Albpetrol to have electricity, gas licences

TIRANA, April 24 – Ahead of the announcement of the privatization tender, Albpetrol oil company has applied at the Energy Regulatory Entity (ERE) to obtain electricity and liquid gas trade licences in an effort to increase interest from potential bidders and raise the company’s market value.
Eduard Elezi, ERE’s legal director, admits the watchdog has already starting examining the applications. “The documentation submitted by the company fulfills all criteria to obtain the requested licences,” Elezi told reporters.
However, experts see Albpetrol’s latest move as a favour that is being done to the buyer of the 100% of Albpetrol’s assets in key markets.
Few weeks ago, majority MPs have turned into law some changes to the privatization of Albanian state-owned Albpetrol oil company limiting the winning bidder’s exploration rights to 25 years and obliging it to respect current deals Albptrol has with its contractors. The changes were strongly opposed by opposition Socialist Party MPs who described the company’s sale as abusive, saying that investment in technology under state-ownership would turn it into one of the key sectors of the economy.
The company’s market value has not been determined yet and no date set for the international tender for its sale. However, experts say Albpetrol’s assets are estimated at USD 450 mln.
Albpetrol Sh.a. is a 100 percent state-owned company experienced in oil and natural gas extraction. Currently, the company is undergoing staff restructuring in a reform that will make redundant some 2,500 out of its 3,800 by next September. Along with the insurance company INSIG, Albpetrol is one of the few remaining fully state owned assets.