British firm to explore for oil in Albanian waters

Albania signed a £14m (€20.73m) deal with Britain’s MedOil PLC today for oil exploration rights in its Ionian and Adriatic Seas, the Ministry of Economy, Trade and Energy said.

MedOil, a London-based oil and gas exploration company working mostly in the Mediterranean and North Africa region, will carry out exploration in three stages in the Ionian Sea from the Karaburun Peninsula to the southernmost town of Saranda, and in the Durres area in the Adriatic Sea, according to a statement.

The contract will be prolonged to 20 years if exploration comes out positive and a well has to be drilled.

The area was explored from 1992 by Australia’s Hamilton Oil, but it left after three years having failed to find anything.

Albania produces about 350,000 tons of oil annually.