TIRANA, July 28 – Three international companies, among which a joint venture between Canada-based Petromanas and the Royal Dutch Shell, have bid on two oil exploration blocks in Albania, the country’s Agency for Natural Resources has announced.
The agency says two companies have bid to get exploration rights for the onshore Block 4, including a joint venture by Shell Upstream Albania B.V, the Albanian subsidiary of the Royal Dutch Shell and Canada-based Petromanas.
The joint venture which was formed in 2012 and has made some important oil discoveries in the past couple of years in Albania seems to be the favourite, although no amounts have been disclosed yet.
Interland Investment SA, which the national agency has provided no information about and there is no information on the web, has also bid on Block 4.
The race seems tougher for the Dumre block in central Albania, where an Israeli subsidiary, Navitas Petroleum Limited, is competing along with the Petromans-Shell joint venture and Interland Investment SA. Navitas Petroleum, a private UK upstream exploration and production company, is the international oil and gas arm of the Israeli-based Delek Group.
The National Agency for Natural Resources says the race for three other onshore blocks, Panaja, C and 5, has been postponed for October 15.
Meanwhile, the Albanian government has cancelled tender procedures on the exploration of the Joni (Ionian) 5 offshore block in southern Albania which overlaps with Greece until the maritime border dispute is settled with the neighboring country.
The tenders come after government announced earlier this year plans to privatize Albpetrol oil company and offer investors onshore and offshore oil and gas exploration.
Prime Minister Edi Rama has described energy as one of the most important sources of Albania’s growth at a time when the country is set to become a regional gas hub from the construction of the Trans Adriatic Pipeline bringing Caspian gas to Europe through Albania, Greece and Italy.
Earlier this year, the Albanian government announced plans to complete the privatization of Albpetrol oil company after a failed tender in 2012, and make the free oil and gas blocks under Albpetrol’s management available to foreign investors for exploration.
Albania currently has 13 free onshore and offshore oil and gas block which are scheduled for concession.
Foreign investors engaged in oil and gas exploration in Albania are exempted from the 20 percent VAT, can have their exploration stage extended from 5 to 7 years and engage in production from 25 to 30 years.
Studies show Albania’s oil and gas reserves are estimated at 400 million tonnes, of which around 10 percent are easily extractable.
Several international companies successfully operate in Albania’s oil sector which has seen a boost in the past decade thanks to huge investments.
Canada-based Bankers Petroleum which operates the Patos-Marinza heavy oilfield in south-western Albania is the country’s largest foreign investor. Petromanas Energy, another Canada-based company and its Dutch partner Shell have recently made an important discovery from its Shpirag-2 well in Block 2-3, which covers an area of 3,450 square kilometres onshore south-central Albania.
