The European Bank for Reconstruction and Development (EBRD) is
stepping up its support for privately owned Energean Oil & Gas with
an additional $20 million subordinated loan to the company, Energean
said in a press release on July 5.
“The loan will support the exploration of the Prinos Basin as well as
the firm’s new projects in Western Greece and underscores the EBRD’s
commitment to local businesses,” the only oil and gas producer in Greece
said.
Energean focuses on oil exploration and production in the southern
and eastern Mediterranean area and a diversified portfolio of
production, development and exploration assets in Greece and Egypt.
Apart from 30 million barrels of proven and probable (2P) oil
reserves that the firm has been developing in the Prinos oilfield,
Energean has 28 million barrels of contingent resources (2C) in the same
licence, where significant exploration potential was also identified in
a 2015 3D seismic campaign.
Moreover, a potential upside stems from the ongoing exploration
activity in the onshore Ioannina and the offshore Katakolon blocks in
Western Greece and the 2D seismic survey conducted in Egypt earlier this
year, the press release read.
Energean noted that the new financing follows a $75 million loan
agreed earlier this year which was related to the ongoing investment
programme for the development of the Prinos offshore oil-producing
field. The new EBRD loan will also support the introduction of new
technology, investments to avoid gas flaring and a number of resource
efficiency investments to optimise the supply and use of energy.
EBRD Managing Director and Energy and Natural Resources head Riccardo
Puliti and Energean’s Chairman and CEO Mathios Rigas signed the loan
contract in Athens.
EBRD Regional Director, Greece and Cyprus Sabina Dziurman hailed the
agreement that follows the first signing in March. “It [the signing]
underlines our confidence in Energean, a truly remarkable and impressive
Greek company with great potential, and our commitment to its further
success. This marks the beginning of a partnership on which will all be
able to build,” Dziurman said.
For his part, Rigas expressed his confidence that “Energean has the
vision to become the leading independent E&P company in the wider
Mediterranean and North Africa, and the EBRD’s new financing secures the
implementation of our ongoing exploration projects. Our 35-year
experience and know-how guarantee that all projects will be executed in
absolute safety for the local communities and the natural environment
and are set to lead to new hydrocarbon discoveries in the area. We are
proud of and grateful for the EBRD’s trust and support”.
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 the regional integration
of the Greek economy. The EBRD’s strategic plan for the period 2016-18
has three priorities: strengthening economic resilience, addressing
global challenges and supporting regional integration.
https://www.neweurope.eu/article/ebrd-backs-energeans-exploration-projects-20-mln-loan/