The Albanian government has decided to terminate their agreement with the Transatlantic Company which had received the right to use two oil and gas deposits in Fier and Vlora.
Due to non-implementation of the agreement, Albpetrol, which is state-owned company, notified the Transatlantic Company owners of the termination of their agreement. In a letter that reads in part, “For the development and production of hydrocarbons in oil fields in Vlora and Fier”. The Transatlantic Company owes about $20 million to the Albanian State for the period between 2007 and 2013.
The letter notes that the investment returns for 2015 were at 5% of the projected level of the Development Plan, and only 1% compared with the Work Plan and Budget for the year 2015.
Pursuant to the Commercial Register, the Transatlantic Albania company bank accounts, real estate and other registered activities for the period of April 2015 to August 2016, were 100% blocked by the bailiffs as they executed various debts owed to third parties.
Albpetrol emphasizes that the termination of the hydrocarbon agreement will become effective 120 days from the day the company was notified.
The State Oil Company will manage the wells and assets of the oil fields, and the Transatlantic Company is obliged to repay all obligations to the state.