TIRANA, March 8 – U.S.-based TransAtlantic Petroleum has announced the sale of its loss-making Albanian unit to an unknown company named GBC Oil which has undertaken to pay off the company’s huge debts, raising doubts about the transaction.
In an announcement, the U.S.-based TransAtlantic Petroleum, which is also engaged in oil operations in Turkey and Bulgaria, says it has agreed to sell its Albania assets to GBC Oil Company Ltd in exchange for the future payment of a $2.3 million to a local bank and the assumption of $29.2 million of liabilities. TransAtlantic provides no information about the buyer whose headquarters, assets or experience in the oil sector remain unknown.
TransAtlantic says it undertakes to pay $12.9 million of liabilities related to the Delvina gas operations which may be assumed by a subsidiary of the company. Under the deal, TransAtlantic has the right to acquire up to 25 percent of the fully diluted equity interests in TransAtlantic Albania for nominal consideration at any time on or before March 2019.
The transaction comes few months after the company had announced the sale of its Albanian units following a sharp cut in international oil prices.
In late 2014, TransAtlantic acquired Canada-based Stream Oil & Gas for $28 million. Its assets include the Gorisht, Cakran and Ballsh oil fields and the Delvina gas field in southern Albania.
TransAtlantic reported losses of about $5 million for the first three quarters of 2015 in its Albania operations.
The transaction has alarmed Albanian authorities who doubt the company is trying to get off with about €13 million in debts to the government.
Sources by Albania’s state-run Albpetrol oil company say they might block the transaction unless the buyer commits to pay off debts estimated at Euro 13 million to the Albanian government through a detailed plan and the buyer is an experienced oil operator.
The sharp cut in international oil and base metal prices during the past year is having a negative impact on Albania’s oil and mining sector which has cut production and staff to minimize losses also affecting the country’s exports and the key royalty tax the government collects.
