Bankers Petroleum Forced to Consider
Operational Impact
CALGARY, Nov. 30, 2015 /PRNewswire/ - The
Government of Albania (the
"Government") has not yet complied with the order issued by the
Tribunal constituted by the International Court of Arbitration of
the International Chamber of Commerce ("ICC Tribunal") to cease
enforcement of the tax assessment and revoke suspension of Bankers
Petroleum Ltd.'s ("Bankers" or the "Company") (TSX: BNK, AIM: BNK)
Albanian bank accounts. The ICC Tribunal issued the stop order on
November 21, which if complied with,
would allow Bankers to operate as usual while the ICC process and
third-party cost recovery audit run their course. At this
time, Bankers is now forced to consider a phasedown of its Albanian
operations since lack of access to the bank accounts will begin to
restrict its ability to pay local contractors, import goods and
export oil.
Late last week, the Company completed payment of the required
royalty tax on an export cargo ship, freeing additional storage
space at the port. However, this cargo volume was restricted
to 85% capacity as a result of funds limitation to pay royalty tax
in excess of the pre-existing credit balance. Without access to its
Albanian bank accounts, the Company's ability to pay the taxes on
subsequent shipments is compromised, which may force the Company to
curtail production towards the end of this week as available
storage reaches maximum capacity.
Through some communications with various Government
representatives, the Company received assurances that the
Government does intend to comply with the order. Additionally, the
Government has been engaged in the dispute resolution process as
demonstrated by its communications with the ICC Tribunal. It
is expected that the Government will comply with the stop order in
order to continue participation in the ICC Tribunal process.
Bankers remains hopeful that a solution to this situation can
be reached before further disruption to operations occurs.
Bankers has operated in Albania
for the past eleven years, investing over $1.4 billion dollars in the redevelopment and
environmental restoration of the country's largest oilfield. During
that time, the Company grew to be Albania's largest foreign direct investor and
largest tax payer, accounting for six percent of the country's
gross domestic product and paid over $550
million in taxes to the Country. The Company is one of the
largest employers, employing over 1,500 people both directly and
indirectly. Bankers is proud of its contribution to Albania, bringing the latest western
technology in oilfield development and the best international
business practices to the country. Bankers continues to monitor the
situation closely and will update the market with new developments
as they occur.
About Bankers Petroleum Ltd.
Bankers Petroleum Ltd. is a Canadian-based oil and gas
exploration and production company focused on developing large oil
and gas reserves. In Albania, Bankers operates and has the full
rights to develop the Patos-Marinza heavy oilfield, has a 100%
interest in the Kuçova oilfield, and a 100% interest in Exploration
Block "F". Bankers' shares are traded on the Toronto Stock
Exchange and the AIM Market in London,
England under the stock symbol BNK.
About the International Chamber of Commerce
(ICC)
The International Chamber of Commerce is the largest and most
diverse, business organization in the world with thousands of
member companies representing over 130 countries and a vast array
of business interests.
ICC is a leading provider of dispute resolution services for
individuals, businesses, states, state entities, and international
organizations seeking alternatives to court litigation.
SOURCE Bankers Petroleum Ltd.