Presentation: How Albanian legislation facilitates the exploration and development of hydrocarbons Dael Dervishi, Executive Director, National Agency of Natural Resources (AKBN)

1. Presentation: How Albanian legislation facilitates
the exploration and development of
hydrocarbons
Dael Dervishi, Executive Director, National Agency of
Natural Resources (AKBN)

2. 2
HOW ALBANIAN LEGISLATION FACILITATES
ON EXPLORATION DEVELOPMENT OF
HYDROCARBONS
Dael DERVISHI
Executive Director
National Agency of Natural Resources
• Free exploration blocks;
• The sedimentary basins detecting oil and gas;
• Biggest reserve onshore in Europe (Patos-Marinza field);
• The discovery of Shpiragu oil resource.

3. MARINZA
VISOKA
BALLSHI
CAKRANI
GORISHTI
AMONICA
Status of Existing Oil Fields
 Managed from
Albpetrol;
 AKBN licensing
authority;
 Albetrol and Private
Partnership;
 PEP and ASP;
 Patos – Marinza;
 Governments target to
privatize Albpetrol.
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4. Status of Exploration Blocks
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 Licensed Blocks;
 Free blocks;
 Blocks under process
of agreement
termination;

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• Shell and Petromanas Energy Inc
announced that their first drilled well
Shpiragu 2 resulted with flow rates of
more than 1,500 barrels per day of oil
with 35 to 37 degree API oil and more
than 70.000 cubic meter/day of gas
observed during the test period.
• The cost of the 5,553 meters
exploration well reached $75 million.
• Shell 75% and PMI 25%.
• Greatest Oil discovery in the last 20
years.
• Molisht 1 and Shpiragu 3, 4.
SHPIRAGU DISCOVERY
Shpiragu- 2 well

6. 6Shpirag structure
Geological Reserves for
Shpiragu: 233 mm boe;
Geological Reserves for
Molisht: 142 mm boe
Geological Structure Shpirag

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• Albania is located on the Eastern side of the Adriatic Sea in
Southeast Europe and has significant natural resources that include
oil and gas.
• The Ionian and South Adriatic basins are located predominantly
in Western part of Albania.
• The South Adriatic Basin in this part of it remains one of
minimally explored offshore hydrocarbon area.
• Given the fact that the bulk of the basins are not enough
explored, the potential for large hydrocarbon reserves as exist in
the similar type of basins around the world would appear to be an
excellent possibility.

8. 8
• Reprocessed seismic data since 1990, recent
concepts in seismic stratigraphy and the analysis and
interpretation of multiple data bases from several previous
operators allowed for positive revisions to the geological
model and hydrocarbon assessment of the Ionian and
South Adriatic Basin.
• The revisions confirmed that important aspects which
are indicators of potential commercial hydrocarbons are
present.
• The result of the new discovery within blocks 2&3
shows the petroleum potential of the sedimentary basins
in the Albanian territory.

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• Albania is situated in the middle of the Helenid-Dinarid chain.
• Albania fold belt is separated from the Italian Apennine fold belt
by the Adriatic foredeep basin.
APENNINE ADRIATIC FOREDEEP BASIN ALBANIDES

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• Ionian basin is represented by the pelagic limestone outcropping in South part
of our country, able to generate oil and gas.
• Giant oil fields were discovered in Mesozoic carbonate traps, and a variety of
gas fields in Tertiary reservoirs in the Mollase deposits as parts of the South
Adriatic Basin.

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• Albania is considered as a
Hydrocarbon bearing province.
• Many oil field and gas field have
been discovered with the time.
• Oil field are related with Ionian
basin while gas fields are discovered
in both Ionian and Adriatic.
•The main oil field is Patos Marinza in
sandstone reservoir in the Middle
part of the country.
HYDROCARBON OCCURRENCES & PRODUCTION
ONSHORE OIL AND GAS FIELDS
Marinza Shpiragu
Marinza oil field
Shpiragu
discovery

12. 12
Top Miocene
TWT map,
showing
location of
Vjosa
Alban South,
and Semani
Prospects.
Durres
Tortonian-Serravaliant urbidites
Ballaj
Pliocene turbidites, 14.5bcfAlban
Alban
Divjaka
Upper TortonianDeltaic Sst,
8.4km2, UR 51bcf
Pliocene turbidites, UR 16bcf
Povelca
Messinian–TortonianTurbidites,
27km2, UR 8.8bcf
Frakulla
MessinianDeltaic Ssts, 28km2, UR
9.2bcf
GAS FIELD ONSHORE & PROSPECTS OFFSHORE

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OIL PRODUCTION
As the result of the foreign investments the oil production is increased.
In 2014 the production reached 1 250 000 tons.

