The oil-price plunge in international markets has placed under pressure Greece’s only producing oil field, Epsilon, an old, high-cost unit operated by Energean Oil & Gas at an estimated 20 dollars per barrel.
Energean has made a considerable, long-running effort to keep Greece’s sole oil field alive through major investment, required to achieve acceptable production levels. However, production at this oil field is unprofitable during times of deflated oil prices, as is the case at present.
Major international credit institutions are nowadays offering far less financial support to oil-producing ventures as a result of negative conditions affecting the upstream sector. Widespread climate-change policies have not helped, while the situation has now been made worse by the ongoing oil-price crisis.
Energean’s Prinos offshore oil field, in Greece’s north, is currently producing smaller amounts after hitting 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. The current year is expected to be even more challenging, pundits have noted.
Energean is now placing greater emphasis on fully developing its neighboring Epsilon oil field. The company is awaiting the construction of a new platform, a project undertaken by a consortium of Romanian companies, so that production at Epsilon may commence in approximately one year.