BP, Energean ink 6 year offtake agreement for Greece's Prinos oil production

1/15/2014

BP, Energean ink six-year offtake agreement for Greece's Prinos oil production

ATHENS, Greece -- The Minister of Environment, Energy and Climate Change, Mr. Yannis Maniatis, and the Chairman and CEO of Energean Oil & Gas, Mr. Mathios Rigas, signed on Monday the 2nd amendment to the Prinos Concession agreement, which allows Energean Oil & Gas to sell its production from Prinos to an offtaker group of its choice, while until now the company had been obliged to sell to the local refinery.

Following the amendment, Energean Oil & Gas signed a six-year offtake agreement with BP Oil International, which from now on will purchase the entire oil production from the Prinos field in Northern Greece. Estimates based on production projections and current oil prices value the agreement at 500 million euros.

On behalf of BP, the agreement was signed by Carol Howle, Head of Supply and Trading Global Oil Europe and Finance. His Excellency, the British ambassador in Athens Mr. John Kittmer, honoured the ceremony with his presence.

Commenting on the agreement, Mr. Mathios Rigas stated: “During the last 6 years Energean Oil & Gas, the sole oil producer in Greece, has invested more than 180 million Euros in the Kavala region. It has accomplished the revival of the Prinos field and kept Greece on the list of oil producing countries. The agreement with BP Oil International offers Energean Oil & Gas the opportunity to continue with a major investment program which consists of drilling three wells in Prinos and North Prinos. Moreover, a new program relating to the development of the Epsilon oil field, southeast of Kavala, will be initiated, including the drilling of another two wells. The total investments of Energean Oil & Gas during 2014-2015 are expected to reach 150 million euros, aiming to double the total production in the Kavala Gulf from the current levels of 2.500 oil barrels daily”.

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