Prinos operational costs ‘can be covered, even with lower oil prices’

Energean Oil & Gas can cover operational costs at its Prinos hydrocarbon venture in northern Greece, even with lower oil prices, Mathios Rigas, the company’s chief executive, told an energy conference in Athens today.

The Prinos deposit is estimated to have a further fifteen to twenty years of production potential remaining, while the company objective is to boost production at this deposit to 10,000 barrels per day, noted Rigas, who delivered a speech at a conference organized by TEE, the Technical Chamber of Greece, titled “Energy Market: Unlocking Greece’s Economic Potential.”

Commenting on the company’s plans for a license in Katakolo, western Peloponnese, Rigas noted that Energean is currently conducting a sustainability study for this environmentally sensitive area. Environmental factors stand as the biggest obstacle for hydrocarbon investments in Greece, Rigas stressed, adding that potential investors need to keep this in mind.

Sharing thoughts on the major fall of international oil prices, Rigas noted that a total of 380 billion dollars of investments have been cancelled and numerous jobs shed, adding that he expects production levels to be impacted.

Stable business conditions are necessary if foreign investors are to be drawn to Greece’s hydrocarbon sector, “not new conditions every six months,” Rigas stressed, responding to a related question.

“Greece remains unexplored but we can attract foreign investors. Support is needed from the government and banking sector,” Rigas said. “Greece has hydrocarbon potential.”