BP and Energean Extend Long-Term Offtake Agreement for the Prinos Field to November 2025
Wednesday 14 February 2018
Energean Oil & Gas announced the extension of the Prinos long-term offtake agreement with BP Oil International Limited until 1 November 2025.
All of the Group’s production of crude oil from the Prinos basin is currently sold to BP under the offtake agreement, which was originally signed in 2013 and covered the period until 31 July 2021.
The extension of this agreement secures Energean’s sales of crude oil from the Prinos basin for a further four years, helping safeguard the Group’s cash flow.
Energean is implementing a new investment programme to further increase production from the Prinos and Prinos North oil fields, as well as to develop the Epsilon oil field, which is also a part of the Prinos licence. The new programme, to be financed by a $180 million reserve-based lending (“RBL”) facility, consists of drilling of up to 25 wells and the installation of two new platforms up to 2021. This will be executed by both the Energean Force, Energean’s owned and operated offshore drilling rig, and the jack-up GSP Jupiter that will drill the first 3 Epsilon wells.