EU approves €100m aid to support Greek oil and gas firm affected by pandemic

Energean generates most of its revenues from the sale of crude oil and has suffered severe losses due to the collapse of oil prices in the wake of the pandemic

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The European Commission has approved two measures that are expected to mobilise a total of €100 million (£86m) to support Greek oil and gas company Energean affected by the coronavirus outbreak.

Energean, which is operating the only oil extraction site in Greece under a concession contract, generates most of its revenues from the sale of crude oil and has suffered severe losses due to the collapse of oil prices in the wake of the pandemic.

The company is currently facing difficulties in accessing financing on the market and therefore, the aid measures aim at addressing these liquidity needs.

The support will take the form of a public guarantee on a commercial loan of around €90.5 million (£78m) to be contracted by Energean and a sub-ordinated loan amounting to €9.5 million (£8.2m) by the Greek state.

The Commission said the support will be granted no later than 31st December 2021, will be used to cover Energean’s investment and working capital needs during the next 12 months and will have a duration of a maximum eight years.

It concluded the measures are “necessary, appropriate and proportionate to remedy a serious disturbance” in the economy of a member state.

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