The Black Sea Trade and Development Bank (BSTDB) is providing a loan of up to €90.5 million to Energean Oil and Gas, the Greek oil and gas producer said on January 4. According to Energean, the proceeds will fund Energean’s investment plans – in particular the development of the Epsilon and Prinos fields – and will also support its working capital needs and the finalization of structural expenditures in the Prinos infrastructure complex.
Energean said the project will create jobs for suppliers of goods and services in the drilling and construction industries, as well as maintaining livelihoods in key Greek businesses amidst the on-going Covid-19 pandemic.
“Following the successful start of our cooperation in 2018, BSTDB’s continued support to Energean underlines our commitment to help Greece harness its indigenous natural resources for long-term economic growth, contribute to increased fiscal revenues and develop exports in the region,” BSTDB President Dmitry Pankin said, adding that it will have an important development finance impact at a vital time when businesses try to recover from the global pandemic. “Furthermore, while we are all committed to promoting renewable energy generation and cleaner energy sources, an essential element of this process is to ensure that the transition goes smoothly, and without disruptions that may undermine the shift to climate finance. Judicious use of fossil fuels, according to high standards of efficiency and pollution mitigation, remains a key part of ensuring the shift to greener energy generation,” Pankin said.
Energean Oil & Gas Managing Director and Country Manager in Greece Katerina Sardi said the company’s new collaboration with the Black Sea Trade and Development Bank is crucial for the development of the Epsilon Oil Field that will extend the life of Greece’s sole hydrocarbon producing asset for several years. “It also demonstrates the confidence the banking sector has to well structured and realistic development plans. Our goal is not only to further develop the hydrocarbon resources in the Gulf of Kavala, but also convert Prinos into a carbon neutral industrial complex that will be a landmark in the Mediterranean”, Sardi said.
Energean expects first oil from the Epsilon development in the first half of 2023.
