BP deal al­lows En­ergean to step up in­vest­ments

Kathimerini English - - Front Page -

BP Plc’s de­ci­sion to buy all of En­ergean Oil & Gas SA’s Aegean Sea pro­duc­tion will help Greece’s only oil pro­ducer at­tract in­ter­na­tional loans to spur in­vest­ment, Chief Ex­ec­u­tive Of­fi­cer Mathios Ri­gas said. “The deal with BP is a huge step to­ward putting Greek crude on the world oil map,” Ri­gas said in an in­ter­view in Athens. “With BP do­ing the mar­ket­ing, crude oil from the Pri­nos field will get rec­og­nized by, and ac­cess to, in­ter­na­tional mar­kets, and that will en­able us to ap­proach in­ter­na­tional banks for fi­nanc­ing.” On Jan­uary 13 En­ergean signed a six-year deal with BP Oil In­ter­na­tional val­ued at $500 mil­lion based on pro­jected oil pro­duc­tion at cur­rent prices. The Greek gov­ern­ment agreed on the same day to elim­i­nate a re­quire­ment that En­ergean sell out­put to lo­cal re­finer Hel­lenic Petroleum SA. En­ergean plans to in­vest 150 mil­lion eu­ros in 2014 and 2015, in part to tap the Ep­silon satel­lite field and lift daily pro­duc­tion at Pri­nos, with the aim of in­creas­ing to­tal pro­duc­tion in the Kavala Gulf to 5,000 bar­rels by the end of the year from 2,500 to­day. Proven re­cov­er­able re­serves, in­clud­ing cur­rent pro­duc­tion, stand at 24 mil­lion bar­rels, mean­ing the Pri­nos field still has 15 years of pro­duc­tion left, Ri­gas said.

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