FT: Chevron’s Bulgaria pull-out a blow for energy security

European advocates of shale gas – and they do exist – have been hoping that the Ukraine crisis might galvanise governments into dropping objections to controversial fracking. But despite a growing and belated recognition that Europe must do more to diversify its energy sources, in Bulgaria at least the unpopular shale movement is going backwards.

Last month, US energy giant Chevron quietly closed its Sofia office, three years after it was awarded a licence for shale exploration that was scrapped months later. The company did not publicise its withdrawal and it has gone largely unreported. But the move is indicative both of the political challenges that frackers still face and of Bulgaria’s frustratingly inconsistent treatment of energy investors.

“Chevron can confirm it has closed its office in Sofia, Bulgaria and will not be pursing an exploration program in Bulgaria,” the company said in a statement to beyondbrics:

The ban on hydraulic fracturing imposed by the Bulgarian parliament in 2012 following Chevron’s successful bid for an exploration permit in northeast Bulgaria remains in place.  MORE