BP Buys Greek Oil Reserves


The agreement for the purchase of the Prinos oil field reserves was signed on Monday afternoon at the Greek Ministry of Environment, Energy and Climate Change, between Energean Oil, the Greek company exploiting the reserves and British multinational BP Oil International.

The $500 million price tag relates to oil production estimates for the Prinos field over the 6 year duration of the contract at current oil prices. It also marks the return of BP to the Greek energy market, which the British company abandoned in 2009, selling its domestic assets to Hellenic Petroleum S.A.

This return to the Greek market is seen by observers as important, particularly in terms of developments expected over the next few months regarding other potential reserves in Greek controlled waters.

The agreement should also result in new wells in the region and the doubling of oil production to 5,000 barrels per day.

According to the Ministry, the agreement will be of significant economic benefit to Greece and demonstrates BP’s confidence in the country’s energy market.

“Today’s development is proof that the Greek economy starts a new chapter. The presence of BP in Prinos ensures tomorrow’s oil production and the jobs associated with it, while sending to global markets a message of confidence to the Greek economy and Greek companies,” stated Greek Energy Minister Yiannis Maniatis.

Energean Oil’s CEO Mathios Rigas underlined that “the partnership with an international business group such as BP enables us to reboot our investment program totaling €150 million and involves three new drilling projects for 2014.”

The Prinos oil field is located in the northern Aegean Sea, between the Greek island of Thasos and the city of Kavala.