Petroleum refining and trading company Motor Oil Hellas will begin pursuing hydrocarbon exploration and development activities, the company has decided at a general shareholders meeting.
Motor Oil will establish a Cyprus-based company for the hydrocarbon exploration activity and will hold a 65 percent stake in the venture, while the other 35 percent will be held by Egypt-based Vegas Oil, wholly owned by Motor Oil’s Vardinogiannis family.
“Current conditions are considered ideal by many as a result of the extremely low oil prices. Vegas Oil, to participate in the new venture, possesses knowhow in this line of work,” noted Petros Tzannetakis, Motor Oil’s Deputy Managing Director and Chief Financial Officer.
Tzannetakis said that 2015 ranks as the best ever year in Motor Oil’s corporate history, adding that its current net debt figure is at a ten-year low, despite the investments carried out during this period.
Responding to a question, Tzannetakis admitted a capital surplus exists, adding that part of this amount will be used to lessen the company’s debt.