Edvardas Pocius | The Lithuania Tribune
Chevron Global Energy has shown its interest in Lithuania’s energy resources and market by buying 50 percent of Lithuania-registered oil company LL Investicijos, which holds a license to prospect for oil and gas at the 2,400 square kilometre Rietavas field, business daily Verslo Žinios reported earlier today.
As the scale of the investment has not been disclosed yet, experts say that the American company could invest 0.5 billion Litas (EUR 145 million). Chevron has also an option to buy the remaining shares in the Lithuanian company.
According to the BNS, Chevron has confirmed planning to launch prospecting works in the near future. It is thought that the company’s key interest at the Rietavas field is shale gas.
As the Russian gas group Gazprom is the sole gas supplier in Lithuania, Chevron’s interest in Lithuania is very important news for the country as it can change the country’s energy market fundamentally and have only positive effect on gas prices.
According to the Forbes Global 2000 list of the world’s biggest companies, Chevron’s market capitalization is USD 218 billion and the company stands no. 12 in the general ranking, no. 7 comparing sales, no. 8 in the market value list, and no. 5 comparing profits.
In comparison, Gazprom’s market capitalization is USD 159 billion and the company stands no. 15, no. 33, no. 26 and no. 3 respectively.
According to the VŽ report, the first meetings between the Lithuanian officials and the representatives of Chevron were held last year and the both sides were interested in further cooperation. However, the most of the related information has been kept secretly until today.
In April 2012, a company called Chevron Exploration and Production Lithuania has been registered in Lithuania. The company carried out some shale gas exploration. The further Chevron’s investments in the country show the increasing possibility of the company’s success.
It is believed that the shale gas deposit in Lithuania might be one of the most promising deposits in Europe as it lies at a depth of approximately 1 kilometre.
Andrius Kubilius has told the VŽ that it is very promising for the future of the country’s economy when such a company as Chevron is not afraid to come to the territory which is ruled by the monopoly of Gazprom.