A Joint Venture, consisting of OMV (51%, operator) and Hellenic Petroleum (49%), has been granted a PSC (Production Sharing Contract) for Exploration and Production of Hydrocarbons in Albania (Block 4&5) by the Albanian Government in 2000.
Following extended geological and geophysical exploration work, the JV decided to drill a well (KANINA-1) in a geological structure with possible oil and gas content. The well, spudded March 2004, has reached at depth 5.362 m encountering hydrocarbon shows in limestones. Well tests are scheduled to start late on Saturday 12th of February 2005, and are expected to last up to two weeks, the results of which will be evaluated in the weeks to come.
According to the PSC the JV, depending on the results of the exploration work, has the option to decide to proceed further, by carrying out additional evaluation work for a period of 12 months following the completion of the well.