TIRANA, June 10 – A state inspectorate has suspended Albania’s Armo oil refiner on environmental grounds and damaging local agriculture products.
The State Inspectorate for Environment says it has suspended the activity of the two Armo oil refineries in Ballsh and Fier, southern Albania, after evidencing the pollution of local water resources including the Gjanica River and the coastal area as a result of the discharge of oil waste.
“The pollution of the Gjanica River is a direct threat to agricultural products because of the use of water for irrigation purposes,” says the Inspectorate.
The Inspectorate says the suspension of activity will be lifted only after the company meets the environmental requirements.
Earlier this year, the Inspectorate also suspended the activity of Canada-based Bankers Petroleum after the explosion of an oil well and the Turkish-run Kurum steelmaker in Elbasan, central Albania, on environmental ground. However, local media report both companies continue operating, ignoring the suspension of the environment ministry inspectorate.
The Armo refiner has significantly increased its processing of oil since being taken over by an Azerbaijani company in mid-2013.
Last December, the oil refiner was fined 5 million lek (Euro 35,000) on environmental grounds after inspectors identified the company had discharged waste oil in the local Gjanica river.
Back in 2013, an Azerbaijan-based company took over the majority 80 percent stake in Albania’s ARMO oil refiner for an undisclosed figure as the company had been blocked by tax authorities and was involved in a chain of debts with banks and other market operators. The sale was also confirmed by the Economy and Energy Ministry which holds a minority 15 percent stake in the refinery after selling the 85 percent stake to a consortium led by Albanian businessman Rezart Taçi back in 2008. Official documents obtained by the National Registration Centre also confirm the changes made in the company’s extract and the sale of the 80 percent stake owned by Rezart Taçi ‘s to Heaney Assets Corporation which has also committed to pay off the company’s debts. In its 2015 programme, government plans to sell its 14.9 percent minority share in ARMO oil refiner for 22 million Euros.
Established in 1999 as a government enterprise, the Albanian Refining and Marketing of Oil Sh.A. (ARMO) was privatized in 2008. Headquartered in Tirana, Albania, its business is the importation and refining of crude oil and the wholesale distribution of petroleum products. With 1,500 employees throughout Albania, ARMO operates two refineries with a refining capacity of 1.5 million tons per year, three wholesale branches, a research facility, and an import/export terminal. The total storage capacity is 220,000 cubic meters. ARMO produces diesel, 10ppm, virgin Naphtha, bitumen, fuel oil, petroleum coke, sulphur and diluents.
