Lithuania’s petroleum production shrinks by close to 20 per cent over one year2013-08-19
Based on statistics from the Lithuanian Geological Service, Lithuania’s petroleum production shrank by close to 20 per cent over one year. The decline mostly owes to exhausting petroleum resources and slow exploration for new oil deposits.
“It’s natural that when you use the same resources, at the end of the day they exhaust. So we need to look for new hydrocarbon resources – whether conventional or not. We also need to have a look at the taxation base for the state to benefit from produced petroleum on the one hand and to avoid disadvantaging the production companies on the other,” Minister of Environment Valentinas Mazuronis said.
In the first and second quarters of 2012 Lithuania produced 53,530 tons petroleum. The year-on-year figure in 2013 is 42,950 tons.
Over the last five years Lithuania produced 563,750 tons oil. Petroleum production has constantly declined:
127,710 tons in 2008
114,800 tons in 2009
111,500 tons in 2010
107,700 tons in 2011
102,040 tons in 2012
According to the deputy director of the Lithuanian Geological Service, Jonas Satkūnas, shrinking petroleum resources are also reflected in the rising amount of water extracted from oil deposits. Over the first and second quarters of 2013, water production from oil deposits saw a 5 per cent year-on-year rise (from 572,740 m3 to 601,160 m3). “The deposits produce increasing amounts of water rather than oil. This is a sign that the deposit is exhausting,” Mr Satkūnas said.
To date, Lithuania has explored three new oil deposits. Although small, they pay off in terms of operation cost. Based on the statistics of the Lithuanian Geological Service, the country is home to more cost-efficient deposits, but their thorough exploration is required.
In Lithuania, exploration is funded by the exploring company.
Public information division