Bowing to public pressure, Bulgaria's government says US oil
company Chevron cannot explore for shale gas in the country
using the extraction technique known as "fracking."
Energy Minister Traicho Traikov said that under the decision
"Chevron can still have the right to test for oil and gas,
but without using the controversial technology of hydraulic
fracturing."
He says San Ramon, California-based Chevron had not yet been
notified of the decision and negotiations on the contract are
pending.
Over the last weeks, thousands of people gathered at protest
rallies across Bulgaria to protest against shale gas
extraction and the use of fracking, fearing it could have a
hazardous impact on the environment and people's health.
Last June, Bulgaria granted US oil company Chevron a permit
to explore for shale gas in the northeastern part of the
country. The potential reserves of shale gas in this area -
the country's main grain producing region - are estimated at
up to 1 trillion cubic meters.
Bulgaria, which is almost totally dependent on Russian gas
supplies, has long pushed for a way to diversify its energy
sources, including shale gas. It has said Chevron would
prepare a five-year project worth €50 million and invest €4
million on environment protection.
Traikov explained that it was not possible to drill for shale
gas with the permits already issued. He added that companies
were required to submit a working programme setting out the
method of extraction, which had to pass various environmental
impact assessments before it could be approved conclusively.
On Wednesday, Parliament is scheduled to vote a proposal on a
total ban on hydraulic fracturing in Bulgaria and its Black
Sea territorial waters. The draft was made by the ruling
centre-right GERB party and is expected to be approved with a
comfortable majority.
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