Greece: Prinos rescue plan – state may take stake in Energean Oil & Gas

, SEE Energy News

Prinos offshore oil field, in Greece’s north, is currently producing smaller amounts of crude oil after a record level of 4,000 barrels per day in 2018. Last year, production at the oil field fell to 3,300 barrels per day.

One of the options for a rescue plan for Prinos offshore oil field, the Greece’s sole oil producing field, envisages that the state will take a small stake in the field’s operator Energean Oil & Gas in exchange to providing state guarantees for 75 million euros in financing needed by the company in 2020 and 2021 for investments included in its business plan.

The operation of Greece’s only oil field has been hit hard by low crude oil prices in the global market and Energean has been negotiating with Greek government the set of measures that will help mitigate the adverse conditions in the market. At the moment, Prinos rescue plan is being discussed with the European Commission, whose approval will be required.

Energean Oil & Gas recently published a business plan that also includes investments needed for Prinos’ rescue as well as the field’s sustainability over the next 15 years. The company invested some 460 million euros at Prinos during its 13 years of operations at the field, including 50 million euros between last September and May, to avoid the closure of offshore and related onshore facilities.