Oil and gas sector
Exploration, development, and production of oil and gas
Oil exploration in Albania began in 1918. Since then, oil bearing fields were discovered in the onshore and offshore areas as summarized in figure.
Albanian oil sources, which are distributed in the western and southwestern part of Albania, are mainly in two structures: sandstone and limestone. Currently these sources have considerable reserves but their full potential extraction needs advanced secondary methods.
Table below summarizes the reserves assessed through studies performed by foreign companies and Albpetrol between year 1985 and 1990. According these studies petroleum reserves at existing Albanian drill sites totaled about 437.6 million tons, however recoverable stocks estimated based on extracting methods applied in those years amounted to only 81 million tons. Estimated geological reserves from sandstone structures comprised 77.4% of total geological reserves, however their recovery was assessed at 13%. Recovery of geological reserves from limestone formations varied from 24% to 53%. Albpetrol reported cumulative crude oil production from both sandstone and limestone formation up to 31 December 2014 was reported at 58 million ton.
Albania’s known natural gas reserves have been estimated at 18,164 million Nm3 and lie mainly in the Kuçova and Patos areas. Albpetrol reported cumulative gas produced until the end of 2012 of 12,504 million Nm3.
Sandstone formations include Patos-Marinza, the largest oil field discovered in the country with geological reserves estimated at 258.4 million tons. Patos-Marinza comprised 60% of the geological reserves, however due to their formation their recovery ratio through primary extracting methods was estimated at 12%.
Albpetrol’s data in table show outstanding recoverable reserves at 31 December 2014 in Patos-Marinza at 5.7 million ton of crude oil.
However, Bankers Petroleum Ltd (“Bankers Petroleum”), which operates the oilfield through enhanced horizontal drilling method, reported larger reserves for Patos-Marinza oilfield.
According Bankers Petroleum press release, proven reserves at the end of 2014 in Patos-Marinza oilfield amounted at 122.3 million barrels equivalent to 18.5 million ton of crude oil. Proven plus probable reserves were reported at 191.4 million barrels equivalent to 41.4 million ton of crude oil.