By Benet Koleka
TIRANA, Dec 20 (Reuters) - Italy's Eni has signed
an exploration and output-sharing deal with 100% equity interest
with Albania on Friday for the Dumre block in the centre of the
Balkan state.
Eni was among other oil majors to enter Albania after the
fall of communism in 1990, but left the country in 1999 after
drilling three commercially non-viable wells in two offshore
blocks in the Adriatic Sea between Albania and Italy.
Interest in Albanian crude grew after Royal Dutch Shell
began drilling some five years ago to make a
significant discovery with a "a flow potential of several
thousand barrels of oil per day" at Shpirag in central Albania,
just below Dumre.
"The new entry after 20 years in Albania, in the Dumre
Block, represents a very important step for Eni, which is
committed...to help developing a key country of the Balkan
region and Italy's strategic partner," said ENI CEO Claudio
Descalzi.
The Dumre Block covers an area of 587 square kilometres and
is located approximately 40 km south of the capital Tirana, in a
"proven" hydrocarbon area, Eni said in a statement.
"With the award of Dumre Block, Eni, which is the operator
through the new subsidiary Eni Albania, took the commitment to
drill an exploration well...," the statement added.
Belinda Balluku, the Energy Minister who signed the contract
with Descalzi, said the benefits for Albania were higher
compared with previous contracts, but neither side gave details.
"Currently private investments in exploration for crude and
gas have reached $1.5 billion dollars and Eni's ambitious
programme will help increase that volume," she added.
(Reporting by Benet Koleka, editing by Louise Heavens)
