Deputy Economy and Energy Minister Enno Bozdo said the USD 250 million investment in the next two years would enable hundreds
of jobs, unveiling the confidence foreign companies operating
in strategic sectors have in the business climate in Albania
TIRANA, April 29 – Government says it has extended the licence of Dublin-based San Leon in the Durresi Block offshore Albania by another two years, which will bring USD 250 million of investments in the coastal city of Durres, estimated to contain huge reserves of oil and gas.
Speaking at the signing ceremony, Albanian deputy Economy and Energy Minister Enno Bozdo said the USD 250 million investment in the next two years would enable hundreds of jobs, unveiling the confidence foreign companies operating in strategic sectors have in the business climate in Albania and the Albanian government.
Thanking the Albanian authorities for their cooperation, San Leon Executive Chairman, Oisin Fanning said “the whole process from 3D acquisition to farm-out execution is taking longer than anticipated, but we are convinced that the best way to maximise value for our shareholders is to extend the farm-out process for as long as necessary. This Licence Amendment will assist us greatly in our efforts.” The Durresi Block is located on the proven Apulian Margin, on trend with a number of Tertiary gas and Mesozoic/Tertiary oil discoveries in the Italian Adriatic to the northwest, with the Patos-Marinza field, which is estimated to contain up to 5.7 billion barrels of original oil in place (OOIP) located to the south east.
The Alban Structure is located in 150m water depth with reservoir target range being between 1,500m to 2,500m. There are a number of project development options to Italy and Albania and sensitivity analysis confirms robust project economics. Multiple regional pipeline projects are planned for the South East Europe area, including the Trans Adriatic Pipeline, which is planned to run through the Durresi Block.
Europe- and North Africa-focused oil and gas group, Dublin-based San Leon acquired 840 square kilometres of 3D data in 2011 and the Company initiated a Pre-Stack Depth Migration (PSDM) of the data in March 2012. The PSDM was completed in September 2012 and a re-interpretation of the data is continuing.
