Greek oil company claims $23 million against Albania

TIRANA, July 4 – A Greek oil company which had its storage tanks removed from Durres port back in 2007 is seeking a huge amount in damages in a U.S arbitration court against the Albanian state. Energjia.al portal reports that the amount which the Mamidoil Jetoil Greek Petroleum claims is USD 23 million. The clash began in 2007 when the Albanian government decided to stop shipping the gas processing and oil at the port of Durres, by transferring the activity to Porto Romano, outside Durres and Petrolifera, Vlore.
In May 2012, the Albanian government approved Euro 150,000 in additional funds for the Justice Ministry to handle advocacy tariffs in the International centre for Settlement of Investment Disputes (ICSID).
In two separate decisions, government approved a USD 100,000 and Euro 70,000 to handle administrative and advocacy expenditure.
Failure of the Albanian government to win the case would mean a huge loss for the state budget which is already facing crisis impacts and is expected to undergo cuts.
In a similar case, the Albanian state lost a case in an arbitration court against US General Electric in a contract to build an electric train.
In March 2010, the Albanian government was fined USD 20 million over the unilateral annulment of a 2003 contract, worth Euro 74 million with General Electric. The project cancelled in 2005 was aimed at modernizing the Tirana-Durres railway segment, known also as the electric train, which would have been linked with Mother Theresa International Airport.
In another arbitration case with the Burimi S.R.L& Eagle Games Sh.A the Albanian government has also approved 70,000 to handle advocacy tariffs at the ICSID in the gaming industry case.