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Chevron says it dropped Lithuanian shale gas bid due to fiscal, legislative, regulatory changes

„Chevron“
„Reuters“/„Scanpix“ nuotr. / „Chevron“
Šaltinis: BNS
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US energy company Chevron says that it is withdrawing its bid for a shale gas exploration license in Lithuania due to fiscal, legislative, and regulatory changes in the country.

"Significant changes to the fiscal, legislative and regulatory climate in Lithuania have substantially impacted the operational and commercial basis of the investment decision since the company submitted its bid in January 2013," Chevron said in a statement on Tuesday evening.

"Because of the changing regulatory and legislative landscape, Chevron believes that its business interests in Lithuania are best served focusing on our existing investment in the Rietavas block," it said.

Following more than half a year of discussions among politicians, scientists, and local communities, the Environment Ministry in mid-September recommended that the government name Chevron, the sole bidder, the winner of the tender for shale gas exploration in the Šilutė-Tauragė field.

The Seimas (parliament) in late May passed legislative amendments setting the regulatory framework for shale gas exploration and extraction in the country.

Some lawmakers also propose to levy a 40-percent tax on shale gas and to apply a uniform basic 25 percent rate on crude oil and gas.

In June, Chevron launched oil exploration in the village of Stemplės, in the western Lithuanian district of Šilutė, through LL Investicijos, a local oil company in which the US energy giant holds a 50-percent stake.

BNS
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