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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: “With this agreement, the Greek State has eliminated a significant impediment to business activity. Local production is now entering the global oil map. The combination of Greek and international investors, with the experience of the local scientific and labour force has turned into a success story an activity that didn’t exist until a few years ago. 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”. Energean Oil & Gas, press release |
Six year offtake agreement between BP and Energean Oil & Gas