Albania Oil and Gas Exploration and Production Market Volumes and Forecast by Terrain, Assets and Major Companies, 2021-2025

Albania’s total gross crude oil and condensate production capacity in 2020 was 14.7 thousand barrels per day (kbd), which is expected to decline with a CAGR of more than -10% by 2025. All of Albania’s producing fields are located onshore but offshore acreage has been offered and discovery has been made, but no offshore fields have been developed to date. In 1928, the Patos-Marinza oil field was discovered in Albania and is considered one of the largest onshore oil fields in Europe and has produced over 200 million barrels to date.

The majority of Albania’s oil produced is heavy oil, meaning lower recovery rates and circumstances requiring enhanced oil recovery (EOR) technologies. Producing fields are mature and investment in producing assets has been relatively limited over the last 5 years.

Albania crude oil and condensate production overview

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What are the market dynamics of the Albanian exploration & production sector?

In terms of natural gas production, no gas production is currently commercialized from the fields. Significant investment is required in Albania to build out its gas infrastructure to allow its gas resources to be commercialized. Certain fields in Albania do produce associated natural gas, however, production is mostly reinjected due to a lack of gas infrastructure. The country’s only recently producing gas field Delvina, ceased production in 2012 due to a lack of investment and gas market options. The current owners of the field Delvina Investment Partners Ltd plan to redevelop the field but to date, no activity has progressed.

Albania’s production in 2020 dipped from 2019 levels as the major producing field Patos-Marinza was forced to reduce activities in the first half of the year due to COVID-19 related disruptions. Production at the field did return to pre-pandemic levels in the second half of 2020. Production fell in several other fields in the country as natural declines and COVID-19 disruptions led to lower output in most cases. Terraoil Swiss AG re-commenced drilling operations in the Visoka block in May 2021 to improve recovery and production from the field, the company envisages further drilling once the takeover of the Cakran-Mollaj, Gorisht-Kocul, and Amonica PSA’s have been finalized. The company anticipates an agreement to be made in 2021, but as of yet, no such agreement has been realized.

To resist the terminal oil production decline expected in the country out to 2025 the major announced redevelopment plans for the Visoka, Cakran-Mollaj, Gorisht-Kocul, Amonica, and Ballsh-Hekal fields will need to materialize but require significant investment from the currently operating companies. Further upside could be realized should Royal Dutch Shell (Shell) progress with its Shpirag field development plans upon completion of ongoing appraisal work.

Albania has suffered from a lack of investment in its exploration sector, as a result, no new major discoveries have been announced in over 10 years. Despite this, in 2019 Shell drilled an appraisal well on the Shpirag discovery, Shpirag-4, which flowed an impressive 7,000 bd. Appraisal work is ongoing to determine whether the field can be developed commercially. Shell also submitted an environmental report for its Shpirag-5 appraisal well, however, the current status of this well is unclear. The company is also currently conducting geophysical surveys in the vicinity to better understand the area’s potential.

At the end of 2019, Eni SpA signed a PSA to explore the Dumre Block, located onshore Albania following a competitive bid launched by the Albanian National Agency for Natural Resources, marking the company’s re-entry into Albania. The company aims to obtain geophysical data on the block in 2022 to assess the prospectivity further. In March 2021, the Albanian National Agency for Natural Resources invited participants to bid for two onshore blocks, Blocks B & E. The deadline for submission has passed after being delayed from April to June 2021, but no successful bidders have been announced.

What are the key categories of Albania’s crude oil and natural gas production?

Onshore is the only category in the Albanian crude oil and natural gas production by terrain. The major assets in Albania’s crude oil and condensate production include Patos-Marinza, Gorisht-Kocul, Ballsh-Hekal, Visoka, and Cakran-Mollaj.

Albania exploration & production sector, by terrain type

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Which are the major companies in the Albanian exploration & production sector?

The key companies in Albania’s crude oil and condensate production sector include Geo Jade Petroleum Corp, Albpetrol ShA, and Anio Oil & Gas Sha. Geo Jade Petroleum Corp is expected to dominate the crude oil and condensate production sector even during the forecast period. Terraoil Swiss AG is expected to outperform Anio Oil & Gas Sha in the crude oil and condensate production sector during the forecast period.

Albania exploration & production sector, by key players

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Market report scope

This report provides an overview of the Albanian exploration & production sector. The report includes:

• Key details of active and upcoming oil and gas assets in the country
• Recently licensed blocks details, licensed blocks count by company, and latest discoveries
• Latest mergers and acquisitions, and awarded contracts related to the E&P sector in the country

Reasons to Buy

• Gain a strong understanding of Albania’s E&P sector
• Facilitate decision making based on strong historical and outlook of oil and gas production data, licensed blocks details, and discoveries
• Assess your competitor’s production outlook and licensed blocks count in the country
• Analyze the latest M&A landscape and awarded contracts related to the country’s E&P sector