MAY and have ...3 Jul 2019 00:03
The Ministry of Agriculture, Regional Development and the Environment may terminate the contract with the American company Frontera Resources International LLC, which obtained the right to search and extract oil and gas in Moldova, if it does not organize oil production in Moldova in the near future, in accordance with the 2017 contract. According to the Ministry, the companies have already sent a notification.
The agreement to grant Frontera Resources International the right to explore hydrocarbon deposits in the south of the country was signed on January 2, 2017. It says that the concessionaire receives an exclusive right to the geological study of hydrocarbons in Moldova with the subsequent exploitation of deposits. However, since Mold-Street reported , the American company has not made public a single report on the amount of oil or gas found in Moldova’s depths, although it previously promised to put at least 100 million barrels of oil on the market and invest $ 500 million in the Moldovan economy.
In May 2017, Frontera experts were supposed to arrive in Moldova to explore the fields. At the same time, in March 2019, the Ministry of Agriculture reported that Frontera still “did not register with the State Fund for Subsoil Information, Exploration for the Search of Hydrocarbon Deposits and, accordingly, did not start this work”. NM also tried to contact the company, however, all requests remained unanswered.
The office noted that Frontera had violated many of the provisions of the agreement. For example, the submission before February 15 of each year of the work plan and planned budget for each activity or information about working with applications, maps or charts.
The American company Frontera Resources, engaged in exploration and production of oil and gas, was founded in 1996. The company prefers to work in the market of Eastern Europe around the Black Sea. However, the publication NaturalGasWorld writes that, in fact, the company works only in Georgia in the "block 12" area of ??5 thousand square meters. km, in which it is a minority producer and exporter of crude oil, and also conducts an assessment of the gas complex in South Kakheti. In the first half of 2016, the company announced a loss of $ 10.9 million and accused the Georgian authorities of preventing gas exploration "in favor of maintaining the current monopoly."
Now Frontera is a participant in several lawsuits worth tens of millions of dollars in the United States, the Cayman Islands and Georgia.
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