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| One of the oil wells in Shpirag |
Albania is poised to conduct the final testing for oil extraction in the Shpirag block, with preliminary results from Shell indicating optimism. Minister of Infrastructure and Energy, Belinda Balluku, expresses confidence in the presence of oil in the area and discusses the possibilities and challenges of extracting up to 300,000 barrels per day.
Key Points:
Confirmation of Oil Reserves: Minister Belinda Balluku confirms the presence of oil reserves in the Shpirag block, eliminating any doubts about the potential. The focus now shifts to evaluating opportunities and addressing challenges associated with extracting significant quantities of oil.
Challenges Ahead: While the confirmation of oil reserves is a positive development, the primary challenges lie in managing the flow rates. The goal is to handle up to 300,000 barrels per day, creating a substantial impact on the Sovereign Fund and the state budget.
Testing Phase: The final testing phase for oil extraction in Shpirag is scheduled for March. Minister Balluku emphasizes the importance of successfully managing the anticipated flow rates to achieve the desired impact on national finances.
Contract with Eni: The Shpirag block in Berat is the sole location under exploration for oil resources in Albania. Meanwhile, a contract with the Italian company Eni for research in the Dume area has not yet become active.
Future of Patos Marinzë Oilfield: Minister Balluku discusses the management of the Patos Marinzë oilfield, anticipating possibilities following the conclusion of the contract with Bankers Petroleum. The options include state management and the potential for a new concessionary agreement.
Conclusion:
Albania's progress in oil exploration and extraction in the Shpirag block marks a significant development for the country. The optimistic preliminary results from Shell's tests set the stage for the final testing phase in March. Successfully addressing the challenges of managing substantial flow rates will be crucial for maximizing the impact on national funds and the state budget. Additionally, the discussions around the Patos Marinzë oilfield highlight the government's considerations for effective resource management and potential future partnerships in the energy sector.