The Chinese company that has a concession to exploit the Patos Marinza oil field has expressed its willingness to work with the Albanian government to reconcile obligations arising from the Arbitration Court's decision last summer. The statement comes after the arrests of several executives and former executives of the company, who are accused of tax evasion and financial fraud schemes at the expense of the state.
"In full compliance with national institutions and authorities, we confirm our readiness to implement, without reservations, the Decision of the International Court of Arbitration (IC) dated June 7, 2024, upheld by the Court of Appeal of Albania (Decision No. 479, communicated on July 1, 2025). Our legal teams are fully prepared to work together with the relevant Albanian institutions to ensure the comprehensive execution of this decision, in accordance with international standards to protect foreign investments and to ensure the successful implementation of a major energy project in Continental Europe, reflecting Albania's common national and strategic interests," the company announced in an official statement to the media.
The Albanian government and Bankers Petroleum clashed at the Washington Court of Arbitration, part of the World Bank, over tax expenses declared by the company in the years 2012-2017. The court decided not to recognize $236 million in expenses by the company, a decision that has fiscal consequences.
According to the concession agreement, Bankers is obliged to pay 50 percent tax on profits once the income it receives from the sale of oil equals all the expenses incurred for the exploitation of the field. According to the prosecution, until the end of last year, Bankers declared that its cumulative balance was negative by 117 million euros. This means that the expenses incurred for the extraction of oil from the first day of the concession are 117 million euros greater than the income generated from the sale of oil.
The non-recognition of $236 million by the Arbitration Court changes this balance and automatically leaves the company with cumulative profit, the moment when it must start paying 50 percent tax on profit. But even though the Arbitration decision is more than a year old now, the parties have still not reconciled the accounts in the general balance sheet.
This reaction from the company comes after the action, which led to the arrest of 10 people, including Chinese CEO Hong Ping Xiao, and former CEO Leonidha Çobo, accused of tax evasion and fraud schemes.
In this regard, the oil company says it is following "with sincere attention the criminal investigations, initiated by the Albanian authorities on July 2, 2025, in relation to several respected colleagues and former employees. Throughout this process, we continue to engage openly with all competent institutions, guided by a spirit of transparency, mutual respect and respect for the law."
Bankers' full statement:
Bankers Petroleum Albania Ltd. reaffirms its unwavering commitment to the “Albania 2030” platform and to a long-term vision that strengthens Albania’s energy security, economic sustainability and sustainable development. This commitment, which extends beyond regulatory obligations, is a solemn promise to the Albanian people and a clear support for the country’s leadership, rooted in trust, accountability and strategic partnership.
In full compliance with national institutions and authorities, we confirm our readiness to implement, without reservations, the Award of the International Court of Arbitration (IC) of 7 June 2024, upheld by the Court of Appeal of Albania (Decision No. 479, communicated on 1 July 2025). Our legal teams are fully prepared to work together with the relevant Albanian institutions to ensure the comprehensive execution of this award, in accordance with international standards to protect foreign investments and to ensure the successful implementation of a major energy project in Continental Europe, reflecting Albania's common national and strategic interests.
We are following with keen attention the criminal investigations, initiated by the Albanian authorities on July 2, 2025, regarding several respected colleagues and former employees. Throughout this process, we continue to engage openly with all competent institutions, guided by a spirit of transparency, mutual respect and respect for the law.
For example, under the leadership of our Chairman of the Supervisory Board, we plan to form an external team to conduct an in-depth self-investigation for the entire period, providing close cooperation and assistance to the Albanian authorities.
We have high hopes for the integrity and fairness of the Albanian judicial system and remain hopeful that this matter will be handled with the impartiality and care it deserves. We also express our sincere desire that the current security measures affecting our team members be reassessed in a manner that protects the continuity of our operations and reinforces trust in justice.
Driven by our commitment to innovation and operational excellence, Bankers Petroleum Albania is proud to reaffirm our commitment to continue investing in the country’s energy future. As part of this forward-looking vision, we are strengthening our governance and preparing to launch an advanced thermal technology designed to significantly improve oil recovery, reduce production costs and strengthen the long-term sustainability of our operations.
In addition, these improvements are expected to play a key role in supporting Albania's broader economic development and environmental objectives, by improving resource efficiency, reducing the ecological footprint of operations, and promoting the responsible use of energy assets.
This initiative marks a bold step towards positioning Albania as a regional benchmark for responsible and efficient energy development.
As we progress in all directions; legal, operational and technological, we continue to be fully compliant with the laws of the Republic of Albania, the terms of our concession agreement, the Iç and applicable international standards. Our path is one of partnership and shared prosperity; focusing on protecting long-term investments, promoting innovation, caring for the environment and contributing decisively to Albania's economic growth.
We see our role not only as an energy operator, but as a trusted partner in the country's development journey, committed to progress, stability and a sustainable future for all Albanians.
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