The state-owned oil company, Albpetrol, announced an auction for the sale of 100,000 tons of oil. According to documents announced at the Public Procurement Agency, the oil that Albpetrol obtains from its own production, but also from concession companies, will be put up for sale at a floor price of 77.45% of the Brent Price plus a K coefficient, on Free On Board, FOB terms.
The K coefficient is the price at which companies compete in the auction, where the buyer offering the highest coefficient is declared the winner. Meanwhile, at the delivery points, the minimum initial price per unit is 77.45% of the Brent Price – 4.04 USD/bbl + K.
In the floor formula, Brent represents the price in USD/barrel of Platts Brent, published in the Public Procurement Bulletin, -4.04 USD/barrel is the average total cost (transportation, warehousing, stockpiling, product analysis, insurance), while K is the USD/bbl value offered by the bidder above the minimum sale price calculated by the formula (K˃0),” the auction documents state.
According to the auction documents, the location of the crude oil is at Albpetrol sha Patos, respectively at the delivery points: Usojë Station, Visokë Station, Gorisht Station, Zharrëz Station, Kuçovë Station, Amoniće Station.
The auction for the sale of oil will be held on August 8 at the Ministry of Infrastructure and Energy, with bids opening at 11:00.
Currently, the price of Brent crude oil fluctuates around $510 per ton, which means that through this auction, Albpetrol is expected to collect at least $50 million.
For years, Albpetrol has not paid a single lek into the state budget, and almost all of the income that the state-owned company secures from the sale of oil goes to finance salaries, but also its other expenses.
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