MOSCOW (MRC) -- United States supermajor Chevron has given up on conventional and unconventional gas exploration in Lithuania, having closed its office in Vilnius and ceded its stake in the company holding the Rietavas licence to Sweden’s Tethys Oil, said Interfaxenergy.
"Chevron has closed its office in Vilnius. The company has divested its 50% equity interest in LL Investicijos," the company said in a statement. LLI acquired the Rietavas concession in 2007, with Chevron taking on a 50% stake in the local company for LTL 58 million (USD22.8 million) in 2012.
Chevron turned down the opportunity to develop the Silute-Taurage concession in Lithuania last October, despite winning the tender as the only bidder. It blamed an uncertain regulatory regime for the decision, and sources in Vilnius say little has changed.
Proposals last year for shale gas revenue taxation included provisions for a 40% rate – more than double the existing levy for conventional oil and gas production.
Chevron has been at the forefront of shale gas development across Central Europe and has encountered significant public protests. In addition to Lithuania, it has pursued projects in Poland, Romania and Bulgaria – with the company forced to abandon operations in the latter after Sofia decreed a moratorium in early 2012.
Meanwhile, Sweden’s Tethys Oil confirmed this week it had increased its stake in Rietavas from 14% to 30% following Chevron’s exit. It also holds stakes in two other projects, with production underway at the Gargzdai licence.
MRC