Summary

The Agreement for Determination By Expert of Certain Disputes Related to Cost Recovery (Patos-Marinza Oilfield) dated February 24, 2016
between
The Ministry of Energy and Industry of Albania, Represented by The National Agency of Natural Resources
and
Bankers Petroleum Albania Ltd

In accordance with the mandate given to the Expert Panel in the Terms of Reference, the Expert Panel evaluated and determined whether the disputed costs as presented by the Parties: (i) "qualify as recoverable Petroleum Costs under the terms of the License Agreement and, to the extent applicable, the Petroleum Agreement and Accounting Procedure," and (ii) "were incurred reasonably and in conformity with generally accepted practices in the international petroleum industry." Our work was based on the submissions of the Parties, documents produced and the results of the Hearing conducted with the Parties.

In evaluating whether a cost qualified as a "recoverable Petroleum Cost," the Expert Panel first assessed if the disputed cost satisfied the requirements to be considered a Petroleum Cost. If so, the Expert Panel then assessed the recoverability of such Petroleum Cost based on the License Agreement and the Petroleum Agreement (the "Agreements"). Once the Expert Panel determined that a cost qualified as a recoverable Petroleum Cost, the Expert Panel assessed whether the Petroleum Cost was incurred reasonably and was "in conformity with generally accepted practices in the international petroleum industry."

...