Albania's revenues from mining rent reduced sharply due to drastic fall in oil price

Albanian state budget revenues from mining rent have suffered a drastic fall in the last years, director general of Albanian National Agency for Natural Resources (NANR) Dael Dervishi declared on Saturday.

According to the information from NANR, in 2014 the revenues recorded 61.20 million U.S. dollars, in 2015 preliminary revenues are reckoned at 32 million dollars, whereas this year's projections are estimated at around 22 million dollars, which is a very optimistic figure given the trend in the price of oil on international markets.

"If the oil price on international markets goes down to below 30 U.S. dollars, then the revenue collection from mining rent could drop to under 10 million U.S. dollars," said Dervishi.

In Albanian territory there are several companies which have linked hydrocarbon agreements on oil extraction, namely Bankers, Pa-Ma, TransAtlantic Ba-Ho, TransAtlantic Ca-Mo, Trans Atlantic Go-Ko, Transoilgroup, Visoka. Due to the current situation on international markets and the increased supply of oil, gives advantage to the oil extracting companies.

"If the oil price on markets is too low, production may drop off quickly leading to job loss for sub contractors or reduced price in the services they offer," concluded Dervishi. Endit