Albania is growing very fast and has become vital for Europe’s energy security in the last decade.
Some quick facts about Albania:
- Patos Marinza: The largest oil field in Europe, operated by Bankers Petroleum, Official Sponsor of Balkans Petroleum.
- Delvina Gas Field: a proven gas condensate field. It lies on one of the largest gas structures in southeastern Europe
- TAP:Trans-Adriatic Pipeline will start bringing natural gas from the Caspian Sea to Europe in 2020. Albania has recently formed Albagaz to handle the transmission and distribution of TAP natural gas in the country and its neighbours. IAP is another fascinating Gas project to watch out for.
-Shell’s already invested: in Shpirag-2 and 3, with some very encouraging results.
If you are wondering how you could get involved in Albania, other than obtaining an exploration license, here are some great opportunities still available to a wide range of service providers:
Offshore and onshore oil and gas exploration and production equipment and services
Gas pipeline and Gas station equipment
Oil pipeline equipment (transportation from oil fields to oil terminals and refineries)
Oil storage equipment and underground gas storage equipment
Oil and gas terminal products
Exploration and Production
State-run oil firm AlbPetrol has estimated that Albania has oil reserves of 220 million barrels and natural gas reserves of 5.7 billion m3 gas. Albania’s Patos-Marinza oilfield is the largest onshore field in continental Europe, and onshore and offshore oil and gas opportunities have attracted dozens of foreign companies over the years. Albpetrol holds the Cakran-Mollaj, Gorisht –Kocul, and Amonica oil fields.
Companies that currently hold production sharing agreements with Albpetrol include:
Patos Marinza – Bankers Petroleum (2004);
Kucova – Sherwood International Petroleum/ Bankers Petroleum (2007)
Visoka – Transoil Group (2009);
Ballsh Hekal – TransAtlantic / Continental Oil and Gas (2016);
Drashovica, and Pekisht-Murriz – Phoenix Petroleum (2013);
Divjake, Ballaj-Kryevidh, Povelce, Panaja, Finiq-Karne, and Frakull – Phoenix Petroleum (2013)
Delvina – Global Energy Management (2016)
Albania’s territory is divided into the following onshore and offshore blocks and may offer opportunities for exploration and development of oil and gas fields.
The licensing for all vacant blocks is administered by the National Agency of Natural Resources (AKBN.)
Royal Dutch Shell operates in blocks 2 and 3, and is negotiating a lease agreement for block 4.
Onshore blocks 1, 5, 6, 7, 8, A, B, C, D, E, Dumre, and Panaja are currently free. Offshore block Rodoni is free.
The offshore Durresi Block operated by San Leon Energy, Joni 5 operated by Capricron/Medoil, while blocks 2, 3 and 4 and Block F are currently under review process.
Albania: A great country to do business in
Besides its prolific proven oil and gas resources, Albania is a great place to do business in. Led by the wonderful Dorina Cinari, EITI is monitoring all energy activities and makes a great partner to the Ministry of Energy and Industry (MEI).
The MEI has shown incredible stability and progress and has received increased interest from IOCs since we first met in 2012.
Dritan Spahiu, former Director at the MEI, currently on a new powerful role within the state-owned Albpetrol, has been a cornerstone in these efforts.
The entire MEI cabinet and the AKBN have been working really hard to attract foreign investors by continuous education, favourable licensing terms and excellent staff for the IOCs to work with.
Albania is one of the most promising (yet very under-explored) regions in terms of oil and gas exploration and production, and I’m sure we haven’t seen its full potential yet. There is just so-much-more we should expect from Albania.
Have you visited the Ministry of Industry and Energy or its subsidiaries yet? You will be overwhelmed by the kindness of its people, making them one of the most professional and active Ministries I’ve had the pleasure to work closely with.
We are looking forward to hearing more about potential developments in the industry and welcome them at Balkans Petroleum!
If you would like to meet with the Ministry of Energy and Industry, AKBN, Albpetrol and many more important Albanian leading organisations, secure your place at the Balkans Petroleum Summit, taking place on 16-17 October in Bucharest, Romania at JW Marriott Bucharest Grand Hotel.