As already announce the Albania Ministry of Energy and Industry, has open
the Areas 4, 5 and Dumre, C and Panaja with deadline of application 15.07.2015 and
other offshore and onshore Areas, due to the consolidation of seismic data, to a
postponed period.

Therefore, about an overview of the sector as reported by the annual
report of the energy community for the 2014, it can start by saying that the
country is an exporter of crude oil through the oil port Vlora 1. In 2013, oil
production was around 1.2 mt, 15.6% higher than in 2012, which is due to
significant foreign investment. Exports that reach around 1.116 mt compared to
937 kt in 2012, an increase by 24.5%.

The state-owned Albpetrol is active in the
development, production and trade of crude oil. Bankers Petroleum is the
biggest investor in the Albanian oil sector. It achieved a record level of
crude oil production of over 1 mt during 2013, representing an increase by 17%
compared to 2012. Production in 2014 was increase even further due to increased
investments in the Patos Marinza oil field.

The companies Petromanas Energy and Royal Dutch
Shell are currently exploring oil and gas production in Albania by performing
test drillings. The first phase of tests discovered significant amounts of
light oil at the Shpiragu-2 well. Petromanas Energy is drilling at the Molisht-1
well expected to reach a total depth of approximately 5,500 m.

As regards the production of refined petroleum
products, the volume of 63.2 kt processed in 2013 constitutes a decrease by
41.5% compared to 2012. Yet the volume of petroleum products exported increased
by 5% to 20 kt. At the same time, the import of petroleum products also
increased by 2.6% to a level of around 1 mt in 2013. The overall consumption of
petroleum products in 2013 reached at 1.094 mt (an increase of 8.5% compared to
2012).

Albania is currently considering how to redesign
its emergency oil stockholding system. The existing legislation related to oil
stocks stipulates requirements which currently cannot be met and is not in
compliance with Directive 2009/119/EC. The Government has established an
interinstitutional working group, which will review the existing legal and
institutional framework and foresee the present to the Government within 2014 a
proposal for the reform of oil stockholding policy.

Therefore in the here conclusions about the future
the main priorities for reforming the oil sector governance the existing
legislation related to oil stocks should be seriously modified or completely
replaced in the very near future. Moreover, should be the national incumbent’s
Albpetrol restructuring and privatisation. Among other changes, a financing
scheme should be established, and preferably based on a fee, which avoids
impacting the public budget. The necessary amendments should leave industry an
appropriate transition period to the new system.

For more keep update with the EU & WBs /
Albania Energy Investment Updates
or visit the Official Page
of ACERC
.