquarters of the Ministry of the Environment no later than 16.00 CET/CEST on the last day of the 91-day period commencing on the day following the date of publication of the notice in the Official Journal of the European Union.

(4) Detailed bid specifications, including the bid evaluation criteria and a specification of their weighting, ensuring that the conditions referred to in Article 49k of the Geological and Mining Act of 9 June 2011 are fulfilled

Bids may be submitted by entities in respect of which a decision has been issued confirming the positive outcome of a qualification procedure, as provided for in Article 49a(16)(2) of the Geological and Mining Act, independently, or as the operator if several entities are applying jointly for the concession.

Bids received will be evaluated by the bid evaluation committee on the basis of the following criteria:

30 % — financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing; 25 % — technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential; 20 % — scope and schedule of the geological works, including geological operations, or mining operations proposed; 10 % — experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection; 10 % — the proposed technology for conducting geological works, including geological operations, or mining operations, using innovative elements developed for this project; 5 % — scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores.

If, following the evaluation of bids on the basis of the criteria specified above, two or more bids obtain the same score, the amount of the fee for the establishment of mining usufruct rights due during the prospection and exploration phase will be used as an additional criterion allowing a final choice to be made between the bids concerned.

(5) Minimum scope of geological information

Concession data Name of area: Damnica Location: onshore; concession blocks 7, 8, 27, 28, 47 and 48 Type of deposit Conventional and unconventional oil and natural gas deposits Structural levels Lower Paleozoic (Caledonian), Upper Paleozoic (Variscan), Permian-Mesozoic Petroleum systems II — unconventional petroleum system associated with the Lower Paleozoic rock complex (Upper and Middle Cambrian, Ordovician, Silurian) I — conventional petroleum system associated with the Middle Cambrian sandstone complex Source rocks I, II — Lower Cambrian, Ordovician and Silurian claystones and mudstones Reservoir rocks II — Lower Cambrian, Ordovician and Silurian claystones and mudstones I — Middle Cambrian sandstones Seal rocks I, II — Zechstein evaporitic formations; Lower Cambrian, Ludlow and Pridoli (Silurian) (secondary seal cluster) Thickness of overburden approx. 3 000 m Trap type II — unconventional traps I — conventional stratigraphic and tectonic traps Deposits identified in the vicinity (NG — natural gas; OI — oil) ‘Żarnowiec’ (OI); discovered in 1972; cumulative production: (44 years) 9 721 tonnes condensate; 26 930 000 m3 associated gas; in 2015: production 110 tonnes condensate, 70 000 m3 associated gas; reserves and resources 42 330 tonnes (industrial 1 680 tonnes); 6 960 000 m3 (industrial 1 390 000 m3) ‘Żarnowiec W’ (OI); discovered in 1990; cumulative production: (21 years) 4 200 tonnes condensate; 25 650 000 m3 associated gas; in 2015: production 110 tonnes condensate, 70 000 m3 associated gas; reserves and resources 17 810 tonnes (industrial 3 850 tonnes); 2 350 000 m3 (industrial 1 500 000 m3) ‘Dębki’ (OI); discovered in 1978, cumulative production (44 years) 36 169 tonnes oil, 10 201 000 m3 associated gas; in 2015 production 610 tonnes oil, 220 000 m3 associated gas; reserves and resources 8 620 tonnes (industrial 5 190 tonnes); 3 000 000 m3 (industrial 4 230 000 m3) ‘Białogóra–E’ (OI); discovered in 1991, cumulative production (16 years) 2 917 tonnes oil, 2 418 500 m3 associated gas; production in 2015: none; off-balance reserves and resources 1 430 tonnes (industrial 380 tonnes); off-balance 860 000 m3 (industrial 1 020 000 m3) Seismic surveys completed (rightholder) 1959 Ustka — Kołobrzeg (Treasury) 1960 Ustka — Łeba (Treasury) 1968 Darłowo-Słupsk-Łeba (Treasury) 1971 Darłowo — Wejherowo (Treasury) 1972 Ustka — Łeba, Żarnowiec — Władysławowo (Treasury) 1987 Kostrzyn — Lębork (Treasury) 2011 Damnica 3D (Treasury) 2012 PL1-5600 Implemented within the framework of the PolandSPAN project Benchmark wells (TVD) Lębork IG 1 (3 310,0 m) Łeba 8 (3 340,0 m)

(6) Commencement date of activities

The activities covered by the concession will commence within 14 days from the date on which the decision granting the concession becomes final.

(7) Conditions for granting the concession, in particular concerning the amount, scope and manner of providing the security referred to in Article 49x(1) of the Geological and Mining Act and, where justified, the amount, scope and manner of providing the security referred to in Article 49x(2) of that Act

The successful bidder is required to provide a security covering non-compliance or inadequate compliance with the conditions laid down in the concession and for financing the closure of mine workings if the concession expires, is withdrawn or becomes invalid. This security is to be provided for the period from the date on which the concession is granted until the end of the prospection and exploration phase. The amount of the security is PLN 100 000. The form and date of its payment are governed by Article 49x(4) and (5) of the Geological and Mining Act.

(8) Minimum scope of geological works, including geological operations, or mining operations

The minimum programme of geological works proposed for the prospection and exploration phase comprises:

Stage I duration: 12 months scope: interpreting and analysing archival geological data

Stage II duration: 12 months scope: geophysical surveys — 2D seismic test (excitation line 80 km in length) or 3D seismic test (excitation area 100 km2)

Stage III duration: 24 months scope: drilling one borehole to a maximum depth of 5 000 m, with mandatory coring of prospective intervals

Stage IV duration: 12 months scope: analysing the data obtained.

