The three scenarios for Greece’s natural gas deposits

The government is evaluating three scenarios for the resumption of investigations to locate possible gas deposits in Southwestern Greece, while at the same time investors who have leased offshore and onshore blocks say they are satisfied with the Prime Minister’s public support, expecting to see it in action. According to information from “NEA” newspaper, the first scenario wants the entry of new oil groups in existing concessions or the conclusion of new alliances between companies that already have leased rights to explore and exploit hydrocarbons.

Sources state that the goal is for the entry of a player or players in the sea blocks “Ionion” and “10 – Kyparissiakos Gulf” in which the stakeholder is Hellenic Petroleum. The Greek energy group, after the departure of the Spanish Repsol from the “Ionian”, is said to be looking for a partner in order to share the cost of exploration processes in these areas and to have the appropriate experience for the drilling that will be required in the future.

Sources of ta “NEA” newspaper note that the results of the seismic surveys conducted by HEL.PE. recently with the seismographic vessel “SW COOK” will be the lure to attract investors. In the case, of course, that these are encouraging in terms of the clear certification of the existence of promising targets with gas fields.

NEW CONCESSIONS.

The second scenario that the government is studying with the Hellenic Hydrocarbon Management Company (EDEY), as reported by government sources in “NEA”, is the possibility of granting new marine areas. A plan of the previous management of EDEY wanted the redesign of the blocks, which have not been granted, south of Crete but also of the sea area between the Southern Peloponnese and the north of Crete.

In the case of Southern Crete, things are more difficult, as there is the well-known involvement with the disputed Turkey-Libya EEZ that the two countries are trying to impose with the memorandum between them. In the south of Crete, the older design wanted the construction of two sea blocks, while it is worth noting that this area has been validated as Greek and not disputed with the older round of concessions in Maniati. The marine plots of the tender for the period 2014-2015 were published in the Official Gazette of the European Union.

The new concession of an area for research can be done through the “open door” process. That is, to appear an investor expressing interest in a specific area under concession and if no competitor is found then the result of the tender to be validated in his favor.

OBSTACLES.

The third scenario of the government is the removal of any administrative obstacles related to existing concessions in order to “run” the next works of exploitation of natural gas fields. One such indicative case is the “Katakolo” concession of Energean. The signing of the Strategic Environmental Impact Study has been pending for more than three years in order for the company to proceed with the production of a natural gas field of 1 billion cubic meters.

There is also a pending in the most promising in terms of the existence of remarkable natural gas deposits “West of Crete” and “Southwest of Crete” of TotalEnergies – ExxonMobil – EL.PE. Ecological organizations have appealed to the CoE against the Greek State for the Strategic Environmental Impact Study. The CoP has postponed for the fourth time the trial of the case.

However, the government has shown in the past, albeit not through drumbeats, that it has not abandoned the hydrocarbon case. Thus, it proceeded with the package of financial support of the only oil field in Greece, in Prinos, as well as in the tender through the HRADF for the underground natural gas storage of South Kavala.

THE INVESTORS.

In Greece today the companies that have legalized research and concession rights are Total, ExxonMobil, EL.PE. and Energean.

The first three have a common shape for the sea blocks “West of Crete” and “Southwest of Crete. Hellenic Petroleum is the only lessee of the maritime areas “10” and “Ionian” in the Ionian Sea. Energean is the sole lessee of the land blocks “Ioannina” and “Katakolo” and is an operator with 75% of the “block 2” in the Ionian Sea. The remaining 25% is owned by HEL.PE.

Speaking to “NEA”, investor executives positively assess the public support of the Prime Minister Kyriakos Mitsotakis in the exploration for the exploitation of natural gas fields: “The statement of the Prime Minister confirms the need for energy security supply of the country without surprises. “The wider environment has reconsidered its priorities and where once there were only priorities in matters of green transition, it has now been realized that the geopolitical factor should be included,” representatives of a large foreign oil company typically note in “NEA”. They add that “the choice of the Greek government takes into account the needs of the EU. The Greek prime minister always moves in consultation with the EU.

“Both hydrocarbon exploration and other initiatives, such as Egypt’s electricity interconnection with Greece and the FSRU in northern Greece, are initiatives that turn the country into a gateway to energy sources, securing Europe’s supply.”

At the forefront of investors’ initiatives, as is well known, HEL.PE. completed seismic surveys in the Ionian Sea offshore concessions. Energean is also preparing for similar work in “block 2”, while the same company is looking again at the gas targets in the land concession “Ioannina”.

The time of conducting the seismic surveys of TotalEnergies – ExxonMobil – EL.PE. in the two sea areas of Crete is also anticipated with interest.

Sources tell “NEA” that the legal dispute between ecological organizations – Greek State does not prevent investors from bringing a geophysical research vessel. Everything indicates that the seismic will take place next winter.