Albpetrol to operate on stock prices

TIRANA, July 5 – Oil products produced by state owned company Albpetrol will be sold based on stock market prices, according to a government decision.
The decision dated June 16 is aimed at increasing the revenues of the company which currently operates on fixed prices and is on the verge of privatization.
The changes to the law allow Albpetrol to sell its crude oil products to domestic or foreign markets based on stock prices.
The oil prices in stock markets, currently at 65 dollars per barrel would bring higher profits to the company and as a result more money in taxes to state coffers.
The state-owned oil production company posted a 2 million dollar profit in the first four months of this year, the Economy and Energy Ministry has said.
The good financial performance allowed Albpetrol to pay off 8.1 million dollars it owed to state institutions in taxes and bills.
Albpetrol produced 50,328 tons of oil in the January-April period, nearly 5,000 tons more than it had planned.
Albpetrol sells its product to the Albanian Oil Refiner ARMO, but also has full legal rights to export it.
The Economy and Energy Ministry has recently selected Patton Boggs Llp, a US based company as the international consultant for the sale of state-owned oil company Albpetrol.
The US company which also served as consultant for the privatization of oil refinery ARMO, has been given a deadline of six months to assess the company and decide on the method of privatization.
Albania has 200 million barrels of proved oil reserves. During the last two decades, foreign investors have spent almost 580 million US dollars in exploring projects but until now, few of the resources explored have been viable for production.