ALBANIA OIL SECTOR.ppt [Read-Only] - World Petroleum Council

ALBANIA OIL SECTOR
The Oil Industry in Expanded European
Union (Regional Conference)
April 10&11, 2003 Portoroz
Albanian Oil Production
� Albania had an early start in the development of the
oil industry
� The earliest oil discoveries were realised in 1918 at
Drashovicë and later in 1928, the Kuçovë and Patos
fields were explored
� Production increased up to 1.5 MTA by 1970 and
1974, it grew further up to 2.2 MTA.
� 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.

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0
Albanian Oil Production
shkembij gelqeror
shkembij ranor
konsumi
Albanian Oil
Exploration

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:
� 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

Organisational Structure of the
Petroleum Sector
The Oil and Gas sector are split up in to 3 companies:
• ALBPETROL, responsible for exploration and
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.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Dependency on imports
Prodhimi Vendas
Importi

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3300
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2700
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Development of by products Demand Demand(Ktoe Ktoe) )
1995 1995-2015 2015
White spirit
Koks Nafte
Vajra
Benzine
Solar
Diezel
Vajguri
Hollues
LPG
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 2015 (1,000 toe)
0
Ktoe
Heat
Nafta
Elektriciteti
Drute e Zjarrit
Burime te Rinovushme
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Total primary energy supply by products, (1,000 toe)
1999 1999-2015 2015
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0
KTOE
Transporti
Sherbimi
Non Energy Use
Industria
Banesat
Ndertimi
Bujqesia
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
(ex­traction 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

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 de­sign 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

Alternatives Natural Gas interconnections