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OIL AND GAS
Chevron leaves Lithuanian shale venture behind
by Daniel J. Graeber
Vilnius, Lithuania (UPI) Jul 9, 2013


Suncor, GE team to reduce emissions from oil sands
Calgary, Alberta (UPI) Jul 9, 2013 - U.S. company GE and Canadian oil producer Suncor Energy announced plans to find ways to reduce emissions and lower water use from oil sands production.

Suncor said it signed two agreements with GE that open the door to as much as $18 million in environmental investments. Agreements signed under the so-called Canada's Oil Sands Innovation Alliance call for the development of new technologies meant to reduce greenhouse gas emissions and water usage from the production of oil sands in Alberta.

"We have a world-class resource in Canada's oil sands that will supply energy for decades to come," Steve Williams, Suncor president and chief executive officer, said in a statement Tuesday. "And, responsible development of this resource is as important to everyone in the industry as it is to our stakeholders."

The provincial government in Alberta says about 0.15 percent of the total greenhouse gas emissions in the world comes from oil sands development. Extraction is water-intensive, though the government says operators recycle as much as 80 percent of the water they use whenever possible.

U.S. supermajor Chevron announced it has shut down its offices in Lithuania and sold off half of its interests in the country.

"Chevron closed its office in Vilnius, Lithuania," a statement posted Tuesday on its website said. "The company has divested its 50 percent equity interest in [joint venture] LL Investicijos."

In a separate statement, Swedish energy company Tethys Oil said it increased its stake in the Rietavas license in Lithuania from 14 percent to 30 percent as part of the joint venture in the country with Chevron.

"The work program, focused on evaluation of the license area for conventional and unconventional hydrocarbon potential, continues as planned and is not affected by Chevron's exit," the Swedish company said.

Chevron in a 2013 annual report said three exploration wells had been drilled into the Rietavas block and results were under evaluation. No estimate of the reserve potential was given.

Britain, Poland and Lithuania are among the handful of members of the European Union said to be rich in shale natural gas deposits.

No value of the transaction was disclosed. Chevron gave no reason for the divestment.

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