Bulgaria grants Chevron shale gas exploration permit

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, June 16 -- Bulgaria granted Chevron Corp. a 5-year permit to explore for shale gas at what it called “a potentially huge field” in northeastern Bulgaria.

Bulgaria’s Economy and Energy Minister Traicho Traikov said Chevron will prepare a 5-year work program valued at €50 million after last month winning a tender for rights to a 4,400-sq-km block near the city of Novi Pazar.

Traikov said Chevron will pay €30 million to the state to begin exploring for shale gas in a field for which initial estimates showed the potential for 0.3-1 trillion cu m of shale gas.

Traikov has said shale gas and hydraulic fracturing have the potential to reduce harmful emissions, boost energy security, and cut Bulgaria's almost full reliance on gas imported from Russia.

The government said Chevron would invest €4 million over 5 years on environment protection after protests by opposition politicians.

Socialists last week called for a moratorium on shale gas exploration in Bulgaria until reliable studies prove the search will not harm the environment or trigger earthquakes.

Bulgaria is preparing two more tenders for shale gas exploration in the same region with offers to be submitted by the end of June.

Meanwhile, the Balkan country also hopes to link its gas transportation network with that of neighboring Greece in 2014, aiming to receive gas from Azerbaijan via an interconnector.

The award in Bulgaria follows an announcement by Chevron last month that it has agreed to acquire oil and gas assets, primarily 228,000 net leasehold acres, in the Marcellus shale from Chief Oil & Gas LLC and Tug Hill Inc. Terms of the transaction, expected to close by the end of June, weren’t disclosed.

Chevron Vice-Chairman George Kirkland said his firm has acquired nearly 5 million net acres of shale gas assets in the US, Canada, Poland, and Romania the past year.

The new US acreage, which is principally located in southern Pennsylvania, will give Chevron an estimated 5 tcf of additional gas resources in its Marcellus shale operations.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

Severance tax would backfire, Pennsylvania association leaders warn

12/17/2014 Enacting a severance tax aimed at Pennsylvania’s unconventional natural gas activity would substantially harm the commonwealth beyond the industry ...

New York state moves to ban hydraulic fracturing

12/17/2014 High-volume hydraulic fracturing will be banned in the state of New York, Gov. Andrew Cuomo’s administration announced Dec. 17, citing health risks...

EIA: US proved oil, gas reserves continue to climb

12/15/2014 US proved reserves of oil and natural gas have increased by 9% and 10%, respectively, according a recent report from the US Energy Information Admi...

US Forest Service takes no stance on fracturing in national forest

12/12/2014

The US Forest Service has dropped a proposal that would have banned hydraulic fracturing in the George Washington National Forest.

Southwestern makes $5.4 billion bet on Marcellus

12/12/2014 Southwestern Energy Co. is purchasing Appalachian assets from Chesapeake Energy Corp. in a deal that more than doubles its leasehold in the Marcell...

Study links methane contamination in water wells to poor well construction-not fracing-in Marcellus

12/12/2014 A new study found that fugitive gas contamination at eight clusters of water wells in the Marcellus and Barnett shale regions might be linked to we...

Watching Government: Did Maryland go too far?

12/08/2014 Maryland finally proposed a strategy to regulate unconventional natural gas exploration and production on Nov. 25. The question quickly moved from ...

US proved oil, gas reserves continue to climb

12/04/2014 US proved reserves of oil and natural gas have increased by 9% and 10%, respectively, according to the US Energy Information Administration. The 3....

Southwestern continues Marcellus expansion

12/03/2014 Southwestern Energy Co., Houston, has signed an agreement to purchase oil and gas assets, including 46,700 net acres, in northeast Pennsylvania fro...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected