Greece Moves to the Second Stage of Hydrocarbon Exploration in the Ionian Sea
A consortium of companies including Energean, ExxonMobil, and HELLENiQ ENERGY has notified the regulator of its intention to continue work under the Block 2 concession.
This was reported by the Hellenic Hydrocarbons and Energy Resources Management Company (HEREMA).
During the first phase of the project, exploration activities were carried out, including seismic surveys, following which the subsoil area was recognized as promising. The transition to the second stage means the start of more in-depth study of reserves, including through the drilling of an exploration well. Block 2 is located in the Ionian Sea and is characterized by complex geological conditions.
“The transition of Block 2 to the second phase of exploration, which also includes the first offshore exploration drilling in 40 years, marks a very important step forward for the country’s oil sector. This reflects Greece’s geological and financial potential, as well as the confidence of leading investors. The fact that these exploration works are planned at a depth of 900 metres and at a distance of more than 55 km from the shore also demonstrates the progress achieved in domestic offshore exploration. At the same time, this next phase is expected to further expand geological knowledge of the subsoil and make a valuable contribution to understanding Greece’s overall hydrocarbon potential beyond the narrow boundaries of the specific concession area,” said HEREMA CEO A. Stefatatos.
The project is being implemented under a concession agreement signed in 2017. In recent years, the composition of participants has been revised, and new partners have joined the project. As noted by HEREMA, the start of drilling operations will be an important milestone for the development of the country’s oil and gas industry and may contribute to reducing Greece’s dependence on energy imports.
In 2022, the European Union intensified the search for alternative energy sources, prompting Greece to focus on its own hydrocarbon reserves. Studying national potential allows the authorities to plan a reduction in the country’s dependence on oil and gas imports, including long-term supplies of Azerbaijani gas.
In November 2022, Prime Minister K. Mitsotakis emphasized that the development of domestic gas fields would enhance not only the country’s energy security but also that of Europe as a whole. In the autumn of the same year, the American company ExxonMobil began seismic surveys offshore Greece to assess natural gas production potential.
Interest from foreign companies in exploration activities in the Eastern Mediterranean is linked to the discovery of major fields in the region. Among them are the Zohr field in Egypt, Leviathan in Israel, as well as Aphrodite and Calypso in the waters of Cyprus.
