Energean Expands Greek Position

Energean has closed the purchase of a 50% stake in Greece's offshore Block 2 concession from France's Total, the Mediterranean-focused company said on January 7.

The producer now has a 75% position in the concession, having acquired a 25% interest through the takeover of Italian firm Edison's upstream business, completed last month. Greece's state-owned Hellenic Petroleum controls the remaining 25%. 

Energean said the deal, reached in March, provided it with new exploration opportunities in its core area, noting that there were limited remaining financial obligations at the concession. The company did not say how much it had paid for Total's stake. But it reported last year it would put up €500,000 ($550,000) to cover its share of minimum work costs. This work includes a 1,800-km 2D seismic campaign to de-risk potential drilling.

Energean is on track to continue its acquisition spree, having entered a deal in late December to buy private equity fund Kerogen's 30% shares in the Karish and Tanin gas leases off Israel for between $380mn and $405mn, giving it 100% ownership. The Karish project is Energean's flagship asset and is scheduled to flow its first gas in the fourth quarter.