WIDEN provides an opinion in the field of oil and natural gas extraction

2 rugpjūčio, 2024

Based on a public procurement contract, WIDEN Latvia provided an opinion to the Ministry of Climate and Energy in July 2024 regarding the consequences and eventual risks of effectiveness of the licence agreement signed on October 31, 1995, between the Republic of Latvia, “AMOCO LATVIA PETROLEUM COMPANY,” and “OLJEPROSPEKTERING AB.”

The Licence agreement grants a license for oil exploration, research, and extraction, as well as outlines cooperation between the involved parties in oil and natural gas production in the territorial sea of Latvia. To this day, the Licence agreement has not come into force because the issue of determining the territorial sea boundary between the Republic of Latvia and the Republic of Lithuania has not been finally resolved.

On behalf of the Ministry of Climate and Energy, the WIDEN Latvia team, also provided an assessment of the compliance of oil production with the policy planning documents of the Republic of Latvia and the European Union, as well as other international documents, and the legal regulation regarding carbon dioxide storage in geological structures.

Additionally, the opinion evaluated in detail the possible scenarios of the Licence agreement coming into force, the consequences of a prohibition of hydrocarbon extraction, and the associated legal and financial risks.