Press Releases

BSTDB Financing to Develop Greece’s Energy Potential


01-Feb-2018

The Black Sea Trade and Development Bank (BSTDB) will provide a loan of up to USD 52.5 million to Energean Oil & Gas, a Greek exploration and production company to accelerate the development of Greece’s hydrocarbons sector.

 

The 5½-year facility will support the company’s existing oil development programme to access additional oil reserves in the Prinos, Prinos North and Epsilon operating oil fields, located offshore Greece (Prinos-Kavala Basin). In particular, the financing will cover capital expenditures for drilling and additional well platforms and consolidation of the company’s existing debt.

 

The loan is part of a senior reserves-based facility amounting to USD 180 million, jointly provided by BSTDB, the European Bank for Reconstruction and Development (EBRD) and a Romanian Club facility, arranged by the Export-Import Bank of Romania.

 

Ihsan Ugur Delikanli, BSTDB President, commented: “We are happy to contribute to this operation which will bring substantial development impact to the Greek economy, including export promotion, job creation and increased revenues for the state budget. It is particularly fulfilling for BSTDB to support businesses in our host country especially as this is our first financing to a drilling company.

 

I am pleased to observe the strengthening of cooperation with EBRD and the engagement of Export-Import Bank of Romania in a deal that will increase Greece's energy efficiency."

 

Energean Oil & Gas CEO, Mathios Rigas, commented: “Energean is delighted to receive the support of BSTDB, along with the EBRD and the Export Import Bank of Romania, for its plans to further develop Greece’s offshore oil and gas resources. We are committed to increasing our investment in the Prinos-Kavala Basin, where we already have a strong production track record, and are now focusing on developing the Epsilon Oil Field, which is part of the Prinos Licence.

 

Our loan agreement with BSTDB is further evidence of the trust placed in Energean by the international banking sector and demonstrates confidence in the Company’s ability to consistently increase value for its shareholders and contribute to the Greek economy.

 

The low-risk development programme underway at Prinos, which is backed by a long-term offtake agreement with BP, is part of Energean’s wider development plans in the Eastern Mediterranean. This includes the Company’s flagship USD 1.6 billion development project of the Karish field, offshore Israel, as well as the development and exploration programmes in Western Greece and the Adriatic. Energean is making strong progress on all fronts and moving towards fulfilling its main goal of becoming a leading independent E&P company in the East Mediterranean region.”

 

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Energean is a leading independent E&P company focused on the Eastern Mediterranean region, where it operates in offshore Israel, Greece, the Adriatic and Egypt. It is the only oil and gas producer in Greece and it and its predecessors have a combined 36-year history of operating offshore and onshore assets in environmentally sensitive areas. Energean employs 389 oil and gas professionals in total. The Group has 2P reserves of 50.0 MMbbls of oil and 6 Bcf of gas and 2C resources of 22.9 MMbbls of oil and 11.5 Bcf of gas at its Prinos Basin and Katakolo fields, and its associate, Energean Israel, has 2C resources of 32.8 MMbbls of liquids and 2.4 Tcf of gas. The Company received approval in August 2017 from the Israeli Government of the FDP for the Karish and Tanin fields, aiming to use an FPSO and produce first gas in 2021. The Company also has significant exploration potential in the other licences held in offshore Israel, Western Greece, and Montenegro. www.energean.com

 

The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is EUR 3.45 billion. BSTDB is rated long-term “A-” by Standard and Poor’s and “A2” by Moody’s. For information on BSTDB, visit www.bstdb.org.

 

Press contact:

Haroula Christodoulou

Phone: +30 2310 290533

E-mail: cchristodoulou@bstdb.org