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Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden) -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (456)	1/19/1998 1:58:00 PM
From: Tomas	Read Replies (1) \| Respond to of 2742

More on the Albania deal Albania signs oil deals with two consortia By Benet Koleka TIRANA, Jan 19 (Reuters) - Albania's struggling oil industry received a double boost on Monday as two international consortia signed onshore exploration and production sharing contracts, leaving little of the country uncovered. A group led by Austrian oil and gas company OMV (OMVV.VI) signed two contracts for three blocks while a second group led by U.S. oil major Occidental (NYSE:OXY - news) wrapped up agreements for another three blocks. ''The fact we signed five agreements for six blocks is a big success because most of Albania's territory is now covered by contracts,'' Fatbardh Ademi, head of the National Hydrocarbons Agency, told Reuters. ''Signing with two groups made up of seven companies is positive and also proves Albania remains interesting for oil exploration.'' OMV, which owns a 40 percent stake in its consortium, is partnered by British independent Enterprise Oil with 30 percent, Hungarian MOL and Clyde Expro -- a unit of Gulf Canada Resources -- each with 15 percent. The second consortium includes unlisted U.S. Anschutz Corp and Canada's International Petroleum Corporation (Toronto:IRP.TO - news), which own 30 percent and 20 percent, respectively to Occidental's 50 percent. Numerous foreign oil companies have been given concessions to explore for oil onshore and offshore in Albania since the former communist Balkan state invited bids seven years ago. None has yet struck it rich and some of them suffered damage during the social turmoil which enveloped the country after the collapse of bogus pyramid investment schemes last spring. Ademi would not reveal details of the investments planned under the 25-year contracts but said a minimum of $19 million would be spent exploring the six blocks during the first seven year phase. He said the foreign groups would operate all the blocks. ''Their partner is the Albanian state through the National Hydrocarbons Agency, not the (state-owned oil company) Albpetrol,'' Ademi said. OMV and Occidental have been active in Albania since 1989 and 1992, respectively and each also has an offshore concession. OMV said it had drawn up a work programme including seismic surveying and the drilling of at least one test well. ''Through the signing of these contracts, OMV... and its partners are confirming their interest in exploring the country's remaining hydrocarbon potential and further strengthening Albania's upstream oil and gas industry,'' it said in a statement. Ademi said he hoped the Occidental group would begin seismic surveying during the summer of 1998 and start drilling in the next couple of years. Albanian crude oil production fell to 74,575 tonnes in the third quarter of 1997, down from 87,250 tonnes in the second quarter which itself was already 30 percent below the same period in 1996. Prime Minister Fatos Nano last month signed a joint venture agreement with Britain's Premier Oil (quote from Yahoo! UK & Ireland: PMO.L) worth $250 million to increase oil production and build an 18 km (12 mile) pipeline.