Energy, EU – Baltic States, Gas, Investments, Legislation, Lithuania

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 20:22

Lithuanian PM: Chevron withdrawal will not effect shale gas exploration

BC, Vilnius, 10.07.2014.Print version
Prime Minister of Lithuania Algirdas Butkevicius says that American energy company Chevron exit from Lithuanian market will have no impact on the plans to explore for shale gas, informs LETA/ELTA.

"This does not affect our plans. The Ministry of Environment has been obligated to announce another tender to carry out exploration work in the autumn. Draft laws have also been prepared which were approved at the meeting of the Strategic Committee. We hope that all draft laws related to exploration and further activity will be adopted in Parliament before the call for proposals," Butkevicius told the media on Wednesday.

 

"I see no problems for separate companies to participate in a tender," the prime minister noted.

 

Leader of the Seimas Opposition, Andrius Kubilius, regrets that American company Chevron could no longer stand Government's inaction and announced about its full withdrawal from Lithuania. The company's partners in Lithuania called the Government's, which is led by Algirdas Butkevicius, actions "a smack to the face".

 

According to them, even though the Government promised to quickly regulate legal framework for shale gas exploration and extraction, nothing was done in a year.

 

Kubilius says the latest Government's failure reflects personal working style of Algirdas Butkevicius. "Having met with representatives of Chevron he promised to settle things swiftly. However, once he felt pressure from interest groups or politicians he let things flow on their own. There is no political will to find solutions – only talks, promises, avoidance of responsibility and attempts to put blame for personal inaction on others," the leader of the Opposition stated.

 

Kubilius is concerned mostly that departure of the energy giant may impact selection of other potential investors. "We lost not only a quarter of billion of revenue in the budget but also an opportunity to increase the lowest pensions; we lost some investor interest and future revenue for the state. Who would like to invest in a country whose Government does not keep its word and alters the agreed conditions. Such actions can very easily form a negative image and scare off investors. It will require much time and consistent work in order to convince investors and restore the lost confidence," Kubilius said.

 

Member of the European Parliament Valentinas Mazuronis says that withdrawal of the US energy company Chevron and the story of shale gas exploration is a litmus test showing the country's ability to accept innovation, ability to filter information, find and implement the future vision.

 

"It must be told plainly – all of us lost this round, some due to misunderstanding or belief that they protect Lithuania's nature and people's health, others due to greediness expecting to get rich fast. Perhaps some people were tempted by forces pursuing their own interests and plans which have nothing in common with Lithuania's well-being.

 

According to Mazuronis, instead of looking for ways to do business safely and preserve the environment, it is attempted to prove that nothing needs to be done. "If such major company as Chevron could not put up with the situation then what should small investors do when competitors invoke communities, state institutions or legal structures against any kind of initiative?" MEP asked rhetorically.

 

Mazuronis says that the present situation and trends must be changed but political and civic will are needed. Whereas, the situation when two or three busses full of people with banners and musical instruments can force not only mayors but also MPs and Government members to dance to their tune is simply wrong.

 

"Withdrawal of Chevron is not a tragedy. It is a loss which gives food for thought, to consider and come to conclusions hoping they will be directed towards the future. We should remember that we live in the 21st century, when it is especially hard to compete with neighbours. Only winning this competitive struggle we may have a chance to have better lives," Mazuronis said.

 

As reported, the US energy company Chevron announced that was withdrawing from Lithuania and closed its office in Vilnius.

 






Search site