Government approves contract for sale of ARMO state oil company

TIRANA, Sep 3 – The Albanian government approved a contract for the sale of 85 percent of the Albanian ARMO state oil company after negotiating terms with a U.S.-Swiss consortium in a deal worth 128.75 million Euros.
The consortium, comprising Texas-based Refinery Associates of Texas, and Geneva, Switzerland-based Mercuria Energy Group Ltd. and Anika Enterprises, won the international tender in June and held negotiations on terms for the sale.
Based on the contract signed Friday, the consortium would invest US$240 million over the next five years, including US$50 million for environmental protection, over the first three years.
ARMO owns two refineries, a research center, 11 depots and a network of gas stations, which it says were worth, in total, 109 million Euros.
Prime Minister Sali Berisha also said authorities had prevented illegal interference by some officials trying to prevent the sale after receiving payments, saying they received the proper response.
Now the contract will be ratified by the parliament.