2493 tons of oil per day produced in Albania in 2018

2493 tons of oil per day produced in Albania in 2018
 Albania produced 910,000 tons of crude oil in 2018 and 956,000 tons of crude oil in 2017, about 5 percent less  compared with 2017 and 47 percent less than the 2014 peak production of 1.36 million tons, according to an analysis of Altax, which refers to official data.

Experts from the extractive industry say that companies that invest in industry have failed to cover the respective costs, and consequently Albania has so far benefited less than 2 percent of the value of production.

The highest oil production in Albania dates back to 1974 when the then communist state produced 2.25 million tonnes equivalent to about 38,408 barrels of oil per day in an industry involving 34 state-owned enterprises and employing of about 25,000 people. The oil production industry is the second largest exporter in Albania and employs more than 3,000 people.

The Albanian government only receives the rent as a national tax rate of 10 percent, since no company currently pays the profit tax rate that applies to the 50 percent profit level that is stated in the annual financial statements, according to Altax. Under current contracts, the concessionaires must begin to pay the profit tax once they have met investment costs. The Supreme State Audit (SAI) completed a performance audit on the "Procedures and Outcomes of Oil Accolades in Albania" at the beginning of 2017, noting that the impact on the economy of using underground assets was minimal, as in the effect on employment and on budget revenues.

Albania is rated as one of the richest European countries in the continental shelf oil reserves with a reserve of up to 220 million barrels and 5.7 billion cubic meters of natural gas. According to the Albanian Energy Association (AEA), Albania is estimated to have reserves of up to 277 million barrels. The Patos-Marinëz-Kolonja oil field is known as the largest oilfield in continental Europe. In total, 16 agreements have been signed for exploration of oil and gas production division, out of which 7 companies have been engaged in the extraction of crude oil in the southern part of Albania and 4 companies are engaged in exploration activities.

Total investment in oil exploration and exploration in at least the last few years is estimated to be up to 1.25 billion euros, with 1/3 of it being invested directly by Shell Company, which is active in the Albanian market in the 6 last years, while aiming additional investments planned in the amount of € 42.5 million starting in 2018 after a very positive discovery in the oil field of Shpiragu-2.

According to official data, Bankers Petroleum, the country's largest oil producer, which in mid-2016 was fully purchased by China's Geo Jade, accounts for the overwhelming majority of 89 percent of the total domestic production, while Albpetrol sh. a. production (state company) accounts for about 6% of domestic production.

The bulk of the oil exported to Albania is exported crude, making it a low value added product and only a part of it goes to the local refinery, Ballsh and Fier, which has changed ownership several times after the privatization failed in 2008, by going bankrupt some times in the recent decade.
2493 tons of oil per day produced in Albania in 2018 2493 tons of oil per day produced in Albania in 2018 Saturday, June 22, 2019 Rating: 5
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