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 105/07)

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 ‘Wetlina’ 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 ‘Wetlina’ area, part of concession block No 477.

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] 1 158 815,50 739 398,07 2 159 474,24 754 616,81 3 141 287,73 755 460,15 between points 3 and 4, the boundary of the area covered by the bidding procedure follows the State border 4 146 816,39 739 917,45

The surface area of the vertical projection of the area covered by this bidding procedure is 220,93 km2.

The area covered by the bidding procedure is located in the following municipalities: Cisna, Baligród, Czarna and Lutowiska in Podkarpackie Province.

The aim of the works to be carried out in Cretaceous and Palaeogene formations is to document and extract oil and natural gas deposits 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: Wetlina location: onshore; concession block 477 Type of deposit conventional and unconventional oil and natural gas deposits Structural levels Carpathian (Dukla, Fore-Dukla and Silesian units) Petroleum systems I — Carpathian conventional II — Carpathian unconventional Source rocks I, II – Menilite beds, Cieszyn shales, Wierzowice and Spas beds, upper Istebna shales, unexplored substrate rock Reservoir rocks I, II — sandstones of Krosno and Menilite beds Seal rocks I, II — fine-grained formations of the Dukla, Fore-Dukla and Silesian units Thickness of overburden I, II — 250-1 800 m Trap type I — structural, stratigraphic, lithological II — unconventional tight Deposits identified in the vicinity (NG — natural gas; O — oil) Wetlina (NG) — deposits not exploited; off-balance reserves and resources in 2016: 73 million m3 natural gas Zatwarnica (O) — production in 2016: 110 tonnes oil and 10 000 m3 natural gas; balance-sheet reserves and resources in 2016: 1 370 tonnes oil and 200 000 m3 natural gas; industrial resources in 2016: 440 tonnes oil Seismic surveys completed (rightholder) 1976 — Bieszczady, W0050175 (State Treasury) Benchmark wells (MD) Wetlina IG-1 (3 079,0 m) Wetlina IG-2 (3 300,0 m) Wetlina IG-3 (2 049,5 m) Wetlina 4 (1 940,0 m) Wetlina 5 (3 008,0 m) Wetlina 6 (2 100,0 m) Wetlina 7 (3 458,0 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): interpreting and analysing archival geological data;

— Phase II (12 months): geophysical surveys — 2D seismic test (90 km excitation line) or 3D seismic test (45 km2 excitation area);

— Phase III (24 months): drilling one borehole to a maximum depth of 5 000 m, with mandatory coring of prospective intervals;

— Phase IV (12 months): analysing the 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 ‘Wetlina’ area during the five-year base period is PLN 48 372,62 (in words: forty-eight thousand, three hundred and seventy-two zlotys and sixty-two 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 Polish Official Gazette (Monitor Polski) (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 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 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 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 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 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.

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) Further clarifications

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 Public Information Bulletin (Biuletyn Informacji Publicznej), 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 Geological Data Pack (Pakiet danych geologicznych), which is available on the Ministry of the Environment website (www.gov.pl/web/srodowisko) and from: