Romanian Government Pledges Immediate Moratorium on Shale

Romania's new government has said it is planning an immediate moratorium on the exploration of shale gas. 

The government, headed by newly designated Prime Minister Victor Ponta, is expected to enact the moratorium on Monday with the backing of the cabinet.

Reuters reports that a government document seen by the news agency promises to implement "the immediate institution of a moratorium on shale gas exploration until the finalising of studies which are currently being undertaken at the European level."

Earlier this month, Romania's President, Traian Basescu has spoken favourably about shale gas and the opportunities that the unconventional gas held for the country.

If the moratorium goes ahead, it could mean further frustrations for American major Chevron, which has so far been thwarted in its shale exploration efforts in neighbouring Bulgaria due to a moratorium in effect there.

Last month, the company announced that it was suspending its shale exploration in Romania following protest actions from residents near its shale sites.

"Many governments, including the one of Romania, have expressed their interest in the exploitation of gas from shale, as long as this process can be conducted safely and responsibly," country manager for Romaina Tom Holst said at the time.  

"Chevron is ready to assist Romania in uncovering new energy sources, with a significant potential at national level. In Vaslui county, Chevron is in the process of initial permitting for a conventional exploration well in 2012."

However, the planned moratorium may suspend operations longer than planned, should the decision be approved on Monday.