Bankers Petroleum announces possible deal with Albanian Government on tax issues

Admin // Economy


April 8  

The biggest oil extraction company in Albania, Bankers Petroleum announced today that is currently under negotiations with the government of Albania for its fiscal regime, after the government decided last year to cancel the majority of tax incentives for this industry.

“The company had received guarantees from the government for compensation of financial effects brought from fiscal changes,” Bankers said in a press release. “Within the second quarter of this year, we expect to reach an official agreement on that.”

The government canceled tax incentives for oil extraction industry that were first introduced in 1994, due to its fiscal deficit issues. Such measures were expected to create at least 70 million USD extra revenues for the government.

Bankers Petroleum Albania announcedalso an increase of 3.2 per cent of its oil production in Patos-Marinza oilfield for the first quarter 2014 compared to the last quarter 2013. The average daily production grew to 19,911 barrels of oil per day.

Oil sells fell by 6.5 per cent to 18,435 BPD while oil inventory increased to 444k barrels.

The average selling price for Patos-Marinza was 87.35 USD per barrel, a slight increase from the previous quarter.

Bankers also announced plans to develop an electricity network in its oilfield, after the Government of Albania decided to annul fiscal exemption for fuel used by the oil extraction industry.