Albania seeking bids for oil, gas search in June

NG Energy International

18/05/2015 15:16

TIRANA, May 18 (Reuters) - Albania will offer companies 
interested in oil and gas exploration seven offshore and onshore 
blocks in June in a bidding process, officials said on Monday. 
    The small Adriatic state began preparing the bids a year ago 
after a yet-inconclusive but significant discovery by a venture 
between Shell  RDSa.L  and Petromanas  PMI.V  in southern 
Albania drew much interest. 
    Energy minister Damian Gjiknuri wants bids for onshore 
blocks Four and Five in southern and southeastern Albania and 
Dumre in central Albania to be handed in by June 15. 
    Bids for the remaining blocks, the offshore Ionian 5 and 
Rodoni and the onshore Panaja and C, would be accepted until 
June 25, Gjiknuri told the Natural Resources Agency. 
    Once the bids come in, the Natural Resources Agency will 
evaluate the offers and recommend the best one to the ministry 
so that it may negotiate a production-sharing agreement.  
    The companies would be able explore for an initial period of 
up to five years which can be extended to seven if needed, and 
they can develop and produce in the block for 25 years or more 
in accordance with Albanian oil laws. 
    Offshore oil exploration caused friction last week between 
Albania and neighbouring Greece after Tirana asked Athens, 
according to press reports, to stop its programme of offshore 
oil search until both countries resolve their dispute over the 
waters in the Ionian Sea. 
    Part of the Ionian 5 block offered by Albania overlaps with 
the Ionian Sea area in which Greece seeks to search for oil. 
    The previous Albanian government agreed a deal dividing the 
continental shelf with Greece, but was later reversed by the 
country's top court after a complaint brought by the ruling 
Socialist Party. 
    Attempting to play down the controversy with Greece, Foreign 
Minister Ditmir Bushati said on Monday that the area was subject 
to binding international agreements. 
 
 (Reporting By Benet Koleka, Editing by Ahmed Aboulenein) 
 ((Benet.Koleka@thomsonreuters.com; +355 4 222 98 24 ; Reuters 
Messaging: Benet.Koleka.reuters.com@reuters.net)) 
 
Keywords: ALBANIA OIL/