Greek independent producer Energean Oil & Gas said Monday it has extended the Prinos long-term offtake agreement with BP Oil International Ltd. to Nov. 1, 2025.
All of the company’s crude oil production from the Prinos Basin offshore of northern Greece is currently sold to BP under the offtake pact, which was originally signed in 2013 and covered the period to July 31, 2021, Kallanish Energy learns.
The extension of the agreement secures Energean’s sales of crude from the basin for four additional years, helping safeguard the group’s cash flow, according to the company.
“We are very pleased to extend our agreement with BP, a relationship that started in April 2013, and is now developing into a strategic partnership that secures cash flow from our production in Greece,” said Mathios Rigas, CEO of Energean.
“Increasing our production from Greece, the $1.6 billion CAPEX Phase 1 development of the Karish and Tanin gas fields offshore Israel, and the exploration of the Eastern Mediterranean remain our focus and we believe the extended BP offtake agreement further strengthens our position to deliver maximum value from the Prinos license,” Rigas added.
Energean is implementing a new drilling program to further increase production from the Prinos and Prinos North oilfields, as well as to develop the Epsilon oilfield, which is also a part of the Prinos license offshore northern Greece.
The new program, to be financed by a $180 million reserve-based lending (“RBL”) facility, consists of drilling of up to 25 wells and the installation of two new drilling platforms by 2021.