Upstream company Energean’s Prinos field concession, south of Kavala in northern Greece, is projected to incur yet another increase in losses this year, in excess of 32 million euros, according to a 2021 budget submitted by the company to EDEY, the Greek Hydrocarbon Management Company.
These losses, which do not include debt payments for investments made in previous years, will add to accumulated losses of 200 million euros incurred by the company through its operations at Prinos, Greece’s only active hydrocarbon field.
Production at the Prinos field is expected to narrowly exceed a total of 500,000 barrels this year, according to the company budget’s projections.
The budget’s projections were based on the assumptions of an average Brent index oil price of 60 dollars per barrel, reduced revenues of between 7 and 8 dollars per barrel at the Prinos field as a result of the inferior quality of oil produced, as well as a euro-dollar exchange rate of 1.20.
Based on these figures, the Prinos field’s revenue for 2021 is projected to reach 22.3 million euros, with expenses reaching 54.3 million euros.
Despite the negative results amid an unfavorable climate, Energean plans to recommence investments at the Gulf of Kavala’s “Epsilon” field with an amount of 13 million euros, part of total investments worth 23 million euros.
Prinos is currently producing from 14 wells, two out of which are horizontal at the North Prinos and Epsilon Fields.
The horizontal drills at the Epsilon field are expected to begin producing 15 months after the recommencement of investments.
These investments will include the completion of a new platform at the Lamda deposit, to emerge as the first new platform in Greece since 1977. Prinos began producing 40 years ago.