Block 4 deal follows closely on the heels of PNN’s Velca Block arrangement
Another oil exploration agreement has been finalized in southern Albania, offering further evidence that the southeast European nation is focused on realizing its energy potential.
Adrian Bylyku, the new director of Albania’s National Agency of Natural Resources (AKBN), announced in recent days that its deal on Block 4 has been finalized with Royal Dutch Shell, which is already carrying out exploration activities in Blocks 2 and 3.
“This year is considered successful, especially for the hydrocarbon sector, with concluding of the agreement with Shell for Block 4,” Mr. Bylyku told reporters.
The announcement follows closely on the heels of Pennine Petroleum Corporation’s Production Sharing Agreement (PSA) for the nearby Velca Block, which was just recently given final approval.
Pennine’s Velca Block deal had been the first new oil exploration agreement signed in Albania since 2009.
Block 4 lies to the east and south of the Velca Block. Both concessions are located along the so-called “String of Pearls” faultline, from which much of Albania’s oil production is generated.
“The Block 4 announcement with Shell is another step in the right direction for Albania’s energy industry,” says Pennine CEO N. Desmond Smith. “The Albanian government said earlier this year that it wanted to create an attractive climate for foreign investors in the energy industry, and we’re certainly seeing evidence of that now.”
Pennine representatives will be working with geophysical consultants to process all available geotechnical data and geological information, and then selecting a drill target in the Velca Block.