Deadline set for Albpetrol’s exploration licence

TIRANA, Feb. 15 – Two months after a law paving the way to Alpetrol’s 100 percent privatization was approved government has proposed some amendments limiting the winning bidder’s exploration rights to 25 years and excluding it from tax facilitations, the same as other oil companies operating in Albania.
The draft law foreseeing the sale of 100 percent of Albpetrol’s shares was approved last December amid debates with opposition MPs accusing government of lack of transparency with the sale of the oil extraction company, and warning they would vote against the draft law in Parliament.
The new procedure for Albpetrol’s sale was decided after consultations with US-based Patton Boggs, which last year was selected as an international consultant for Albpetrol’s sale preparing a report on the method of privatization. The company’s market value has not been determined yet and no date set for the international tender for its sale.
Albpetrol Sh.a. is a 100 percent state-owned company experienced in oil and natural gas extraction. It was set up in 1999 after the split of the state-run Albanian Petroleum Corporation (APC). It sells its product to the Albanian Oil Refiner ARMO, but also has full legal rights to export it.
Along with the insurance company INSIG, Albpetrol is one of the few remaining fully state owned assets.
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.
Last year, Canadian-based Bankers Petroleum oil and gas exploration company expressed interest in buying Albpetrol. In March 2011, Bankers took over production and royalty payments for all remaining Albpetrol active well production and also the expansion of the project area and development plan to include all of the contract area of the Patos-Marinza oilfield concession