BSTDB Loan to Accelerate Development of Greece’s Hydrocarbons Sector
Press Release | 04-Jan-2022
Financing to support implementation of ongoing development of Energean’s Epsilon field in Prinos
The Black Sea Trade and Development Bank (BSTDB) is providing a loan of up to EUR 90.5 million to Energean Oil and Gas S.A. (Energean), the only Greek oil and gas producer. The proceeds will fund Energean’s investment plans - in particular the development of the Epsilon and Prinos fields - and will also support its working capital needs and the finalization of structural expenditures in the Prinos infrastructure complex.
The project will create jobs for suppliers of goods and services in the drilling and construction industries, as well as maintaining livelihoods in key Greek businesses amidst the on-going Covid-19 pandemic.
“Following the successful start of our cooperation in 2018, BSTDB’s continued support to Energean underlines our commitment to help Greece harness its indigenous natural resources for long-term economic growth, contribute to increased fiscal revenues and develop exports in the region. It will have an important development finance impact at a vital time when businesses try to recover from the global pandemic. Furthermore, while we are all committed to promoting renewable energy generation and cleaner energy sources, an essential element of this process is to ensure that the transition goes smoothly, and without disruptions that may undermine the shift to climate finance. Judicious use of fossil fuels, according to high standards of efficiency and pollution mitigation, remains a key part of ensuring the shift to greener energy generation,” said Dmitry Pankin, BSTDB President.
“Our new collaboration with BSTDB is crucial for the development of the Epsilon Oil Field that will extend the life of Greece’s sole hydrocarbon producing asset for several years. It also demonstrates the confidence the banking sector has to well structured and realistic development plans. Our goal is not only to further develop the hydrocarbon resources in the Gulf of Kavala, but also convert Prinos into a carbon neutral industrial complex that will be a landmark in the Mediterranean,» said Dr. Katerina Sardi, Energean Oil & Gas Managing Director and Country Manager in Greece.
Energean expects first oil from the Epsilon development in 1H 2023.
Energean Oil & Gas S.A. is a 100% subsidiary of Energean Plc, (LSE:ENOG TASE:אנאג), a London Premium Listed FTSE 250 listed E&P company with operations in eight countries across the Mediterranean and UK North Sea. Energean’s production comes mainly from the Abu Qir field in Egypt and fields in Southern Europe. The company’s flagship project is the 3.5 Tcf Karish, Karish North and Tanin development, offshore Israel, where it intends to use the newbuild fully-owned FPSO Energean Power, which will be the only FPSO in the Eastern Mediterranean, to produce first gas, commencing mid-2022. More info on: 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, Türkiye, 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, “A2” by Moody’s and “A+” by the Russian credit rating agency ACRA. For information on BSTDB, visit www.bstdb.org.
Phone: +30 2310 290533
Twitter: @BSTDB; @Haroulax