Bid Round for Oil Exploration in 3 Onshore Blocks Launched

TIRANA, October 7

Recently, the Albanian Agency on Natural Resources (AKBN) launched an international licensing round for three onshore blocks respectively, Block C, Panaja, and Dumrea.
The offer on the onshore bids is due December 19th, while the licensing round follows the bid on Block 5. According to the announcements, the exploration stage will be five years, but it can be expanded up the seven years conforming to the Albanian Petroleum Law. (See below for details, maps and terms, and conditions)

In general, Albania offers investment opportunities to international and multinational oil companies. Regarding the fiscal regime, investors, Albanian and international, can negotiate fiscal stability terms to mitigate the negative effect of future changes in the applicable tax legislation for 12 years from the date production commences.

ESG – New Trend in Oil and Gas Investment

Oil exploration and production sector get considerable attention among traditional oil and gas investors and little love from climate change activists and ESG investors, as the lion’s share of total emissions in the atmosphere comes from burning fossil fuels. This is one of the reasons why many oil and gas companies have embraced Environmental, Social, and Governance (ESG) principles. They put constraints on where they would invest and this pressure forces traditional oil and gas companies to adapt, especially institutional investors.

The transition from fossil fuel to clean energy will take time, while the demand for oil and gas will remain high during the upcoming decade. These principles help to avoid various environmental and social risks related to Oil exploration and production (Delvina case 2012, groundwater contaminated during gas exploration).

Announcements: HERE

Source: AKBN