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The possible exploitation of shale gas requires new approvals

Being invited on Radio Romania Actualitati, Prime Minister Mihai Răzvan Ungureanu said that the project relating to the exploitation of shale gas is in early form, currently is only about "presumed deposits".

The possible exploitation of shale gas requires new approvals
Photo: The Romanian Prime Minister Mihai Razvan Ungureanu. Photo : Alexandru Dolea.

06 Aprilie 2012, 09:15

Romanian Prime Minister Mihai Razvan Ungureanu said on Radio Romania that currently the discussions about exploitation of shale gas are at the level of speculation.

According to the Prime Minister, the project is in an early stage.

"In the relationship with Chevron everything is in an early form. When will start the exploitation phase, then we will speak of unified procedures, including those of the environment," said Mihai Răzvan Ungureanu.

He insisted that in Monitorul Oficial, is an oil agreement with Chevron, not one of gas exploitation.

"All agreements are called petroleum, because gas can accompany or not oil resources."

"Only when it comes to exploitation environmental approvals is needed. Now we talk of presumed deposits." said the Premier.

The prime minister noted that oil agreements are classified by a law, The petroleum law from 2004.

"If willingness exists on both sides that the agreement being declassified, it can be declassified. If there is no willingness on both sides or one side it can not be declassified."

"The agreement is classified by The petroleum law and is declassified by the will of the parties", said Mihai Răzvan Ungureanu in an interview for Radio Romania.

The controversial method of exploitation of shale gas

Chevron recently announced that this year will run only exploration works with conventional technology in Vaslui and in Constanţa the only activity planned for 2012 would aim, according to the company, a study of physics of earth, after which the american group will decide whether to force a standard exploration or not.

Chevron announcement comes after the government approved the concession agreements for petroleum exploration, development and exploitation american company for the perimeters Vama Veche, Adamclisi and Costineşti, the opinion being issued after a meeting of the Prime Minister with the american group.

Shale gas exploitation is achieved through a controversial approach in some European countries, including France, the method being prohibited by law.

In the U.S. the extraction method is widespread, shale gas covering almost a quarter of gas usage.

Those who criticize the extraction technology say that the there is the risk of earthquakes and groundwater can be polluted.

Another weakness of the method of extraction would be, according to environmentalists, consumption of large quantities of water.

In Romania were protests against the exploitation of shale gas in Bucharest and in Barlad, a city located in one of the areas targeted for gas exploration.

Cupru Min Company, "completely unprofitable"

Prime minister Mihai Răzvan Ungureanu told Radio Romania Actualitati that the privatization of Cupru Min was made "through an open, absolutely transparent", with license until 2019.

According to him the state has brought to market a company "completely unprofitable"that was profitless "even in the communist regime".

Mihai Răzvan Ungureanu said that Romania would not have had any ability or technology to such exploitation.

Another obstacle was, according to the Prime Minister, the budget deficit.

"Assuming that we have made a huge investment, we would have created a huge deficit, because the money for investment should have been taken from somewhere." said the premier.

Mihai Răzvan Ungureanu explained that currently exists only a privatization agreement, the business plan will be made ​​later.

Translated by Ioana Vioreanu
MTTLC, Bucharest University

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