TIRANA, March 15 – The Albanian government is offering three oil fields, currently managed by state-run Albpetrol oil company, to potential investors after taking them back under state administration last year.
The energy ministry says it is offering the Gorisht-Kocul, the Cakran-Mollaj and the Amonica oilfields, all located in the region of Vlora, southern Albania, and invites potential investors to submit bids until March 31, 2018 for concession deals with the Albanian government.
The Gorisht-Kocul and the Cakran-Mollaj were taken back under state control in early 2017 from U.S.-based TransAtlantic Petroleum, with the Albanian government claiming the concessionaire owed $20 million in debts.
Meanwhile, the Amonica oilfield was taken back into state administration in April 2017 from Albanian-owned Phoenix Petroleum for failing to meet contractual obligations.
The auctions for the three oil fields come at a time when state-run Albpetrol is undergoing restructuring to gradually reduce its excess staff and sell the majority of its remaining assets.
Albpetrol, currently employs about 1,200 workers, and is mainly involved in the supervision of concession deals with companies engaged in oil production and exploration.
The state-run company currently runs only 5 percent of the oil wells, some 1,200, while the remaining overwhelming majority is managed by foreign companies on concession contracts. The company’s assets are estimated at €95 million.
With international oil prices slowly recovering from the mid-2014 slump, the Albanian government has postponed privatization plans on the country’s state-run Albpetrol oil company.
In early 2013, the Albanian government invalidated a staggering bid worth €850 million on the privatization of Albpetrol oil firm after the winning bidder, Albanian-led Vetro Energy consortium, failed to pay the financial guarantee leading to the finalization of the contract.
Albania is a major oil producer, with the Chinese-owned Bankers Petroleum as the country’s largest producer and oil giant Shell involved in key exploration projects.
Albania currently has 13 free onshore and offshore oil and gas blocks which are scheduled for concession deals.
Foreign investors engaged in oil and gas exploration in Albania are exempted from the 20 percent VAT, can have their exploration stage extended from 5 to 7 years and engage in production from 25 to 30 years.
Studies show Albania’s oil and gas reserves are estimated at 400 million metric tons, of which around 10 percent easily extractable.