(9) Period for which the concession is to be granted

The concession period is 10 years, including:

— a prospection and exploration phase of five years' duration, starting from the date on which the concession is granted,

— an extraction phase of five years' duration, starting from the date on which an investment decision is obtained.

(10) Specific conditions for carrying out the activities and for ensuring public safety, public health, environmental protection and rational management of deposits

Implementation of the concession work programme must not infringe landowners' rights and does not eliminate the need to comply with other requirements laid down in legislation, in particular the Geological and Mining Act, and requirements regarding spatial planning, environmental protection, agricultural land and forests, nature, waters and waste.

(11) Model agreement on the establishment of mining usufruct rights

The model agreement is attached as an annex hereto.

(12) Information concerning the amount of the fee for establishing mining usufruct rights

The minimum amount of the fee for establishing mining usufruct rights for the ‘Damnica’ area during the five-year base period is PLN 224 632,14 (in words: two hundred and twenty-four thousand, six hundred and thirty-two zlotys, fourteen grosz) per annum. The annual fee for establishing mining usufruct rights for the purpose of the prospection and exploration of minerals is indexed to average annual consumer price indices set cumulatively for the period from the conclusion of the agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Monitor Polski (Official Gazette) (Article 49h(3)(12) of the Geological and Mining Act).

(13) Information concerning requirements to be met by bids and documents required from bidders

1. Bids should specify: (1) the name (business name) and the registered office of the bidder; (2) the subject of the bid, together with a description specifying the area within which the concession is to be granted and mining usufruct rights are to be established; (3) the period for which the concession is to be granted, the duration of the prospection and exploration phase and the commencement date of the activities; (4) the aim, scope and nature of geological works, including geological operations, or mining operations, and information about the works to be carried out to achieve the intended objective and the technologies to be used; (5) a schedule, broken down into years, for geological works, including geological operations, and the scope of such works; (6) the scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores, as referred to in Article 82(2)(2) of the Geological and Mining Act; (7) rights held by the bidder to the real property (area) within which the intended activities are to be carried out, or the right for the establishment of which that entity is applying; (8) a list of areas covered by nature conservation schemes; this requirement does not concern projects for which a decision on environmental conditions is required; (9) the way in which the adverse environmental impacts of the intended activities are to be counteracted; (10) the scope of the geological information available to the bidder; (11) experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection; (12) technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons and, in particular, the availability of appropriate technical, organisational, logistical and human resources potential; (13) financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing; (14) the proposed technology for conducting geological works, including geological operations, or mining operations; (15) the proposed amount of the fee for establishing mining usufruct rights, this being not less than the amount specified in the notice launching the bidding procedure; (16) the proposed form of providing security, as referred to in Article 49x(4) of the Geological and Mining Act; (17) if a bid is submitted jointly by several entities, it must additionally specify: (a) the names (business names) and the registered offices of all the entities submitting the bid; (b) the operator; (c) the percentage shares in the costs of geological works, including geological operations, proposed in the cooperation agreement.

2. Bids submitted in a bidding procedure should meet the requirements and conditions laid down in the notice launching that bidding procedure.

3. The following documents are to be enclosed with bids: (1) evidence of the existence of the circumstances described in the bid, in particular extracts from the relevant registers; (2) proof that a deposit has been lodged; (3) a copy of the decision confirming the positive outcome of a qualification procedure, as provided for in Article 49a(17) of the Geological and Mining Act; (4) graphical annexes prepared in accordance with the requirements relating to mining maps, indicating the country's administrative boundaries; (5) written undertakings to make technical resources available to the entity taking part in the bidding procedure if other entities' technical resources are used when implementing the concession; (6) two copies of the geological operations project file.

4. Bidders may, on their own initiative, provide additional information in their bids or attach additional documents thereto.

5. Documents submitted by bidders should be originals or certified true copies of originals as provided for in the Code of Administrative Procedure. This requirement does not apply to copies of documents which are to be attached to bids and were created by the concession authority.

6. Documents drawn up in a foreign language should be submitted together with a translation into Polish by a sworn translator.

7. Bids are to be submitted in a sealed envelope or a sealed package bearing the name (business name) of the bidder and indicating the subject of the bidding procedure.

8. Bids submitted after the expiry of the time limit for the submission of bids will be returned to the bidders unopened.

(14) Information concerning the manner of lodging a deposit, the amount of the deposit and the payment date

Bidders are required to lodge a deposit of PLN 1 000 (in words: one thousand zlotys) before the expiry of the time limit for the submission of bids.

SECTION IV: ADMINISTRATIVE INFORMATION

IV.1) Bid evaluation committee

A bid evaluation committee is appointed by the concession authority for the purpose of conducting the bidding procedure and selecting the most advantageous bid. The composition and rules of procedure of the committee are specified in the Cabinet Regulation of 28 July 2015 on bidding procedures for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and for concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171). The bid evaluation committee submits a report on the bidding procedure to the concession authority for approval. Together with bids and all documents related to the bidding procedure, the report is open to other entities submitting bids.

IV.2) Additional explanations

Within seven days from the date of publication of the notice, an interested entity may request the concession authority to provide explanations concerning the detailed bid specifications. Within seven days from the receipt of the request, the concession authority will publish the explanations in the Biuletyn Informacji Publicznej (Public Information Bulletin), on the page of the administrative office subordinate to that authority.

IV.3) Additional information

Full information about the area covered by the bidding procedure has been compiled by the Polish Geological Service in the Pakiet danych geologicznych (Geological Data Pack), which is available on the Ministry of the Environment website (www.mos.gov.pl) and from

Departament Geologii i Koncesji Geologicznych (Geology and Geological Concessions Department) Ministry of the Environment ul. Wawelska 52/54 00-922 Warszawa/Warsaw POLSKA/POLAND Tel. +48 223692449 Fax +48 223692460