Energy Minister Damian Gjiknuri said the quality of oil discovered in Berat, southwestern Albania, is very good and could potentially increase Albania’s fuel exports by another 50 percent
TIRANA, Feb. 19 – Oil production in the newly discovered Shpirag 2 well in the district of Berat could increase Albania’s oil exports by 50 percent and also be used for domestic consumption due to its good quality, government officials say.
The Royal Dutch Shell and Canadian-based Petromanas have already completed the drilling of Shpirag 2 and are currently conducting drilling at Molisht 1, with total investments of around USD 200 million.
During a visit to the drilling site this week, Prime Minister Edi Rama promised the restructuring of the sector to increase transparency.
Energy Minister Damian Gjiknuri said the oil quality in Berat is very good and could potentially increase Albania’s fuel exports by another 50 percent. “Considering the good quality of fuel, exports could increase by 70 percent in financial terms. If duly developed based on serious investments by Shell and Petromanas, this would be good news for Albania and turn the country into an important oil destination,” he said.
In late 2013, Shpirag-2 was drilled to a total depth of 5,553 metres, and tested 400 metres of the target carbonate reservoir. Based on the previously drilled Shpirag-1 and the company’s current program at Shpirag-2, Petromanas and Shell believe they have identified in excess of 800m of oil column in fractured carbonate reservoirs at the Shpiragu structure.
Petromanas has a 25 percent working interest in Block 2-3 and is the operator. Shell holds the remaining 75 percent working interest.
“These are compelling results from a well that, due to difficulties encountered while drilling, is not the optimal wellbore into the reservoir,” said Mr. Glenn McNamara, CEO of Petromanas. “The results of the Shpirag-2 well are encouraging and support the potential of this oil play in Albania,” said Edwin Verdonk, Shell Vice President Exploration Europe. “We look forward to appraisal efforts next year to help us fully assess the volumes and production capability of this reservoir.”
In early 2012, Canadian-based Petromanas and Netherlands-based Shell oil giant announced a joint venture under which Shell acquired a 50 percent participating interest in the Blocks in exchange for payments and carried costs up to US$50.3 million.
Oil exports
Albania’s oil exports in the past eight years have increased by more than 30 times, emerging as one of the key exports, mainly due to huge investments by Canadian-based Bankers Petroleum which since 2004 operates and has full rights to develop the Patos-Marinza and Ku谶a heavy oilfields under a 25-year concession contract with the Albanian government. A study carried out by Open Data research centre shows that Albanian oil exports reached around 1 million tonnes, worth 56.7 billion lek (Euro 396 million) in 2012, up from 41.7 billion lek in 2011 (Euro 291 million) in 2011 and a mere Euro 13 million in 2005 just before the signing of the first concession contracts in Albania’s oil sector.
However, due to the poor quality of Albania’s crude oil and lack of processing industry, Albania meets almost all of its oil needs with imports. The Albanian oil is exported and mainly processed as bitumen, which is used in road reconstruction.
