Some 14 companies are interested in submitting bids on Albpetrol’s purchase. The ministry is considering postponing the tender after a request by the companies
TIRANA, July 17 – Russia’s state-owned giants Gazprom, and Rosnef, Turkey’s ȡlik Enerji, and Canada’s Bankers Petroleum and Petromanas are some of the top companies who have expressed interest to submit bids on the privatization of Albptrol, Albania’s biggest remaining state-owned asset. Local media report Gazprom, which is already present in the region with a majority stake in Serbia’s NIS oil refinery, has expressed special interest to extend its activity in Albania with Albpetrol’s purchase, holding meetings with Albanian economy ministry officials.
Alexey Ovechkin, Executive Director of Serbia’s NIS Exploration and Production Block has confirmed in a recent interview interest to purchase production assets in the region. “Right now we are looking at buying one in Albania together with Gazprom Neft. “We are planning on expanding into Greece and Albania jointly with Gazprom Neft, while embarking on it independently would be a lot harder for NIS”
Canada’s Bankers Petroleum, which successfully operates the Patos-Marinza heavy oilfield in southwestern Albania, in the past few years, is also one of the favourites.
Turkey’s Calik ȡlik Enerji, part of the Calik group which operates in Albania in the telecommunication and banking sectors, is also reported to have expressed interest in submitting a bid. The Turkish company is known for its partnership with Russia’s Rosnef.
The interested companies are expected to submit bids on July 26. The evaluation of the offers will be concluded in a 30-day period, while the tender’s winner should be selected by November 2012.
Deputy Economy Minister Enno Bozdo says some 14 companies are interested in submitting bids on Albpetrol’s purchase. The ministry is considering postponing the tender after a request by the companies.
Government expects 300 million euros from the sale of Albpetrol’s assets and its exploration rights for a 25-year period.
Last March, majority MPs turned into law some changes to the privatization of Albanian state-owned Albpetrol oil company limiting the winning bidder’s exploration rights to 25 years and obliging it to respect current deals Albptrol has with its contractors. The changes were strongly opposed by opposition Socialist Party MPs who described the company’s sale as abusive, saying that investment in technology under state-ownership would turn it into one of the key sectors of the economy.
Debates became harsher when a newly proposed amendment giving the winning bidder oil exploration rights even in the Durres coastal area were approved to further increase the company’s value.
The new procedure for Albpetrol’s sale was decided after consultations with US-based Patton Boggs.
Ahead of the announcement of the privatization tender, Albpetrol oil company applied at the Energy Regulatory Entity (ERE) to obtain electricity and liquid gas trade licences in an effort to increase interest from potential bidders and raise the company’s market value.
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.
Currently, the company is undergoing staff restructuring in a reform that will make redundant some 2,500 out of its 3,800 workers by next September. Along with the insurance company INSIG, Albpetrol is one of the few remaining wholly-state owned important assets.
