Sat, May 26 2012

Jumping the horse

Fri, Feb 03 2012 09:01 CET 1583 Views
Jumping the horse

NEIGHBOURLY SUPPORT: The latest rally against shale gas exploration in Sofia was held on January 26 in front of the Romanian embassy, where protesters showed their solidarity with opponents of fracking in Romania.

Photo: Krassimir Yuskesseliev

A week after Parliament passed the motion banning hydraulic fracturing technology (fracking) in the exploration of shale gas, it emerged that the motion will have to be amended. Otherwise, the moratorium, passed with 166 votes in favour, under the vocal pressure of protesting environmental activists, will completely block all drilling and ground prospecting of oil and gas in the country.

The ban
Along with the ban on shale gas, MPs ruled to interdict any oil and gas drilling under pressure exceeding 20 atmospheres. Experts say that this is an absurd requirement because it effectively caps drilling depth at 200 metres.

"Even drilling for water goes further than that," the former head of natural resources and concessions directorate at the Economy Ministry, Hristo Kazandjiev, said.

The current head of the concessions department at the ministry, Tsvetan Petkov, told Capital Daily that drilling for industrial minerals such as kaolin and limestone is carried out under higher pressure. Some wells go as deep as four to five kilometres, while scientific geological prospecting may involve wells as deep as 10km.

According to Petkov, MPs should amend the moratorium to eliminate any reference to well depth. "It's not even clear what will happen to current wells," he said.

MPs did not consult the ministry prior to adopting the ban, which was fairly vague, he said.

Deputy Economy Ministry Delyan Dobrev has also come out to say that the moratorium needed amending because as formulated now, it would affect not just shale gas prospecting, but conventional exploration as well.

Bulgarian Chamber of Mining and Geology has issued a statement saying that the ban on hydro-fracking in Bulgaria could be interpreted in different ways and could be applied to conventional extraction of oil and gas.

Reactions
The moratorium has engendered confusion among companies currently prospecting for oil and gas in Bulgaria. The Economy Ministry has been flooded with requests to clarify how the moratorium's provision are to be enforced.

Assen Georgiev, a geologist with more than 30 years of experience who now supervises wells drilled by Rusgeokom BG near Rogozina, told Capital Daily that the moratorium would persuade all exploration companies to abandon operations in Bulgaria. Georgiev, who described the ban as "absolute folly" and "idiocy", said: "The people speaking on the issue are so incompetent that I am ashamed to listen."

Kolyo Tonev is the manager of Transatlantic Petroleum, the US company that has been exploring the gas field near Deventsi, where it has found significant quantities of natural gas. He said that the ban de facto blocked all exploration activities.

"One of our wells is 4300 metres deep and the other is 3200 metres deep, which makes them subject to the moratorium," he said. However, having invested $50 million, the company did not plan to abandon its operations just yet.

Even conventional exploration of gas via drilling uses the banned fracking technology, including at the Chiren gas field, estimated to hold 400 million cubic metres of natural gas, he said.

The moratorium also contradicts the law on the geological storage of carbon dioxide, passed by Parliament at second reading earlier in January (the law implements the provisions of Directive 2009/31/EC of the Parliament and the Council, according to the Economy Ministry). To implement the law's provisions, exploration and deep well-drilling will be required.

Damages
The absurd situation in which oil exploration firms found themselves could lead them to seek damages for lost business opportunities if wells have to be abandoned.

The Economy Ministry has confirmed that should exploration firms pursue legal action, the state could be held liable. The damages would not be inconsequential, given that a single well can cost between five and 10 million euro, industry sources said.

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Appointments

Employment Agency

Employment Agency

Kamelia Lozanova has been appointed the executive director of the Employment Agency, a position she has held ad interim since September 2011, following the resignation of her predecessor Rossitsa Stelianova. Prior to that, Lozanova was the agency's deputy executive director in charge of international projects and European programmes. She has been with the agency for more than 20 years. Lozanova has a degree in Slavonic philology from the St Kliment Ohridski University of Sofia.

Uniqa

Uniqa

Gloria Dimitrova has been appointed executive director and member of the managing board at Uniqa Life Insurance Bulgaria. Dimitrova began her career in 1998 at the insurance supervision directorate, but moved to the private sector and worked for professional services and insurance brokerage firm Marsh&McLennan and US insurer AIG, both in Bulgaria and the Middle East. She joined Uniqa as regional director for Sofia in 2010. Dimitrova has a degree in economics from the University for National and World Economy in Sofia and a master's degree in insurance from the Business Academy in Svishtov.

Kamenitza

Kamenitza

Yassen Lyubenov is the new head of marketing at Bulgarian beer brewer Kamenitza. Lyubenov has 12 years of experience in marketing in the fast-moving consumer goods sector and has started his career as assistant brand manager at Kraft Foods Bulgaria. He later became brand manager at Wrigley Bulgaria, with responsibilities for Bulgaria and Macedonia. Prior to joining Kamenitza, he was senior marketing manager at Wrigley Russia, where he was in charge of brand expansion into Ukraine, Belarus, Central Asia and the Caucasus. Lyubenov has a bachelor's degree in international business administration from the University of Lincoln, UK.

Beiersdorf

Beiersdorf

Bedros Kalfayan, general manager of skin care and cosmetics company Beiersdorf Bulgaria, will oversee the parent's company units in Romania and Moldova starting April 1. Following company restructuring, Beiersdorf's subsidiaries in the three countries were merged and are now one unit, part of Beiersdorf Central and Eastern Europe. Kalfayan joined Beiersdorf in 2007 as sales manager and was promoted to general manager in 2008. Prior to that, he worked for Axxon Bulgaria, Ferrero and Rubella. Kalfayan has a master's degree in industrial management from the Technical University in Sofia.

Hewlett-Packard

Hewlett-Packard

Sasha Bezuhanova has been appointed Hewlett-Packard public sector director for emerging markets, where she will oversee HP public sector activities in 63 countries, including Bulgaria. Bezuhanova will also be in charge of HP's relations with the European Union. Bezuhanova has been HP's public sector director for Central and Eastern Europe since 2008; before that she was general manager of HP Bulgaria since 1998. Bezuhanova has a master's degree in electronics from the Technical University in Sofia and has completed a managment programme at INSEAD.