The Extractive Industries Transparency Initiative (EITI) report shows that total government revenues from the country’s oil, gas, and mining sector were at US $33 million in 2009
TIRANA, Aug. 15 – The vast majority of 93 percent of the Albanian government’s revenues from the extractive industries come from the oil and gas sector, says a report by the Extractive Industries Transparency Initiative (EITI), the first since Albania became an EITI candidate country in May 2009.
The recently published report showed total government revenues from the country’s oil, gas, and mining sector were at US $33 million in 2009.
In 2009, the Albanian oil sector was represented by two international onshore production companies Canadian based Bankers Petroleum and Stream Oil & Gas, state-owned Albpetrol, and six international companies at the exploration phase.
Payments to the state by private companies consist of signature bonuses (for exploration permits), royalties and corporate profit tax.
In Albania, the extractive sector is basically represented by an industrial oil sector, contributing to the greatest and growing share of the state revenues and a medium and small-scale mining sector thriving largely on chrome, copper and nickel extraction.
Despite the large number of companies operating in the mining sector, government revenues from this sector are relatively smallؕS $2 million in 2009. Out of the 31 mining companies with a relatively significant production, only six small and medium-sized companies did not provide data in time to be included in the report. The report covered three minerals: chrome (13 companies), copper (13 companies) and nickel (five companies).
Exploration, exploitation and processing of mineral ores constitute a significant activity in Albanian economy; thought, reforms of the mining industry present significant governance challenges. The sector was previously dominated by state-owned enterprises. The Albanian government is now seeking to promote foreign direct investment in the sector, with the hope of stimulating development and job creation.
Albania has been an EITI candidate country since 16 May 2009. At its meeting on 9 June 2011, the International Board granted Albania a six month extension to complete the validation process by 14 November 2011. On 21 June 2011, Albania’s EITI working group signed a Memorandum of Understanding for the disclosure and publication of payments made by petroleum companies to the state. On 21 July 2011, Prime Minister Sali Berlsha signed a decree setting up a reformed working group with a balanced stakeholder representation.
The Extractive Industries Transparency Initiative (EITI) is designed to help increase transparency and credibility in the oil, gas and mining sector.
