EBRD finances upgrade of Greece’s sole private oil producer Energean

By Axel  Reiserer

EBRD provides financing package for Greece’s sole oil producer Energean

Supporting company’s growth and energy efficiency

The European Bank for Reconstruction and Development (EBRD) and Energean Oil & Gas, the only oil and gas producer in Greece, signed today a US$ 75 million financing package to support the company’s ongoing US$ 200 million investment plan to develop the Prinos and Epsilon oil fields off northern Greece, and fund its energy efficiency investment programme. The Prinos and Epsilon oil field development project is the largest investment in the Greek upstream sector since the 1980s and includes drilling of 15 wells and installation of a satellite platform to the main Prinos offshore facilities.

Energean is a privately-owned independent exploration and production company with a regional focus on the southern and eastern Mediterranean area and a diversified portfolio of producing, development and exploration assets in Greece and Egypt. As of 31 December 2015, Energean’s reserves (2P) have been independently certified at 30 million barrels, with an additional 28 million barrels of Contingent Resources (2C) and  significant exploration potential that has been identified through the 3D seismic campaign shot by the Company in 2015 over the Prinos License area.

Oil is the dominant energy source in Greece, accounting for roughly 50 per cent of the total energy supply. Due to decades of underinvestment, local production remains far behind its potential.

On the occasion of the loan signing, Eric Rasmussen, EBRD Director, Natural Resources, said: “We are pleased to sign this financial package with Energean today as it is our aim to support Greek companies in a competitive market. Strengthening local business so that they can grow and prosper is key for the recovery of the country’s economy. The EBRD is highly committed to this task and ready to extend its support through investment and policy dialogue wherever it can make a difference.”

Mathios Rigas, President and CEO of Energean, added:  “EBRD’s financing is a milestone for Energean.  Prinos is a 300 million barrels mature oil field with a relatively low recovery factor achieved to-date and the new investment programme will allow us to maximize the field’s potential and increase production to above 10,000 bbls/d utilizing the existing and new infrastructure. Energean’s shareholders and its 400 employees remain dedicated to developing the reserves in Prinos, exploring Greece’s hydrocarbon potential, operating with total protection of the environment and respect to the local communities, and becoming the leading independent in the East Med upstream sector. We thank the EBRD for their support and trust.”

The EBRD started investing in Greece on a temporary basis in 2015 to support the country’s economic recovery. In addition to strengthening the financial sector, the Bank’s other priorities are support for privatisation, infrastructure development and regional integration of the Greek economy.