Communication 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

(2019/C 105/03)

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 ‘Leszno’ area

SECTION I: LEGAL BASIS

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

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

fax: +48 223692460

Website: www.gov.pl/web/srodowisko

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 ‘Leszno’ area, parts of concession blocks Nos 225, 226, 245 and 246.

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] 1 466 689,56 337 158,51 2 466 644,39 337 595,47 3 467 081,59 338 410,26 4 466 285,50 338 174,75 5 466 127,50 337 330,79 6 465 569,17 337 388,84 7 465 510,41 338 244,91 8 464 695,80 338 580,80 9 464 592,68 338 901,65 10 465 144,25 340 978,73 11 464 295,40 342 400,98 12 464 475,27 342 578,28 13 465 608,94 342 132,35 14 461 815,48 351 708,88 15 460 228,57 355 230,04 16 460 036,44 362 017,35 17 458 190,40 361 718,22 18 436 498,40 361 368,45 19 436 501,63 361 242,93 20 436 769,02 355 921,34 21 436 798,34 355 337,82 22 441 243,48 318 392,54 23 459 794,18 322 788,02 24 468 260,86 335 437,60 25 467 589,23 337 133,13 26 467 407,89 336 934,21

The surface area of the vertical projection of the area covered by this bidding procedure is 1 008,78 km2.

The area covered by the bidding procedure is located in the following

— municipalities: Lipno, Włoszakowice, Święciechowa, Krzemieniewo, Przemęt and Kościan,

— the urban/rural municipalities of Rydzyna, Osieczna, Gostyń, Krobia, Poniec, Śmigiel and Krzywiń and the town of Leszno in Wielkopolskie Province and

— the urban/rural municipality of Wschowa in Lubuskie Province.

The aim of the works to be carried out in Carboniferous and Permian 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 12:00 CET/CEST on the last day of the 121-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 Law 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)(1) of the Geological and Mining Law 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 (including 5 % for the scope of collaboration, with regard to the development and implementation of innovative solutions for the prospection, exploration and extraction of hydrocarbons, with scientific bodies conducting research into the geology of Poland, and of analytical tools, technologies and methods for prospecting hydrocarbon deposits which take account of the specificity of Polish geological conditions and which may be applied in those conditions); 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: Leszno location: onshore; concession blocks 225, 226, 245 and 246 Type of deposit conventional natural gas deposits Structural levels Carboniferous and Permian Petroleum systems I — Carboniferous and Rotliegend II — Main Dolomite Source rocks I — Carboniferous mudstones and claystones II — interlayers rich in organic matter in the Main Dolomite Reservoir rocks I — Carboniferous and Rotliegend sandstones, Zechstein limestones II — Zechstein limestones and Dolomites Seal rocks I, II — Zechstein evaporates Thickness of overburden I — 1 800 -2 400 m II — 1 500 -1 800 m Trap type Structural Deposits identified in the vicinity (NG — natural gas; O — oil) Żakowo (NG) — discovered in 1965; unexploited; reserves and resources: 2 150 000 000 m3 (industrial: none) Kąkolewo (NG) — discovered in 1970; unexploited; reserves and resources: 240 000 000 m3 (industrial: none) Brońsko (NG) — discovered in 2001; cumulative production (15 years): 8 702 450 000 m3; production in 2016: 782 100 000 m3; reserves and resources: 15 015 660 000 m3 (industrial: 13 615 730 000 m3) Kościan S (NG) – discovered in 1995; cumulative production (15 years): 6 939 890 000 m3; production in 2016: 362 150 000 m3; reserves and resources: 3 419 790 000 m3 (industrial: 1 842 790 000 m3) Seismic surveys completed (rightholder) 1975-1977 Kościan-Gostyń 2D (State Treasury) 1975-1976 Kościan-Śrem 2D (State Treasury) 1975 Regional profile 2D (State Treasury) 1975 Wschowa-Gostyń-Milicz 2D (State Treasury) 1976 Pre-Sudeten Monocline 2D (State Treasury) 1976-1979 Nowa Sól-Góra-Milicz 2D (State Treasury) 1980 Góra-Rawicz 2D (State Treasury) 1986-1988 Leszno-Rawicz 2D (State Treasury) 1988 Pogorzela-Krotoszyn 2D (State Treasury) 1988 Śrem-Gostyń 2D (State Treasury) 1989 Leszno-Rawicz 2D (PGNiG) 1989-1990 Nowy Tomyśl-Wolsztyn-Leszno 2D (PGNiG) 1989 Śrem-Gostyń 2D (PGNiG) 1990-1992 Sława-Leszno 2D (PGNiG) 1992 Kościan-Śrem 2D (PGNiG) 1996 Zbarzewo 3D (PGNiG) 1997-1999 Kościan-Krobia 2D (PGNiG) 1998 Kościan-Krzywin 3D (PGNiG) 1998-1999 Jaraczewo-Pogorzela 2D (PGNiG) 2012-2013 Frankowo+Tworzanice 3D (State Treasury) Benchmark wells (MD) Jezierzyce 1 (2 668,0 m), Święciechowa 1 (2 776,8 m), Święciechowa 2 (2 200,0 m), Żakowo 6 (2 216,0 m), Górka Duchowna 1 (2 443,0 m, FX Energy) offset wells: Dąbcze 2 (2 203,7 m), Śmiłowo 1 (2 130,0 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) 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:

— Phase I (12 months): analysing and interpreting archival geological data;

— Phase II (12 months): geophysical surveys — 2D seismic test (200 km excitation line) or 3D seismic test (100 km2 excitation area);

— Phase III (24 months): drilling one borehole to a maximum depth of 3 000 m, with mandatory coring of prospective intervals;

— Phase IV (12 months): analysing the geological data obtained.

8) Period for which the concession is to be granted

The concession period is 30 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 25 years' duration, starting from the date on which an investment decision is obtained.

9) 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 Law Act, and requirements regarding spatial planning, environmental protection, agricultural land and forests, nature, waters and waste.

10) Model agreement on the establishment of mining usufruct rights

The model agreement is attached as an annex hereto.

11) 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 ‘Leszno’ area during the five-year base period is PLN 220 872,38 (in words: two hundred and twenty thousand, eight hundred and seventy-two zlotys, thirty-eight 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 Law Act).

12) 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 defining 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 timetable, broken down into years, for geological works, including geological operations, and the scope of such works; 6) the scope and timetable 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 Law 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 combatted; 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, or 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, or 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 remuneration 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 Law 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 Law 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 a geological operations project.

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.

13) 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 14 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 14 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: