BankersPetroleum

completed

The Project consists of support to Bankers’ implementation of the re-development of the 70 km² Patos-Marinza heavy oil field and the initial evaluation of potential development of the Kucova oil field. Starting in 2008 the plan for Patos-Marinza includes: (i) expanded re-activation of existing Albpetrol wells and new vertical and horizontal infill drilling aimed at current proved reserves, and (ii) parallel application of additional strategies, including waterflood development and a pilot cyclic steam stimulation program to further increase oil recovery. Bankers currently sells about half of its oil production from Patos-Marinza to ARMO, the Albanian Refining and Marketing company, including to the Ballsh and Fier refineries, and the remaining production is exported to two Italian refineries by ship from the port of Vlore. Since the 1930’s the Patos-Marinza field was operated by Albpetrol, the Albanian national oil company, and its predecessor entities. Albpetrol continue to operate in the field side by side with Bankers today. There are approximately 2,600 existing wells and under the approved development plan Bankers has been taking over existing wells in the field step by step, starting in July 2004 when production was approximately 600 bpd from 28 producing wells. At the time of the IFC/EBRD appraisal in June 2008, Bankers had taken over 360 wells from Albpetrol, re-activating approximately 200 of them. In addition, Bankers has installed centralized storage and treatment facilities, and increased production to over 7,000 bpd. Meanwhile, Albpetrol continues to work in the field and is currently operating about 200 wells on their own producing about 750 bopd from Patos-Marinza. As Bankers progressively takes over the field, Albpetrol operations are gradually being phased out. Ultimately, Bankers will be the sole operator at Patos-Marinza.The Patos-Marinza oilfield is heavily polluted due to limited control and treatment of wastes and emissions and considerable leakage and release of oil to the environment as a result of many years of field mismanagement and poor operational practices by Albpetrol. Additional pollution of the area results from the activities at the nearby ARMO refineries that use old and obsolete technology in their operations that are ineffectively managed and poorly maintained. The field is classified as one of Albania’s environmental “hotspots” by the UNDP. Under the Petroleum Agreement, Bankers is not liable for this legacy pollution and is only responsible for its direct field operations. Bankers has, however, indicated its interest in supporting plans that may be developed by all stakeholders to undertake government-led wider environmental remediation activities of areas affected by Albpetrol’s historical operations in the field. Bankers’ are at the early stages of evaluation of the Kucova oil field. The Kucova field is located approximately 20 km to the east of Patos-Marinza and is believed to be geologically similar to Patos-Marinza. Over 1,700 wells have been drilled in the field by Albpetrol and current production is averaging only 400 bpd. Both oil fields have villages and small towns situated within and immediately outside their perimeters and a significant number of active and inactive Albpetrol wells are located in the immediate vicinity of people’s homes. In Patos-Marinza an estimated 1,500 people live within 100 m of an oil well and some areas of the Kucova field are more densely settled.