ROMANIA'S FUEL CRISIS WORSENS; ALBANIA SEEKS SOVIET OIL

Nov. 5, 1990
Pravda reports Romania has disclosed more specific details of its worsening fuel crisis. And a surprising initiative from reclusive Albania suggests improved prospects for imports of Soviet oil and western joint ventures, reports Rabochaya Tribune. Bucharest reports that in the first 9 months of 1990, oil production fell 12%, natural gas flow by about 20%, and coal extraction by 36%. Romanian officials say the nation's economy has been in a tailspin since the start of the year, following

Pravda reports Romania has disclosed more specific details of its worsening fuel crisis.

And a surprising initiative from reclusive Albania suggests improved prospects for imports of Soviet oil and western joint ventures, reports Rabochaya Tribune.

ROMANIA'S WOES

Bucharest reports that in the first 9 months of 1990, oil production fell 12%, natural gas flow by about 20%, and coal extraction by 36%.

Romanian officials say the nation's economy has been in a tailspin since the start of the year, following overthrow of the Ceausescu dictatorship.

While precise figures are not provided, it's believed Romanian crude production has dropped to less than 160,000 b/d from an estimated 180,000 b/d in 1989. Output is now the lowest since the 1950s.

Romanian oil production peaked at about 294,000 b/d in 1976 and at the time was projected to climb to more 300,000 b/d.

The U.S. Central Intelligence Agency estimates Romania's 1989 natural gas production at 41.2 billion cu m. A 20% decline would reduce flow to an annual rate of less than 33 billion cu m, pushing gas output below the 1976 level.

Romania expects to receive only 68,000 b/d of crude from the Soviet Union this year. That compares with 100,000 b/d of crude that Romania was slated to import from the U.S.S.R. under a long term contract.

Moscow trimmed crude deliveries by 32,000 b/d because Bucharest could not fulfill its agreement on food exports to the U.S.S.R.

Last year, Romania imported 78,820 b/d of crude and about 7.43 billion cu m of gas from the U.S.S.R.

Romania recently sent an official delegation to Moscow in an effort to increase Soviet fuel deliveries. The Bucharest press reported the talks were "difficult."

ALBANIA'S INITIATIVE

Albania is negotiating with the U.S.S.R. to import Soviet crude and refined products.

An official delegation from Moscow's Ministry for Foreign Economic Relations was expected to begin talks in Tirana at the end of October.

The U.S.S.R. broke off economic relations with Albania in 1960. China abruptly stopped economic aid and withdrew its technical advisers in 1978.

Both nations had provided substantial assistance to Albania's oil industry.

Indications that Albania wants to buy Soviet oil are surprising, since the long reclusive Adriatic nation was believed to be self-sufficient in petroleum.

One Soviet study described Albania as the most promising nation per square mile of territory in eastern Europe for finding petroleum reserves. Albania has not officially disclosed oil production data for many years.

A Soviet report put Albania's 1970 crude production at 28,000 b/d. But some western sources have estimated that Albania in the early 1980s was producing as much as 80,000 bo/d.

U.S. government foreign economic researchers have insisted Albania produced less than 30,000 bo/d in the 1980s.

Recent reports say Albania has discussed offshore Adriatic oil exploration with Italian and German interests.

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