Rich in nature and natural resources, Albania is using the EITI to modernise governance of the extractive industries. The energy sector contributes 7% of GDP, and Albania recently expanded the EITI to cover the hydropower sector. The extractive sector was previously dominated by state-owned enterprises, but was opened up to private investment in 1994. The Albanian government is working to promote investment to stimulate development and job creation.
Albania’s energy sector includes oil and gas, mining and hydropower. All these sectors are regulated by separate laws and provisions. The Ministry of Energy and Industry is responsible for granting exploration and production licenses in the mining sector and evaluating applications for petroleum production sharing agreements (PSAs) and concession rights for the hydropower sector. The government receives most of its revenues through a share of production, plus bonuses, royalties, profit taxes and from direct investments in the sector. Revenues such as service tariffs and license fees are collected through the State Treasury System (Ministry of Finance). A state-owned enterprise, Albpetrol, collects a share of oil production and bonuses.
Production of crude oil has more than doubled since 2003. In 2014, crude oil production reached 1.3 million tons. The biggest operating oilfield is Patos-Marinza, which represents 87% of total crude oil production. Crude oil is mainly exported to Italy, Spain and Malta.
In November 2015, the Ministry reported 600 mining licenses, of which 112 related to extracting chromium ore in Bulqiza. Mining production was estimated at USD 175.5 million in 2014. China is the major buyer of the Albanian chromium and copper ore.
Source: Albania’s 2013-2014 EITI Report.
|Hydro power||10,000||GWh||Annual potential capacity of hydropower production|
A share of oil and bonuses are collected by the state-owned enterprises, Albpetrol and AKBN, whereas a royalty tax, profit tax, dividends and other payments are collected by the government. The government’s income from extractive industries and hydropower sector amounted at USD 120.4 million in 2014. The government’s share of oil production was 94304 tons in 2014, worth USD 37.3 million.
The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.
- Commodity trading is covered in the 2015 EITI Report
- Hydropower is included in EITI reporting.
- EITI disclosure mandatory in Mining Code.
- EITI Club of Journalists, a platform for journalists interested in extractives issues, offered by the national EITI secretariat.
There is legislation (Law 10304) obliging mining companies to implement the EITI. The Presidential Order No. 71 dated 21 July 2011 establishes the EITI structures and process. On 12 March 2015, the Kuvendi, the Albanian Parliament amended the hydrocarbon law (7746 from 28 July 1993) requiring oil companies to participate in the EITI.
Albania is using the EITI process for wider reforms in the sector, including the development of a revenue management plan to address informality in the mining sector and building its capacity in contracts.
This EITI Report covers Albania's extractive sector in 2016. It was published in August 2018.
This is the Albania EITI 2017 Annual Progress Report (in accordance with Requirements 7.4 and 8.4).
This is the Albania EITI 2016-2019 work plan (in accordance with Requirement 1.5).
This Validation has been completed.Albania was found to have made meaningful progress.Albania will have 12 months, i.e. until 13 February 2019 before a second Validation to carry out corrective actions.
Board decision: 13 February 2018.
Validation commenced on 1 April 2017.
Validation country visit: 5-10 June 2017
Secretariat initial assessment was completed on 11 August 2017.
The Validation report was issued on 1 November 2017.
Discussed in VC at meeting on 4 December 2017 and 12 January 2018.
This EITI Report covers Albania's extractive sector in 2015. It was published in December 2016.
This EITI Report covers Albania's extractive sector in 2013 and 2014. It was published in December 2015.
This EITI Report covers Albania's extractive sector in 2012. It was published in November 2014.
This is the Albania EITI 2014 Annual Progress Report (in accordance with Requirements 7.4 and 8.4).
This Albania EITI Validation report was published in August 2011.