30 Jun Workshop on Raw Materials Transactions from State-Owned Companies / Commodity Trading
Launched on June 2016, one of the EITI International objectives and requirements (respectively 4.2 EITI Requirement) focus on strengthening Transparency on the sale of crude oil / (Commodity Trading) by State-Owned Companies by EITI member countries, on June 29, brought together at a workshop all members of Albania MSG and the National EITI Secretariat, the Ministry of Infrastructure and Energy, the Ministry of Finance representatives, Albpetrol representatives, NANR, AGS, Albgaz, Tax Directorate, FIAA, Business Representatives and Civil Society.
The EITI requirement 4.2 seeks to provide the necessary transparency, on how much State-Owned Companies in EITI countries benefit from volumes sold and revenues received from oil, gas and minerals and how much these revenues are transferred to the state budget.
This includes sales and export procedures, as well as sales to domestic buyers and refineries, and any other actor.
Albania has been invited by the International Secretariat initiative in Oslo to be part of a Pilot Project for Commodity Trading and in March 2018, EITI International has selected Deloitte Audit Albania as Contractor for the realization of the Project, to carry out a Transparency Assessment in accordance with the EITI Standard requirements for the Albanian Oil Sector as well as in the context of the Recommendations that came out by the International Validation Process.
The oil sector has historically been one of the strategic importance sectors and an important contributor to the country’s economic development with considerable reserves. In this sector, Albpetrol sh.a. is the only joint stock company with 100% of shares owned by the Albanian state.
The main role of the company is the production and trading of petroleum products and the monitoring of Petroleum Agreements.
The main purpose of this Report is to Review and identify the transparency gaps in the crude oil trading value chain, in consultation with the Albanian EITI, the MSG and the responsible government institutions; Ensure the capacity building of MSG and Albania EITI for transparency in the trading of crude oil; Produce a Final Report on Crude Oil Trading that addresses identified gaps and relevant recommendations.
This Report analyzes the new EITI International requirements for transparency in the oil and gas trading process from producing countries, by verifying the viability of EITI 26 Guidelines for the first Sales.
Deloitte has completed the analysis phase based on the information provided by Albpetrol and presented the preliminary findings and recommendations in the Workshop. The findings and recommendations of the preliminary Report will draw the approval of the MSG and will be implemented in the first official Transparency Report on crude Oil Sales which will be compiled by “Deloitte” on the following of this process.
Representatives of MSG, state institutions, representatives of Albpetrol and interest groups present in the workshop discussed in a constructive form about the findings of the preliminary Report, in order to optimize the conclusions and recommendations that will be reflected by Deloitte’s on the Final Report.