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| Albpetrol offices |
The selling authority, Albpetrol sh.a. announces the cancellation of the auction procedure "Open Procedure", with the object "Sale of crude oil, quantity: 48,000 tons", held on June 03, 2020, at 11:00 am, on the premises of the Ministry of Infrastructure and Energy. The reason for the cancellation of the auction procedure is due to the non-qualification of any bid and the failure to secure the competition, based on point 15 of the order no. 83, dated on February 10, 2012 "On the rules and procedures for the sale of hydrocarbon products", as amended, explains MIE.
Earlier, Albpetrol announced that the initial value of the oil that would be put up for auction would be calculated at the minimum initial price per unit according to the formula 73.3% of the Brent + K. Price.
At the delivery points: The minimum starting price per unit is: 73.3% of the Brent price - 2.71 USD / bbl + K - 73.3% is the coefficient that represents the average characteristics of oil (specific gravity, oil acidity,% of sulfur). - Brent is the USD / bbl price of Brent i Platts, published in the Public Procurement Bulletin. - USD 2.71 / bbl total average cost (transport, storage, stock, product analysis, insurance). - K- is the USD / bbl value offered by the bidder above the minimum selling price calculated by the formula (K≥0) ”was stated in the document.
The third auction that fails this year
This is the third auction opened this year by Albpetrol for crude oil after January with 31 thousand tons and March with 117 thousand tons, both of which failed due to lack of interest from operators.
Due to the coronavirus and the paralysis of the economy in a good part of the globe, oil reached record prices on stock exchanges while interest in buying and processing fell to a minimum. At the same time, a part of the companies operating in the extraction stopped working in their wells, a situation that also appeared in Albania where Albeptrol and Bankers Petroleum announced a work stoppage.
On the stock exchanges on Monday this week, a barrel of oil was shown at $ 38 with a slight increase from the close of the previous session reflected with only 0.5 percent change. The performance of oil prices is expected to be affected after the meeting of the OPEC ministers.
Albpetrol last sold oil at an auction in late May 2019 when 75,000 tons of oil were put up for sale. At the time, the purchase of crude oil was made by Al Global Oil for about $ 30 million.