* Albania to sell state oil firm this year-PM
* Investors will be offered new exploration blocks
* Albania says has 40 million tonnes of easily extractableoil
By Benet Koleka
TIRANA, March 17 (Reuters) - Albania wants to try again toprivatise its state oil company this year, and will soon beginoffering its blocks for oil and gas exploration, Prime MinisterEdi Rama said on Tuesday.
The previous Democratic Party government, which Rama'sSocialist-led coalition ousted in June 2013, cancelled the saletwo years ago to a private buyer.
"We will end the long-drawn process of the privatisation ofthe state-owned Albpetrol company this year," Rama said.
"Since the very first day, it was clear to us Albpetrol wasan anachronism and a hybrid that could not meet the challengesof the future," he told oil executives.
His audience included representatives of Shell, alreadyactive in Albania, Exxon Mobil, BP, Italy's Eni, Austria's OMV and Croatia's INA.
Albpetrol is an upstream company only, having sold its oilrefinery four years ago.
Wooing investors, Rama said the government was determined to"secure a favourable regime for the exploration and developmentof oil and gas", including stabilizing fiscal clauses for theduration of contracts.
Oil and gas reserves are estimated to amount to 400 milliontonnes, of which 40 million are easily extractable, EnergyMinister Damian Gjiknuri said.
Thirteen onshore and offshore blocks can be explored for oiland gas, Rama and Gjiknuri said. "Very soon we shall startprocedures to give the first three blocks for exploration tointerested companies," Gjiknuri said.
Albanian law offered attractive fiscal terms during theexploration period, exempting companies from paying Value AddedTax, extending the research period from 5 to 7 years and theproduction time from 25 to 30 years, Gjiknuri said.
Shell and Calgary, Canada-based Petromanas EnergyInc already operate a well offshore Albania and havesaid test flows found oil and gas, but are yet to establish itsproduction capacity.
The well is across the Adriatic Sea from Italy's offshoreVal d'Agri field which pumps around 85,000 barrels per day. (Editing by William Hardy)