|Dorina Asllani Ndreka
By adopting Law No. 6/2017, the Albanian Parliament amended
the 1993 Law on Hydrocarbons (Exploration and Production).
These latest changes are intended to make the law more easily
applicable and to bring it closer to the acquis of the EU. The
amendments also focus on safeguarding these important public
Law No. 6/2017, dated February 2 2017, includes several
definitions that were not originally included in the 1993 law
and its previous amendments. Some of the most interesting ones
include the definition of the license agreement, which is the
authorisation provided by the ministry responsible for
exploration, development and the production of hydrocarbons in
the contract area. This license includes the possibility to
transfer the rights wholly or partially to a local or foreign
legal person, or to an international financial institution.
However, if it deems it necessary for matters of national
security, the ministry may reject the transfer of the
hydrocarbon agreement quotas.
It is worth noting that a hydrocarbon agreement may include
specific clauses about the stability of the tax regime. A
similar provision existed in the previous version of the law,
but the new one provides the following conditions:
- These clauses cannot exceed a term of 12
years from the date of the production's commencement;
- The regime of stability excludes the laws
and regulations related to national security, labour
relations, protection of the nature and the environment,
protection of human health and international treaties;
- The tax regime's stability provision does
not affect the calculation and payment of applicable taxes by
contractors under the tax legislation in force.
The stable tax regime, which is provided for under the new
Law on Hydrocarbons, is defined to be the current one,
including the tax rates, applicable forms, terms of payments
and all other tax aspects as laid out in the current tax
legislation in force.
The new law is effective from March 7 2017, but it will only
be applied to new hydrocarbon agreements and will exclude those
already signed and those that had started the process of
negotiation before that date.
Dorina Asllani Ndreka (email@example.com)
Tel: +355 (0) 42 248 548