Poland prepares quick-fix Chevron deal to help save failing shale gas industry

The Polish government has stated that oil major Chevron will be granted permission to drill deeper in search of shale gas this week, following rumors that the company would join the recent trend of other oil majors in abandoning shale gas exploration in Poland.

“On Tuesday Chevron will be granted permission for so-called deepening”, Deputy Environmental Minister, Piotr Wozniak said, June 10.

Previous cases have seen companies not being granted permission for continued drilling  after failing to find gas initially. The regulations were supposedly very rigorous and have been used as an example of the Polish government standing in the way of shale gas expansion. Chevron will allegedly be allowed to drill bellow 3,500 meters in Krasnik, south-eastern Poland, Puls Biznesu reported.

Wozniak argued that this particular case was simple, hence, it could be completed in a week, which provides a stark contrast to various other cases where an entire year-long environmental report was required.

Twenty-nine drilling applications, of which 10 are new entries, have reportedly been sent to the ministry. Meanwhile, the Polish government has seen oil and gas players such as ExxonMobile, Talisman Energy and Marathon Oil leave the industry.

Talisman and Marathon Oil pulled out during the first week of May.