Terraoil has been producing oil in Albania since 2012.
Terraoil uses environmentally friendly primary high standard production methods and applies leading western technology to leverag productivity in oilfields which have historically underperformed due to the use of outdated equipment and operating methodologies. The Visoka Field has been operated by a subsidiary of Terraoil since February 2012 under a production sharing agreement with the Albanian government. The Company has invested over USD 80 million in capital expenditures and operations since 2012. Upon finalization and signing of the production sharing agreements for additional fields with existing production located in Cakran-Mollaj, Gorisht and Amonicë Terraoil will hold 100% interest in four onshore oil fields in Albania. The producing assets, located in the south of the country, deliver medium to heavy oil from fractured carbonate reservoirs.
Terraoil executed the heads of terms with the Albanian government for the Cakran-Mollaj, Gorisht and Amonicë fields in 2018, under comparable terms to Visoka. Current production totals approximately 1,100 bopd across all four oil fields.
Once the production sharing agreements for the new fields have been finalized and signed, Terraoil's combined 2P reserves for the four fields is estimated (by management) at 54 mmbbl. This could be massively augmented by material development upsides and acquisition opportunities. The Company aims to raise total production from 1,100 bopd to over 20,000 bopd. This will be implemented by investing in new technology and state-of-the-art processes which, given the historical underdevelopment of these assets, is expected to provide significant returns.
The wide-ranging and comprehensive experience of Terra Oil's management team will be utilised to ensure optimal production, operational and financial excellence. The team's experience includes heavy oil development through to production, success in managing operations with legacy Soviet technology and upgrading former Communist era management processes.
Terraoil's assets benefit from proximity to developed infrastructure. Being close to Fier, Albania's sixth most populous city, road infrastructure and neighbouring towns provide support for the Company's oilfields and employees. Terraoil currently transports all of its crude oil production to local refineries via truck. Albania has two refineries, Ballsh and Fier, with refining capacities of 6 million barrels and 3 million barrels, respectively. Crude oil can also be transported via truck to Albania's two oil export seaports, Porto Romano and Petrolifera Italo Albanese, where the oil can be exported to Italy or other refineries globally. The ports are suitable for international cargo sizes of 120,000 – 180,000 bbls of oil.