EN Official Journal of the European Union C 163/1

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 163/01)

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 ‘BOCHNIA’ 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 ‘Bochnia’ area, parts of concession blocks Nos 393, 412 and 413.

(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] 1 234 844,361 560 392,571 2 236 207,601 566 125,529 3 236 033,680 566 047,350 4 235 039,210 566 833,730 5 234 435,410 567 891,740 6 234 919,040 569 098,080 7 236 899,729 569 036,197 8 237 511,440 571 608,680 9 238 239,180 593 185,130 10 235 643,890 601 614,750 11 232 987,600 601 605,370 12 232 886,196 599 665,936 13 234 314,529 599 626,240 14 234 138,401 593 300,605 15 232 471,033 593 346,944 16 231 635,971 587 283,158 17 231 660,823 587 179,604 18 231 619,154 587 161,046 19 231 446,800 585 909,500 20 231 067,402 576 041,636 21 231 535,859 574 373,847 22 231 062,273 574 226,570 23 230 992,755 574 100,127 24 230 896,960 571 608,570 25 230 642,809 560 453,662

Excluding an area, the boundaries of which are defined by the following coordinates:

Point No X [PL-1992] Y [PL-1992] 26 236 852,989 574 680,836 27 236 886,191 575 398,936 28 235 707,297 575 415,667 29 235 696,650 574 665,742 30 236 756,068 574 650,707

The surface area of the vertical projection of the area covered by this bidding procedure is 218,90 km2.

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

— municipalities: Mogilany, Kłaj, Biskupice, Gdów, Bochnia,

— towns and municipalities: Skawina, Świątniki Górne, Wieliczka, Niepołomice,

— towns: Bochnia, Kraków.

The aim of the works to be carried out in Cambrian, Devonian, Permian, Triassic, Jurassic, Cretaceous, Palaeogene and autochthonous Miocene 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: Bochnia location: onshore; concession blocks 393, 412 and 413 Type of deposit conventional oil and natural gas deposits Structural levels Carpathian orogen, West European platform Petroleum systems I – Paleozoic-Mesozoic bedrock petroleum system II – petroleum system developed in the Carpathian nappes; III – Carpathian Foredeep autochthonous Miocene petroleum system; Source rocks I – Lower Carboniferous carbonate and clastic rocks, Lower Carboniferous clastic rocks (Productive Carboniferous in paralic and limnic series), (?) Middle Jurassic claystones and mudstones; II – Lower Cretaceous Cieszyn, Wierzowice, Grodzisk and Lgota shales, Oligocene menilite shales; III – Carpathian and Lower Badenian fine-grained clastic rocks Reservoir rocks I — Cambrian sandstones; Lower Devonian limestones and Dolomites; Upper Devonian and Lower Carboniferous limestones and Dolomites; Upper Jurassic limestones; II – flysch of Silesian Nappe: Grodzisk, Wierzowice, Lgota and Istebna strata, Ciężkowickie and Menilite sandstones, Krosno strata, flysch of Subsilesian Nappe: Wierzowice and Lgota strata III – Carpathian Foredeep autochthonous Miocene clastics (Badenian and Sarmatian) Seal rocks I, III – evaporites which seal traps in the Paleozoic-Mesozoic bedrock system, fine-grained Carpathian Foredeep autochthonous Miocene formations II – fine-grained flysch formations which isolate hydrocarbons present in Carpathian Foredeep Miocene rocks and coarse-grained horizons within the flysch succession Thickness of overburden I – autochthonous Miocene claystones, Badenian evaporites and local rocks of the Carpathian flysch (Silesian and Subsilesian nappes): 500-1 000 m II – impermeable fine-grained flysch formations: 0-100 m III – argilaceous intra-Miocene lithosomes, flysch of Subsilesian and Silesian nappes: 100-500 m Trap type I – structural, stratigraphic II – structural or structural-lithological, lithological III – compaction, structural anticlines Deposits identified in the vicinity (NG — natural gas; OI — oil) Grabina – Nieznanowice (NG), discovered in 1972; cumulative production (37 years) 161 250 000 m3; balance sheet reserves and resources: 328 000 000 m3, production in 2015: 1 960 000 m3, industrial resources: 12 960 000 m3; non-industrial: 431 770 000 m3. Grabina – Nieznanowice S (NG), discovered in 1987; cumulative production (22 years) 17 250 000 m3; balance sheet reserves and resources: 205 740 000 m3, production in 2015: 1 960 000 m3, industrial resources: 110 540 000 m3; non-industrial: 95 200 000 m3. Łapanów (NG), discovered in 2008, cumulative production (2 years) 18 004 000 m3; in 2015: production 17 920 000 m3; reserves and resources (industrial: 307 280 000 m3). Łąkta (NG, OI) – discovered in 1971, cumulative production: gas from gas horizons (40 years) 96 150 000 m3, gas from condensate horizons (28 years) 721 380 000 m3, condensate (30 years) 50 540 tonnes; in 2015: production — gas 3 020 000 m3, oil — none, reserves and resources — gas 211 720 000 m3, condensate 4 580 tonnes. Raciborsko (NG), discovered in 1978; cumulative production (37 years) 25 750 000 m3; production in 2015: 220 000 m3, balance sheet reserves and resources: 431 650 000 m3; industrial resources: 16 310 000 m3. Seismic surveys completed (rightholder) 1976 Brzesko-Pilzno-Olszyny Geofizyka Kraków Sp. z o.o., Kraków (Treasury) 1977 Bochnia-Czchów-Tarnów, Geofizyka Kraków Sp. z o.o., Kraków, (Treasury) 1978 Górnośląskie Zagłębie Węglowe, Przeds, Bad, Geofiz, Warsaw, (Treasury) 1978 Żywiec-Wadowice-Gdów, Geofizyka Kraków Sp. z o.o., Kraków, (Treasury) 1992 Dobczyce-Gdów-Wolica, Geofizyka Kraków Sp. z o.o., Kraków, (PGNiG, Warsaw) 1993 Liplas-Grobla-Żukowice, [Liplas-Grobla], Geofizyka Kraków Sp. z o.o., Kraków, (PGNiG, Warsaw) 1993 Liplas-Puszcza, [Liplas-Grobla-Żukowice], Geofizyka Kraków Sp. z o.o., Kraków, (PGNiG, Warsaw) 1994 Lachowice-Myslenice, Geofizyka Kraków Sp. z o.o., Kraków, (PGNiG, Warsaw) 2003 Puszcza-Krzeczów-Borek, Geofizyka Kraków Sp. z o.o., Kraków, (PGNiG, Warsaw) 2004 Kamyk-Niepołomice, Geofizyka Kraków Sp. z o.o., Kraków, (PGNiG, Warsaw) 1987–1989 Niepołomice-Gdów-Myślenice, Geofizyka Kraków Sp. z o.o., Kraków, (Treasury) Benchmark wells (MD) Cichawa 8 1 (1 029 m) Cikowice 1 (1 465,5 m) Trąbki 1 (862 m) Mogilany 1 (2 500 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 50 km in length) or 3D seismic test (excitation area 50 km2)

Stage III duration: 24 months scope: drilling one borehole to a maximum depth of 4 500 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 ‘Bochnia’ area during the five-year base period is PLN 47 313,05 (in words: forty-seven thousand, three hundred and thirteen zlotys, five 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