Poland is looking to introduce new stipulations for shale gas production to support its budgetary interests. The new regulatory conditions will see the country earn revenues through levying taxes or administering a mandatory stake in the production, in a bid to maintain the revenue inflow while keeping a tab on inflation.
"Poland's interests could be protected through (special) taxes or fees or the state's stake in gas production from licences," Mikolaj Budzanowski, a deputy treasury minister told a seminar during an economic forum in Krynica. The new legislation may come into force as early as next year he said.
Unconventional gas production in Poland has steadily picked speed in recent years with as many as 90 exploration blocks licensed to oil majors like Chevron and ExxonMobil. The agreements however, only cover the exploration rights, the companies must revert back to the government for a sign off on production.
Poland is deemed a shale hot spot by U.S. Energy Information Administration. The country boasts of recoverable reserves estimated at 5.3 trillion cubic metres, the largest in Europe.
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