Crude oil price hike for Albanian refinery

"At the current exchange rates, the Company's average domestic sales price increased to approximately US$27 per barrel", a company's statement noted. Between the two companies, it was agreed that the price would reflect an average Brent price, adjusted according to the quality of crude produced.

"The revised price results in a new equivalent Brent ceiling price of US$39 per barrel from the previous US$37 per barrel, and is not expected to decrease unless Brent drops below US$39 per barrel or the Albanian currency depreciates against the U.S. dollar. The renegotiated sales price is denominated in the Albanian currency", the statement noted.

Bankers Petroleum operates in the Patos-Marinza oilfield in central Albania regulated under a concessionary contract. Patos-Marinza is estimated to be the largest oilfield in continental Europe. The company’s targets are to increase output to 10,000 barrels per day, from the current production of 4,406 bopd.

Crude oil is acquired partly from ARMO sh.a, which is a state owned company and operates the sole refinery in the country. Parts of the crude oil are exported to Italy via Vlore harbor.

ARMO controls 20% of the domestic fuel market, with no exports, and is currently facing legal problems with environmental standards. Government of Albania intends to privatize a controlling stake in the company, but till now continues to lack offers from foreign companies.

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Posted by on Jan 11 2007. Filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry