Albania’s oil exports rose to 1.25 million tonnes in 2013, worth around 70 billion lek (Euro 490 million), up from a mere 21,760 tonnes, worth 987 million lek (Euro 7 million) in 2005
TIRANA, Oct. 29 – Albania’s crude oil exports have increased by 57 times in volume and 70 times in value during the past nine years, emerging as one of the country’s top exports as several international companies have been given concession contracts to reinvigorate the industry which collapsed in the early 1990s along with the communist regime.
A study published by Open Data research centre shows Albania’s oil exports rose to 1.25 million tonnes in 2013, worth around 70 billion lek (Euro 490 million), up from 1 million tonnes worth 53.3 billion lek in 2012. Back in 2005 soon after Canada-based Bankers Petroleum had been granted a 25-year concession to operate the Patos-Marinza oilfield, the biggest in Albania, oil exports were at a minimum of 21,760 tonnes, worth 987 million lek (Euro 7 million).
Italy, Spain, Malta, Germany and France are Albania’s top destinations for crude oil exports.
Albania’s oil products have emerged 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.
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.
Albania’s oil exports are 2.4 times higher than the amount of oil Albania imports. Albania imported around 432,000 tonnes of oil in 2012, down from 457,000 tonnes in 2011 and 484,000 in 2010, a trend which reflects rising fuel prices and global crisis impacts which have slowed down the Albanian economy.
“Efforts to process domestic oil and launch it into the domestic market have failed even because of poor management of the state-owned Albpetrol oil company which supervises the Patos-Marinza oilfield,” say Open Data experts.
Albania is estimated to hold oil reserves reaching up to 400 million tonnes with the Patos-Marinza oilfield in south-western Albania is the main producer. The oilfield, considered one of the largest in Europe has a surface of 44,000 hectares and annual production capacity at 7.7 million barrels of oil.
Albania has a long history of oil and gas operations however the civil unrest that followed the collapse of communism in the early 1990s resulted in delays to previously planned restoration and enhancement of production. Oil was first discovered in Albania in 1918 at Drashovice, in the southern district of Vlora. In 1928, the Patos Marinza oilfield was discovered, containing a reported one billion barrels of 8o to 10o API oil, which would make it one of the largest onshore oilfields in Europe.
Consumption, investments recover
TIRANA, Oct. 30 – Both domestic consumption and private investments, the two key drivers of Albania’s growth registered a boost in the first three quarters of this year, unveiling positive signals of a recovery of the Albanian economy in the second half of the year.
The value added tax, which indirectly measures domestic consumption and is levied at a fixed 20 percent rate on almost every product and service, rose by 16.2 percent in the first three quarters of this year, according to the Finance Ministry.
Meanwhile, data published by INSTAT show imports of machinery, equipment and spare parts, an indicator measuring private investments were up by 9.5 percent to around 70 billion lek (Euro 500 million) leading the list of Albanian imports.
However, exports continued slowing down even in September 2014, while imports considerably recovered, negatively affecting the trade balance in a net importer such as Albania.
Data shows Albania’s exports slowed down to 6 percent in the first three quarters of this year compared to the same period last year, affected by a sharp cut in electricity exports due to the severe drought affecting the country’s wholly hydro-dependent electricity system.
Meanwhile, imports continue their growing trend unveiling a recovery in domestic consumption, but further widening the trade gap at a time when exports have slowed down to moderate single-digit growth rate.
INSTAT data shows imports grew by around 8.4 percent in the first nine months of this year, boosted by recovery in imports of industrial products.
Albania’s trade gap in the first three quarters of this year rose by around 10 percent to 205 billion lek (Euro 1.44 billion), according to INSTAT data. Meanwhile, the export/import coverage ratio dropped to 48.6 percent, down from 49.5 percent in the first three quarters of 2013.
