CURRENT LICENSING SITUATION

Several Hydrocarbon Agreements are active for the exploration and production of oil and gas in Albania, based on which a series of companies operates, as follows:

For offshore oil and gas exploration:

• Production Sharing Agreement for Block 2/3, onshore, related to the company Shell Upstream Albania B.V, which entered into force in July 2009. Recently, this Contract was amended by Decision of the Council of Ministers no. 180 of 26.02.2020 and this decision entered into force with the publication in the Official Gazette No. 25 of 28.02.2020.

• Production Sharing Agreement for Exploration, Development and Production of Hydrocarbons for Block 4, onshore, related to the company Shell Albania Block 4 B.V., has been approved by the Council of Ministers, with Decision no. 350 of 12.06.2018 and published in the Official Gazette no. 87 of 14.06.2018. The effective date of this agreement is 14.06.2019.

• Production Sharing Agreement for Dumre Block, onshore, related to the company ENI, which was approved by the Council of Ministers on 26.02.2020. This agreement was published in the Official Gazette no. 27 of 03.2020, a date that is also considered as the Effective Date of entry into force of the agreement.

In the field of oilfield source development and oil and gas production;

• License Agreement for Development and Production of Hydrocarbons in the Patos-Marinza oil field, entered into force on 20/07/2004, initially with operator Saxon International Energy Ltd until the end of 2006 and since 2007 operates the company Bankers Petroleum Albania. Currently this license is in the development stage of oilfield source production.
• License Agreement for Development and Production of Hydrocarbons in Kuçova oil field, has entered into force on the effective date 02.11.2007, with the operator Sherwood International Petroleum Ltd. Currently this license is in the development and production phase of the oilfield source site.
• License Agreement for Development and Production of Hydrocarbons in Visoka oilfield, entered into force on 09.02.2009, initially with the operator IEC Visoka Inc until the end of 2011, then with the operator Transoilgroup jsc. until February 2018 and beyond with the operator the company Terraoil Swiss jsc. Currently this license is in the development and production phase of the oil field source site.
• License Agreement for the Development and Production of Hydrocarbons in Ballsh-Hekal oil field, entered into force on 24.08.2007, initially with the operator company Stream Oil & Gas until the end of 2014, then with the operator company Transatlantic Petroleum sha until May 2018 and later with operator company ANIO OIL & GAS. Currently this license is in the development and production phase of the oil field source site.
• License Agreement for Development and Production of Hydrocarbons in Delvinë gas field, entered into force on the effective date 24.08.2007, initially with the operator company Stream Oil & Gas until September 2014, then with the operator companyTransatlantic Petroleum until the end of 2015 and since 2016 with operator company Delvina Gas Company. Currently this license is in the development and production phase of the oilfield source site.
• License Agreement for the Development and Production of Hydrocarbons in the oilfield Pekisht-Rrasë-Murriz, has entered into force on the effective date 26/08/2013, initially with the operator company Phoenix Petroleum until May 2016, and then with the operator company Fin -Pek Petroleum. Currently this license is in the development and production phase.
• License Agreement for the Development and Production of Hydrocarbons in Finiq-Krane oilfield, has entered into force on the effective date 26.08.2013, initially with the operator company Phoenix Petroleum until May 2016 and then with the operator company Fin-Pek Petroleum. Currently this license is in the development and production phase.

Other existing oil and gas sources and specifically oilfield sources: Cakran-Mollaj, Gorisht-Kocul, Amonica and Drashovica, as well as gas sources Divjaka, Ballaj, Pocelca,

Panaja and Frakull oilfield sources are not part of the Licence Agreement and Hydrocarbon Agreement but they are administered by the state owned company Albpetrol jsc.