Čipčić-Bragadin Mesić and Associates advises Nafta a.s. in relation to entering the Croatian hydrocarbons market.

It is the first such transaction since the Act on the exploration and production of hydrocarbons was enacted in 2015. and probably the only such transaction in the recent Croatian history.

 We are pleased to announce that, Čipčić-Bragadin Mesić & Associates, one of the leading Croatian law firms acted for a new client Nafta a.s. in relation to entering the vibrant Croatian hydrocarbons market.

Nafta a.s., a leading Slovakian oil and gas exploration and production company, following a yearlong negotiation agreed on commercial terms of the acquisition of 50 % of investor’s rights and obligations under the Production Sharing Agreement entered into between the investor, Vermilion Zagreb Exploration d.o.o. and the Government of the Republic of Croatia in 2016 .

As a part of the deal, the parties also agreed the commercial terms of the Joint Operation Agreement. The assignment of Vermilion’s rights and obligations under the Production Sharing Agreement is conditioned to obtaining an approval of the Government of the Republic of Croatia on the envisaged transfer.

This transaction is the first of its kind to since the Act on the Exploration and Production of Hydrocarbons was enacted back in 2015 and probably the only such transaction in recent Croatian history.

Counselling included advising, among other things, on all relevant aspects of entering the Croatian hydrocarbons market, drafting Participation Agreement and Joint Operation Agreement, corporate, commercial and regulatory due diligence, due diligence of ongoing court cases in relation to relevant exploration blocks, new company formation for the exploration and production of hydrocarbons, , representing the client in front of the Ministries and public bodies etc.

Čipčić-Bragadin Mesić & Associates (Silvije Čipčić-Bragadin, Marina Mesić and Igor Šabić) acted as a lead Croatian counsel to Nafta a.s. together with team law firms Marohnić, Tomek & Gjoić (Josip Marohnić) and Željka Velić-Dvoršćak & Silvije Skerlev ( Željka Velić-Dvoršćak).

Nozdrovicky, Suvert & Co.(Peter Suvert) acted as a Slovakian counsel to Nafta and Wolf Theis Zagreb (Saša Jovičić) advised Vermilion.

Silvije Čipčić‑Bragadin, who led the Croatian team for Nafta commented:

„ We are proud to be able to attract the client like Nafta and provide them with a “one stop shop service” in this amazing and complicated deal. Negotiations between the parties lasted for more than 12 months and there were many hurdles to overcome and resolve. It was a new experience for all of us involved since this was the first such transaction under the rules of Act on the Exploration and Production of Hydrocarbons. What complicated the matter even more was the fact that there are several active litigations against the Republic of Croatia in relation to the revocation of licences of the previous licence holder. I wish to express my sincere gratitude to all my colleagues who participated in this interesting transaction for the great effort and service, and of course to Nafta for being such a supportive and interesting client.”