The American company Frontera Resources will invest about US$6 million and will create between 200 and 300 jobs in Moldova. Prime Minister Pavel Filip and the company’s executive director Steve Nicandros on March 3 signed a declaration of cooperation on the exploration of hydrocarbons in the Dobrogea basin in southern Moldova, IPN reports.
Frontera Resources was selected as result of as bidding contest staged by the Government and was allowed to explore for natural gas and crude oil during 40 years.
After the signing of the document, Pavel Filip said the executive is interested in bringing investors that would create jobs, would pay salaries and taxes. He assured that the Government is ready for dialogue with the business community and will provide all the necessary support for the constraints experienced by investors to be overcome.
Attending the event, Minister of Environment Valeriu Munteanu said the exploration right covers one third of the country’s territory, on the Ungheni – Basarabeasca line and in the southern region. “In the 1950s-60s, it was proven that there are reserves of gas and oil in southern Moldova,” he stated.
The minister added that Moldova could turn from a country dependent on hydrocarbons into an explorer of crude oil. As regards the possible risks of ecological security, Valeriu Munteanu said they do not have high hopes, but wells could appear.
The annual investments of US$6 million will be made during the next five years, with a growth potential. If hydrocarbons are identified, the investments will vary between US$ 50 and 100 million. Under the contract, the state will get not less than 1% of the revenues earned from selling hydrocarbons. The investors are obliged to employ at least 60% of the personnel from Moldova.
