Petrogress, Inc. Forms Cypriot SPV to Operate Limassol Port Facility

By: | at 09:31 AM | Ports & Terminals  

Petrogress Int’l LLC will deal directly with the Cyprus Ports Authority on Hellenic Cyprus ports

NEW YORK - Petrogress, Inc. (OTCMkts:PGAS) announced today that it has formed “PG Cypyard & Offshore Service Terminal Ltd. (“Cypyard”) (Org. No. 529036) through Petrogress Int’l, LLC, its wholly owned subsidiary. Cypyard was formed under the Cyprus Companies Law, Cap. 113, as a limited liability company; PIL is its only shareholder. Cypyard will conclude negotiations for an operations and management agreement covering ports in Hellenic Cyprus, including the Port of Limassol, directly with the Cyprus Ports Authority (www.cpa.gov.cy); Petrogress has withdrawn from its MOU with F&T Shipyards announced in June 2017.

Current plans include a long-term lease with renewal options covering all in-place port facilities, including floating dock and dry dock areas, with cranes and scaffolding, construction and repair workshops and storage, and complete on-site administrative and office space. Cypyard will negotiate and pay-off debt from a previous operator and agree to cover the costs of deferred maintenance and repairs along with designated improvements in exchange for lease rate concessions.

Per President Christos P. Traios, “We can make a better deal directly with the CPA for the facilities at Limassol. The facilities are in fairly good shape and won’t take much time or money to put right. In addition, we can add other port services agreements along the coast in Hellenic Cyprus if and when offshore services require. I think the opportunities there are great, and dealing directly with partners in government has numerous benefits.”

CYPRUS ROLE IN ENERGY

Cyprus can and should play a key role in the European Union’s energy security. Cyprus EEZ is contained within the Levantine Deep Marine Basin, with confirmed reserves of approximately 2,000 billion cubic meters of gas, and on-going exploration activities constantly adding to these reserves. Apart from its role as a producer, Cyprus is located at the cross-roads of sea lanes and probable pipeline routes connecting Europe and the Middle East, and should become a regional hub for E&P and transmission activities. Recent developments have attracted worldwide interest and significant investments from energy giants including Noble Energy, DELEK, TOTAL, Chevron, ExxonMobile, ENI and KOGAS. The New Port of Limassol is well-positioned to serve marine construction, transport and offshore service needs for exploration and production activities throughout the East Mediterranean.


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