Minister Gjiknuri announces changes to contract model with oil and gas companies

Minister of Infrastructure and Energy Damian Gjiknuri, while addressing a conference on hydrocarbons held in Tirana,  stated the government is considering to change the models of contracts with oil and gas companies in Albania.

According to the minister, wherever there is oil and gas there are discrepancies between state and private contractors, but the current contracts put the investment risk on the state.

“The risk should be passed on to the contractors. At present, only when the oil company achieves profits the state can take 50% of the profit tax. Contract models should be changed based on best European practices.”

“Perhaps these companies have to be taxed just like other businesses, but they themselves bear the risk of investing and the state gets its share,” Gjiknuri said.

The Energy Minister also announced the establishment of the Oil and Gas Institute, which foreign experts considered as one of the key links to be funded and supported.

This institution will serve as the best technical capacity to help Albania negotiate with potential contractors.

SCAN

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