P.S.A Terms of Reference on Albania Free Exploration Blocks
Note by Lorenc Gordani | Sunday, June 21, 2015
The Ministry of Energy and Industry, acting through the National Agency of Natural Resources (AKBN) has announced the opening of available onshore and offshore areas for petroleum operation. The AKBN invites interested parties for applications in areas Areas 4, 5 and Dumre, C and Panaja with deadline of application 15.07.2015. Meanwhile for the onshore and other offshore Areas, due to the consolidation of seismic data, to a postponed period.
The AKBN has announced the opening of the applications for the above blocks, in accordance with the "Petroleum Law", No. 7746, date 28.07.1993, which authorizes the Ministry to enter into a Production Sharing Agreement (PSA), for exploration, development and production of oil & gas in the territory of Albania.
The PSA based on: Law No. 7746 dated 28 July 1993 “Petroleum Law (Exploration and Production)”, as amended; Law “On the Fiscal System in the Petroleum Sector (Exploration-Production)” as amended; Law No. 7928 “On Value Added Tax”, as amended; Law No. 8976, dated 12 December 2002 “On Excise”, as amended; Law No. 9946, dated 30.06.2008 “On the sector of natural gas”; Decision of Council of Ministers No. 547, dated 09.08.2006 “On Setting-up the National Agency of Natural Resources”; Law No. 9975, dated 28.07.2008 “On national taxes”, as amended.
However, the legislative framework guaranties considerable incentives to attract international petroleum companies and thus stimulate petroleum exploration in the country, and gives enough flexibility to the contractors for negotiating the contracts. The Government's objective is to negotiate terms with the petroleum industry, which are fair and balanced, bearing in mind the usual risk associated with exploration and the State's legitimate right for revenues as owner of natural resources. At the same time based on the fiscal law the Albanian Government pursue to encourage the development of small and marginal discoveries.