Lithuanian Prime Minister Algirdas Butkevičius is planning a visit to the United States where he will meet with representatives of the US energy company Chevron to inform them about changes in the regulatory environment regarding shale gas exploration in Lithuania.
Chevron
© AFP/Scanpix

"Yes, I will go on a visit to the United States in October to present a new draft law. I believe that deliberations at the Seimas will not be so heated anymore and the laws will be adopted. The political situation has been changing and now local municipalities will be more interested in working with local communities," he said.

The PM did not want to forecast whether parliament will have time to pass the new amendments to the Law on Oil and Gas Taxation by his scheduled visit to the US.

On 17 September, the government approved of the draft law on Taxation of Shale Gas Exploration and Extraction.

In order to attract investment into shale gas exploration and extraction, it has been proposed to apply zero base tax rate on shale gas for three years since the authorisation date to use these resources but no longer than until 1 January 2020. Later, a fixed tax rate would stand at 15 percent.

Additionally, the government approved of the proposal to transfer 10 percent of revenues from the tax to municipalities where extraction takes place, so that they are also interested in attracting investment.

The US company Chevron withdrew from shale gas exploration in October 2013, citing changes in taxation, legal and regulatory environment.

It is forbidden to copy the text of this publication without a written permission from ELTA.

Court: Lithuanian companies don’t have to pay million-worth fine to Serbia

Arvi , a Lithuanian fertilizer, fodder, sugar and turkey meat production group owned by businessman...

Transport Minister: new airport could be built between Vilnius and Kaunas (1)

As the numbers of air passengers are growing in Lithuania, a new airport could be built between the...

MPs call on Adidas to stop sale of Soviet-themed clothing

Several lawmakers from the opposition conservative Homeland Union – Lithuanian Christian Democrats...

Lithuania one of the first countries in EU to establish the definition of a start-up by law

The Parliament of the Republic of Lithuania (Seimas) approved the definition of a start-up provided...

Transport Minister: Lithuania ready to test driverless cars

Lithuania is putting a lot of effort and is ready to test driverless cars , the country's Transport...