Gjiknuri: US consultancy on the fiscal and contractual regime of hydrocarbon agreements

Minister of Infrastructure and Energy, attended today the table supported by the US Department of State, Energy Resources Bureau, US Department of Commerce and Treasury, on the topic “Fiscal and contractual frameworks for the development of the hydrocarbon sector”. The conference serves to provide a global perspective on best practices in contracting and fiscal regimes in oil and gas, with the goal that Albania can attract as much investment in this field. In his speech, Minister Gjiknuri emphasized that Albania has hydrocarbon resources and can benefit most of them, but Albania needs a regulatory framework, improvement of legislation and above all the direction of the necessary capacities either by the fiscal authorities or by the authorities supervision of natural resources.

“Petroleum and gas assets are often a source of contractual conflicts. Often, where there is fuel and gas, there is a clash between government and private contractors. We have also witnessed the modest efforts we have made and the legal conflicts that we have started with the company, but it is time for us to think beyond our brief experience in this regard. It is time to realize a better fiscal and regulatory framework, why not, change our contract models as well.”

Mr. Gjiknuri further emphasized that in cooperation with the Ministry of Finance and with international assistance from the US Department of State, work is being done to design a simpler fiscal system. “Of course,” Gjiknuri went on further, “that could open up debate with existing contracts. We are in respect of the agreements. I do not want to give here the message that Albania will unilaterally change the agreements, but why not open a fair discussion, because the agreements become stable when each party takes what it belongs to. ”

Following, Gjiknuri said that the institution he leads is working for a profound hydrocarbon reform. “Whether with NANR that is the relevant authority, making a new organization and having a better resource management there, because ultimately everything starts from human resources, and we need to have better capacity to monitor contracts hydrocarbons. We will soon create the Oil and Gas Institute, and this will be a very technical institute, as we may have many oil data that are badly processed. An important element is the environmental element, that often we do not pay much attention. Unfortunately, the oil industry also has environmental pollution, and these are elements that we have missed in monitoring our contracts, “said Minister Gjiknuri.

In conclusion, Gjiknuri stopped at the country’s only state oil and gas company, Albpetrol, for which he said it would soon undergo a restructuring process. “Albpetrol will be reduced. Many Albpetrol assets will be given to foreign investors, and Albpetrol’s remaining employees will be treated for a transitory payment period, but we can no longer keep a company that simply consumes income that come from oil and that practically do not bring anything great to the Albanian public “, – concluded Minister Gjiknuri.