Energean Oil & Gas, backed by a financing agreement reached with the European Bank for Reconstruction and Development (EBRD), is planning to submit an investment plan to the energy ministry within the next few days for development of its “Epsilon” offshore oil field, a source of considerable oil-producing potential, in the Gulf of Kavala.
The move to be taken by Energean Oil & Gas is intended to initiate permit issuance procedures for exploration and exploitation of the oil field in northern Greece, as the project will require construction of a new platform, the first to be developed in Greece since 1977.
The investment at the “Epsilon” oil field, which holds half of the 30 million barrels of proven reserves in the Gulf of Kavala, according to research conducted by independent oil and gas reservoir evaluation firm ERC Equipose, is worth 110 million dollars.
Approximately 50 million dollars will be needed to cover the cost of installing the offshore rig at “Epsilon” and pipelines for connection with Energean’s offshore Prinos facility, while roughly 60 million dollars will cover seven scheduled drilling projects.
According to Energean’s schedule, the “Epsilon” oil field may begin producing in the third quarter of 2017.
Energean is currently conducting the most extensive research program in the Gulf of Kavala since 1981, when Prinos began producing. The company has planned to perform a total of 15 drilling projects in the area, seven of which will be staged at Prinos.
Energean expects its production to exceed 5,000 bpd (barrels per day) once these seven drilling efforts have been conducted.
As for the other eight drilling projects, seven will be conducted at the “Epsilon” oil and at Prinos North.
Once all 15 drilling projects have been completed by Energean’s company-owned drilling barge, it is estimated that the project’s total production may reach 10,000 bpd.
Energean also plans to submit a development plan for its Katakolo offshore license in western Greece this coming summer. The company will offer a presentation of the project today, at a one-day conference in Pirgos, organized by regional chambers of commerce and industry. Officials believe the Katakolo licence can begin producing by next winter.
It was announced yesterday that the EBRD will extend financing worth 75 million dollars to Energean as support for the company’s activities in the Gulf of Kavala, an investment budgeted at 200 million dollars in total.
The EBRD loan to Energean is the first to be extended by the bank for investments concerning Greece’s energy sector, which indicates its interest to enter the field. Energean’s extensive research and resulting data, promising both proven and probable reserves, was a key factor in EBRD’s decision to approve the loan.