ZAGREB, CROATIA - (August 19, 2003) The U.S. Trade and Development Agency (USTDA) awarded two feasibility study grants today totaling $710,000 to INA-Industrija Nafte d.d. Zagreb, a joint stock oil and gas company wholly owned by the Republic of Croatia. Both studies aim to improve the overall production capabilities of INA and to facilitate greater overall efficiency. These grants are further examples of USTDA's on-going commitment to assist Croatia in achieving more balanced and reliable energy supplies.

The Honorable Ralph Frank, U.S. Ambassador to Croatia, signed the grants on behalf of the U.S. Government. Mr. Tomislav Dragicevic, Chief Executive Officer of INA, signed on behalf of the Grantee.

The first USTDA grant, in the amount of $420,000, will evaluate the technical and economic feasibility of using carbon dioxide injections to enhance oil recovery at two of INA's oil fields, Ivanic and Zutica. Despite an aggressive drilling program, Croatia's oil production has declined since the mid-1980s. INA has used secondary oil recovery methods, such as water injections, for some time to increase production. The company is now considering using the tertiary recovery method of injecting carbon dioxide into depleted oil wells. This mechanism increases the miscibility of oil and can improve the economic viability of mostly depleted wells.

The second USTDA grant, totaling $290,000, will evaluate the feasibility of expanding INA's existing gas storage facility. Croatia currently experiences seasonal surpluses and shortages in its gas supply affecting INA's gas deliverability capacity. The USTDA-funded study will provide a solution to this problem by exploring possible large underground storage reservoirs to balance the differences between supply and consumption.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. USTDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.

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