14. OFFSHORE AND ONSHORE
SEISMIC ACQUISITION
• In the offshore blocks 11.124
km of 2D seismic profiles &
1.400 square km were
acquired and 6 exploration
wells were drilled with an
overall footage of 21.629m.
•In the onshore 3000 km
seismic 2D and 6 exploration
wells have been drilled.
• As a result of these
investments certain leads
have been prognosed and tow
oil and gas discoveries have
been declared in onshore and
offshore
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LEGISLATION ON PETROLEUM ACTIVITYLEGISLATION ACTIVITY
There are three principal laws related to petroleum exploration and/or production
in Albania:
The Law “On petroleum petroleum” (exploration and
production), No.7746, date 28.07.1993;
The Law “On the fiscal system on petroleum sector sector”,
No. 7811, date 12.04.1994;
• The Law “On national taxes”, No.9975, date , 28.07.2008.

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LICENSING PROCEDURES FOR PETROLEUM EXPLORATION
IN FREE AREAS
Presentation of an application for:
Evaluating Permit or
Petroleum Agreement.
• Approval of the application;
•Negotiation related to Main Terms and Conditions of the Petroleum
Agreement;
• Approval of Main Terms and Conditions of the Petroleum Agreement;
•Negotiation of the Petroleum Agreement;
•Signature of the Petroleum Agreement;
•Approval of the Petroleum Agreement.

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DATA ACCESS
According to the rules, exploration data are the property of the
State. These data are available to the representatives of a legal
person who is registered and approved by the Ministry or NANR, as
Data Room user.
All available data on oil and gas exploration in Albania, including
formerly acquired 2D/3D seismic reflective profiles and drilled wells
logs, are accessible.
The database contains all collected, processed and interpreted
information about oil and gas exploration, on offshore and onshore
of Albania.

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The database of seismic, geological, geophysical, geochemical and
other data on oil and gas exploration is complex and comprises: 2D
processed seismic reflective profiles in SEGY format and 2D filed data
(raw shots) in SEGD format, acquired during previous years - 1979,
1983, 1984, 1985, 1986, 1988. , as well as numerous well data with
logs.
Numerous reports and studies on conducted investigations, with
results of data processing and interpretation in analogue and digital
form, are part of the available data.
Data Room includes special depot with physical drilling core samples of
deep exploration wells, on offshore and onshore of Albania.

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ALBANIA – ATTRACTIVE COUNTRY FOR INVESTMENTS GOVERNMENT
GOVERNMENT’S REFORMS:
• Simplification of licensing procedures –National Licensing Center, Regulatory
Reform on Business Climate;
• Reorganization of the inspection system;
• Reforms of the fiscal and procurements systems
• New Law on Concessions (PPP) – compliant with EU directives and regulations;
• Successful implementation of the Interim Agreement of
Trade with EU;
• CEFTA – Free access to regional market;
• Reform for the reduction of the informal economy;
• Regulation of banking sector, adopting EU directives and legislation
.

20. 20
Albania Based on the geological studies, carried out in the
past by Albpetrol (Albanian state company) and those
(performed in the recent years by the foreign companies, it
appears that Albania, in spite of the existing oil and gas
fields, still has a very good potential and is very promising
area for further exploration in both onshore and offshore.
The recoverable potential in the Albania territory has been
estimated at more than 30 Tcf of gas and hundreds mmboe.
Several factors render the Albania attractive for hydrocarbon
exploration and development. These include larger and
growing markets for hydrocarbon products both domestic
and for export.

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The National Agency of Natural Resources is vested with the
authority to monitor and regulate the Albanian oil and gas
industry.
The NANR oversees all the activities of all the companies
licensed to engage in exploration and production petroleum
activity in the country to ensure compliance with the terms
and regulations relating to the conditions of the license.
The NANR over the years has helped in creating conducive
business environment for investors in this sector hence the
tremendous continuous growth.

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THANK YOU !