ALBANIA OIL SECTOR

The Oil Industry in Expanded European Union (Regional Conference) April 10&11, 2003 Portoroz

Albanian Oil Production l

Albania had an early start in the development of the oil industry l The earliest oil discoveries were realised in 1918 at Drashovicë and later in 1928, the Kuçovë and Patos fields were explored l Production increased up to 1.5 MTA by 1970 and 1974, it grew further up to 2.2 MTA. l By 1990, the crude oil production had fallen to about 1.1 MTA. Up to now, it is still declining for several reasons, reaching a minimum in 2001 at 0.3 MTA.

1

Albanian Oil Production 2400 2200 2000 1800

shkembij gelqeror

1600

shkembij ranor

1400

konsumi

1200 1000 800 600 400 200 0

Albanian Oil Exploration

2

Organisational Structure of the Petroleum Sector The oil and gas sector in Albania is administratively headed by the newly established Ministry of Industry and Energy (MoIE) and commercially supervised by the Ministry of Economy Under the MoIE, the National Petroleum Agency (NPA) is the responsible government entity for oil and gas licensing activities in Albania

Organisational Structure of the Petroleum Sector The institutions under direct control of the Minister like: l Scientific Centre for Hydrocarbons (Oil and Gas Institute) in Fier as a scientific unit; National Energy Agency (NAE), responsible for the Energy Strategy; • Institute for Pressurised Vessels and Institute for Product Quality as Inspection Authorities

3

Organisational Structure of the Petroleum Sector The Oil and Gas sector are split up in to 3 companies: •

ALBPETROL, production;

•

ARMO, responsible for refineries (Ballsh, Fier) as well as fuel wholesale and retail activities (based on indigenous resources);

•

SERVCOM, supporting Albpetrol in the field of development and drilling affairs.

responsible

for

exploration

and

Dependency on imports 100% 90% 80% 70% 60% 50%

Prodhimi Vendas Importi

40% 30% 20% 10% 0%

4

Development of by products Demand (Ktoe Ktoe)) 1995--2015 1995 3300 3000 White spirit

2700

Koks Nafte Vajra

2400

Benzine 2100

Solar Diezel

1800

Vajguri 1500

Hollues LPG

1200 900 600 300 0 1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Total primary energy supply, 1999 1999--2015 (1,000 toe)

4000 3500

3000 2500

Ktoe

Heat Nafta Elektriciteti Drute e Zjarrit Burime te Rinovushme

2000

1500 1000

500 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

2011 2012 2013 2014 2015

5

Total primary energy supply by products, (1,000 toe) 1999--2015 1999 2400 2100 1800 1500

KTOE Transporti Sherbimi Non Energy Use Industria Banesat Ndertimi Bujqesia

1200 900 600 300 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Privatisation of APC The Albanian Petroleum Corporation (APC) is the parent to the three companies ALBPETROL (ex-traction of oil), ARMO (refining and marketing of oil and fuels) and SERVCOM (technical services to the Group and other companies). They are undergoing restructuring with a view to the implementation of the Government policy for the privatisation of the petroleum sector

6

Market Structure As a matter of fact, in the Albanian petroleum sector all forms of businesses and technologies can be found, highly professional operation and new technology is going in parallel with small businesses thinking that they cannot afford meeting the regulatory standards and, as a result, are likely to face difficulties to continue operation in future.

Governmental Advisory Institutions The most important advisory institutions are:

• •

National Agency of Energy (NAE), having expertise especially in energy policy issues, energy analysis, energy planning and data base development; Scientific Centre of Hydrocarbons Research (Oil and Gas Institute, located in Fier), a technical de-sign and research institute for the hydrocarbon sector;

•

National Petroleum Agency, responsible for the supervision of exploration and extracting activities;

•

Inspectorate for Pressurised Vessels (IPV), technical inspectorate, dealing with safety aspects in handling of pressurised equipment used in the petroleum sector, etc. Inspectorate for Control of Oil and Lubricants (ICOL), a technical inspectorate responsible Institute of Transport, technical research and planning institute for the Ministry of Transport; Energy Regulatory Authority (ERE), officially entrusted with the regulation of the energy sector, but at present mainly concerned the regulatory task for the electricity sector

7

Alternatives Natural Gas interconnections

8