Chevron is close to starting exploration for shale gas in Romania, two more permits needed

American oil and gas company Chevron currently needs two more permits to start exploratory drilling for shale gas in Barlad, Romania. The exploration work uses only conventional methods and not the controversial hydraulic fracturing, used to extract shale gas. “The moment when we’ll start work depends on the way state authorities act. We can’t start work without having two permits - environmental and water. These are the two major permits we need,” said Thomas Holst, country manager Che­vron Romania Exploration and Production, quoted by Zf.ro. Also, the company assures that if the extraction of shale gas begins, the gas produced will be sold locally and not exported. According to an announcement of the company made earlier this year, Chevron plans to start exploratory drilling for shale gas in Barlad - near the Moldovan border in Eastern Romania, in the second half of the year. In Romania, Chevron owns rights to exploration and exploitation of gas in Barlad and three areas in Constanta county – Vama Veche, Adamclisi and Costinesti - for which Chevron received concession agreements in March 2012. According to the company, the three onshore blocks cover some 2,700 sq km. US energy company Chevron has been in negotiations over shale gas exploration in Romania for well over a year. The Social Liberal Union put all shale gas projects on hold last year when the party took power. Since then, EU environmental studies on the impact of shale gas exploration have been published and the Romanian government has allowed projects to continue. Irina Popescu, irina.popescu@romania-insider.com