The Albanian government is currently investigating ways to benefit from the Trans Adriatic Pipeline and an LNG import terminal that could potentially be developed by ExxonMobil and Excelerate, Report informs referring to the ‘Albania Upstream (Oil and Gas) Fiscal and Regulatory Guide’ report added to ResearchAndMarkets.com’s offering.
‘Albania Upstream (Oil and Gas) Fiscal and Regulatory Guide’ presents the essential information relating to the terms which govern investment into Albania’s upstream oil and gas sector.
Albania offers production sharing agreements for upstream petroleum operations. Several onshore acreages have been offered during the last few years, including Block B and E in 2021.
“Albania has capitalized effectively the interest for its upstream oil and gas sector by awarding three onshore blocks to Shell and one block to Eni between 2018-2019. A new Petroleum Fiscal Law has entered into force on February 2, 2021, which imposes an 85% limit on tax deductions and therefore, a minimum level of tax.
The law also includes ambiguous terminology regarding fiscal stability provisions for existing PSAs, which could create uncertainty for existing investors in the petroleum sector. The fiscal terms introduced by Albania over the last few years are less favorable compared to regional peers, which may discourage investments in the future,” reads the report.
The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state’s take from hydrocarbon production. Considering political, economic, and industry-specific variables, the report also analyses future trends for Albania’s upstream oil and gas investment climate.
In early July, Trans Adriatic Pipeline (TAP) AG., the Albanian Ministry of Infrastructure and Energy, and Albgaz Sh.a. signed a Cooperation and Handover Agreement on the Fier South Facility. TAP will design, procure and construct the Fier gas exit point, a multimillion Euro investment in the country.
According to the agreement, once the construction of the Fier South Facility is complete, the exit point will be handed over to the Albanian state and will be fully owned, managed, and operated by the government of Albania.
The new facility is a significant milestone for Albania’s gasification, as it will enable an interconnection point between the TAP transportation system and future gas infrastructure in Albania.
TAP transports natural gas from the giant Shah Deniz field in the Azerbaijan sector of the Caspian Sea to Europe. The 878 km long pipeline connects with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border in Kipoi, crosses Greece and Albania and the Adriatic Sea before coming ashore in Southern Italy.
TAP’s shareholders are BP (20%), SOCAR (20%), Snam S. p.A. (20%), Fluxys (19%), Enagás (16%), and Axpo (5%).