Albpetrol to be privatized within the year

This limitation also provides important changes in the management of the oil public resources, according to “Shqip” newspaper. Another draft law foresees a tax increase, the application of which is depended by the production.

If on one hand it was considered as necessary to preserve the Albpetrol rights that derived from third party hydrocarbon agreements, on the other there are propositions for the necessity of establishing time limitations of these rights. The Albpetrol agreement of 26 July 1993, which authorizes the implementation of the hydrocarbon operations in the sources that have been established by a Council of Minister Order, due to its quality as “a special hydrocarbon agreement”, doesn’t establish any deadline for the implementation of these operations by the state oil company.

The law amends aim to establish deadlines for the activities of research, production and marketing of the private-owned Albpetrol association. In these conditions, this company will be treated in the hydrocarbon research and production market in the same way as the other private subjects of this area.

“For the areas where the company will operate alone, the maximal deadline will be 25 years”, declared the Ministry of Economy, Trade and Energy.

The Albpetrol investor will not benefit from the fiscal package facilitations. When the company was under state management, the taxes were not fixed, at 50%, as the other companies, but it depended on the production level, starting from 30% for 20.000 barrels a day, to 50% for 50.000-60 .000 barrels a day.

“After privatization, the company must pay each fiscal year the tax on profit, realized at 50%, as foreseen for all other private subjects of this area”, the Ministry says.

The Privatization will close within this year to a level of 100%, and the asset value mounts to 450 million USD.

Top Channel