Albania
Albania: Bankers Petroleum Cuts Investment Program On Falling Oil Prices
By Balkan Insight
By Gjergj Erebara
Albania’s main petroleum extraction company has announced further cuts to its investment program, blaming the fall in oil prices worldwide
Bankers Petroleum announced that it has revised its investment program for 2015 down to $153 million US (€127 million) due to the continued weakness of the oil price in the international market.
Last December, the company projected investments of up to $218 million US (€182 million).
“These adjustments have been made to ensure 2015 spending fits within funds generated from operations and cash resources in the latest oil price environment,” the company said.
The revised 2015 capital program utilizes a $50 per barrel average annual Brent oil price forecast in comparison to the budget announced on December 12, 2014, which was predicated on an annual Brent oil price forecast of $70 per barrel.
The international oil price fell from $110 US per barrel last July to less than $45 in January. It has recovered during the last few days to about $55 US per barrel.
Bankers Petroleum extracted some 20,700 barrels of oil per day during 2014 and generated revenue of more than $550 million. It is the largest company in Albania in revenue terms.
Lower prices are expected to cut the revenues of the company while lower investments will also cut production capacities.
Bankers was also hit during last days by the recent floods in south Albania. On February 1, Bankers was forced to shut 81 wells, the equivalent of about 3,500 barrels of oil per day, after rising water levels impeded access to facilities. The floods are over now and work has turned to normal.
Albania’s main petroleum extraction company has announced further cuts to its investment program, blaming the fall in oil prices worldwide
Bankers Petroleum announced that it has revised its investment program for 2015 down to $153 million US (€127 million) due to the continued weakness of the oil price in the international market.
Last December, the company projected investments of up to $218 million US (€182 million).
“These adjustments have been made to ensure 2015 spending fits within funds generated from operations and cash resources in the latest oil price environment,” the company said.
The revised 2015 capital program utilizes a $50 per barrel average annual Brent oil price forecast in comparison to the budget announced on December 12, 2014, which was predicated on an annual Brent oil price forecast of $70 per barrel.
The international oil price fell from $110 US per barrel last July to less than $45 in January. It has recovered during the last few days to about $55 US per barrel.
Bankers Petroleum extracted some 20,700 barrels of oil per day during 2014 and generated revenue of more than $550 million. It is the largest company in Albania in revenue terms.
Lower prices are expected to cut the revenues of the company while lower investments will also cut production capacities.
Bankers was also hit during last days by the recent floods in south Albania. On February 1, Bankers was forced to shut 81 wells, the equivalent of about 3,500 barrels of oil per day, after rising water levels impeded access to facilities. The floods are over now and work has turned to normal.
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