Prime Minister Edi Rama, accompanied by minister of Energy and Industry Damian Gjiknuri, visited today the Molisht-Shpirag hydrocarbon area, where Royall Dutch Shell and Petromanas Albania Companies are carrying out hydrocarbon exploration operations.

Molisht-Shpirag consists of the 2-3 research block, and according to Hydrocarbon Agreement, the first exploration stage has been completed. In the course of this stage, it was drilled the Shpirag-2 exploration well, whereas drilling of Molisht-1 well is underway. Investments at this stage amount to over USD 200 million, whereas drilling in search for hydrocarbons reaches up to around 3500-4000 meters underground.

Following drilling of Shpirag-2 well, a test was conducted in October-November  2013, which discovered the presence of a considerable quantity of oil and gas in this area.

The heads of research process informed Prime Minister Rama that actually the hydrocarbon exploration operations are concentrated on completion of the drilling of Molisht-1 well and include drilling of three other wells, a 200 million USD investment. Kastriot Bejtaj, Deputy Director General of Petromanas said that initial indicators of Shpirag-2 well have detected presence of hydrocarbon contents, light crude oil of very good quality, 150 tons per day and 50 m3 gas per day. He highlighted also the very good level of cooperation with National Agency of Natural Resources and local authorities.

Prime Minister Rama considered these data good news for hydrocarbon industry and Albanian economy, in general. The Prime Minister stressed that this sector faces a serious problematic and lack of transparency, which need to be addressed at an accelerated pace with restructuring of the sector.

“We are aware of the necessity of taking very rapid steps in restructuring of the entire sector to make such important actors, as you, feel comfortable not only within borders of this area, but also regarding all the relations with the sector, because we know that this sector has been extremely problematic, extremely non-transparent, extremely captured by interests that have harmed its perspective and reduced the incomes of the population. Meanwhile, in parallel – you by drilling and extracting and us by guarantying path of transparency, we could secure an absolutely complete reciprocal profit, what is more oil here is of a spectacular quality and it is a new quality for Albania,” the Prime Minister said.

Minister Gjiknuri considered it also good news and underlined that investments carried out in this block may boost oil production in Albania by 50 %.

“Above all, the oil quality is very good and could potentially boost Albania’s production by 50 %, which in financial terms means that volume of oil export will increase by about 70%. Importance of this block, if it develops in the right direction, based also on extremely serious investments of Shell and Petromanas, would be of good news for Albania, a huge increase of production with more incomes for the Albanian state and very good thing for oil industry, turning Albania into a very important oil production country with one of the best qualities of light crude oil in the world,” minister Gjiknuri said.

Explorations in these area have started since 2001 with the drilling of Shpirag-1 well, where was confirmed the presence of hydrocarbons in Shpirag structure. Both contracting companies – Royall Dutch Shell and Petromanas Albania are companies present in international markets.