Shell exits Albania, government invites SOCAR to step in

Albania’s Ministry of Infrastructure and Energy has invited Azerbaijan’s state oil company SOCAR to consider participating in onshore oil extraction projects in the country, local media reported on Thursday.

Dutch energy giant Shell, which discovered oil near Mount Shpirag in 2019 and drilled five wells in Block 4 in southern Albania, is expected to cease operations in the country in 2025 after reporting €1.1 billion in losses. Albanian officials believe SOCAR could acquire Shell’s assets, though oil production is currently not among SOCAR’s investment priorities, according to a source.

Since April 2025, SOCAR has been implementing the "Nur" gasification project in the Albanian city of Korça, funded by Azerbaijan at a cost of approximately €20 million. The project is scheduled for completion in 2026, after which SOCAR may expand gasification to the cities of Pogradec and Ersekë.

Albania aims to develop a robust gas infrastructure by 2030. For now, the country’s energy sector relies on coal, hydropower, and solar generation.

Korça is located near infrastructure connected to the Trans-Adriatic Pipeline (TAP), the European leg of the Southern Gas Corridor that has been operational since 2020.

SOCAR has also previously explored the feasibility of building an LNG terminal in Vlorë and connecting it to TAP in Fier.

Albania hopes to receive up to 700 million cubic meters of gas annually from an expanded Southern Gas Corridor, with a final decision expected in 2026.