The Environment Ministry, which has drawn up a draft government resolution, says that once the permit is issued to Chevron's Lithuanian subsidiary, Chevron Exploration & Production, it will be able to carry out geological surveys in the Šilutė-Tauragė field.
It is not clear yet what tax rate will be applied to shale gas production. Deputy Environment Minister Daiva Matonienė told BNS on Wednesday that the ministry was "finalizing the economic justifications" and would present them to the government's strategic committee next week.
Some members of the Seimas (parliament) propose to levy a 40-percent tax on shale gas and to apply a uniform basic 25 percent rate on crude oil and gas. Chevron has said that the proposed tax rates would be discriminatory. Environment Minister Valentinas Mazuronis said on Monday that the proposed rates were "somewhat too high."
The government's decision to name Chevron the winner of the tender will be final. Then an agreement with the US company, which was the sole bidder, will have to be signed within 90 days.
It has been announced that Chevron will have to invest at least 80 million litas (EUR 23.2m) in the 1,800-square-kilometer Šilutė-Tauragė field.
