Lundin Oil AB says force majeure has been lifted on two of the three blocks in Albania in which it is a partner. Under an agreement with the Albanian government, Blocks 2 and 3 have been given the green light, while Block A will remain in force majeure.
The blocks were awarded in June 1998 but have been in force majeure since December 1998.
"Preparations are under way to commence drilling operations in the fourth quarter of 2000 on the Shpiragu prospect, formerly known as Sqepuri, in Block 2, which is a large, subthrust structural feature with over 3,000 m of vertical closure," said Lundin. The partners have identified several additional "large" leads on existing seismic and landsat images, says the firm.
"The blocks are located within and on trend with the previous petroleum system in Albania, where an estimated 1 billion bbl of recoverable reserves have been discovered," said Lundin. "Most of the existing oil fields in Albania are located within the boundaries of Blocks 2 and 3. The current producing area of these fields has been excluded from the permits; however, rights to deeper exploration objectives below these fields are included."
Partners in the project are a unit of Oxxidental International Exploration & Production Co. (operator, 50%), Forest Oil Albania (30%), and Lundin Oil Albania (20%).