In November 2023, the Environmental Licensing Directorate of the Ministry of Environment and Energy approved the environmental conditions for the first exploratory drilling of hydrocarbons in Greece after decades.
Essentially, after 9 whole years since the “Ioannina” block was granted, the way was opened for the first drilling. Nine years in which investors Repsol (withdrawn) and Energean faced legal challenges against seismic exploration but also a lot of red tape and government back-and-forth on whether or not to support hydrocarbon exploration.
The area has been leased by Greek interests Energean, which is active in Prinos and of course in the hydrocarbon-rich offshore fields of Israel etc.
The Energean Adventure
Based on the schedule, Energean was going to start the drilling preparation procedures, for which all local bodies, the region and other relevant agencies have been in favor.
And he actually started the search for a port, a drilling rig, the licensing process for the construction site, etc.
As recently as February 2024, a group of residents and other collective bodies appealed to the Council of State against the decision of the Ministry of Environment and Energy, which, by the way, received a universally positive opinion!
The SC decided to hear the case in October 2024… That is, 8 months after the appeal and an investment of 35 to 40 million euros in the phase of the first drilling alone is up in the air…
The timing of the hearing of the appeal and the issuance of the decision works as a deterrent for investors, according to oil market sources.
Crete and ExxonMobil
Two years ago, the TotalEnergies – ExxonMobil – HELLENiQ ENERGY joint venture faced similar problems in the two promising offshore gas blocks of Crete.
The result was in April 2022 that the French TotalEnergies withdrew, not believing in the speed of justice, as it had also found with the court appeals against the decision on the seismic surveys.
ExxonMobil took over the “West of Crete” and “Southwest of Crete” concessions, assuming the role of operator with HELLENiQ ENERGY as a partner in the seismic surveys.
The two companies are in the stage of making an investment decision on whether or not to conduct the first exploratory drilling in Crete with an estimated decision time of 12 to 18 months.
Sources tell OT that there is concern in the consortium about the possibility of legal action when and if they proceed with the decision to drill.
Mr. Kyriakos Mitsotakis
In the spring of 2022, the Prime Minister Mr. Kyriakos Mitsotakis himself, shortly after the Russian invasion of Ukraine and the energy crisis, announced the government’s decision to accelerate the research program in the sea blocks of Crete and the Ionian Sea as well as the land block in “Ioannina ».
The Hellenic Hydrocarbons and Energy Resources Management Company (EDEFEP) ran the seismic surveys in collaboration with the oil companies.
However, the new legal action in the land block in Ioannina is troubling. And above all, the timing of the issuance of the decisions and the duration of the investors’ patience is a concern, as at least noted by oil market actors in OT.
The “block 10”
A few days ago, the government announced the creation of a marine park in the area of ”block 10″ in the Ionian Sea in the Cypriot Gulf which has been leased for hydrocarbon exploration by HELLENiQ ENERGY.
And in which a few million euros were spent on seismic surveys.
Essentially, although the government had decided on the exploitation of potential hydrocarbon deposits, a few months later it backtracked and banned it.
The reactions
The oil companies that took the Prime Minister’s announcements seriously in the spring of 2022 are faced with new data.
At least this is what sources from the upstream area support in the OT.
And the most disturbing thing is how they see the challenge of new obstacles and new reactions.
Today, April 29, the “All-Hellenic Assembly for the Protection of the Hellenic Trench” with its announcement essentially announced the blocking of any research for hydrocarbons in Crete and the Ionian Sea: “Within the supposedly protected marine area provided for in the Ionian Sea, there is the so-called “block 10 “in the Gulf of Cyparissia already granted to oil companies for exploration and extraction of hydrocarbons”, the organization states and continues: “And what is meant by protection of the marine environment when in the adjacent to the declared protected area of the Ionian Sea, in the block Southwest of Crete, until the day before yesterday they were unleashed the sound bombs of 3D seismic surveys driving away or even killing marine mammals, while if they go ahead with test or production drilling, tomorrow it will be adjacent to an industrial sea zone full of mining platforms, transport pipelines, supply ships and pollution barges trying to collect expected oil spills?’
And finally, he announces mobilizations of all kinds: “We will press in all directions so that the obvious is done and the entire Hellenic Trench enters a regime of absolute protection, without sound bombs, drills and mining platforms, without sonar and military exercises, without the uncontrolled circulation of ships”.
New partners
The aforementioned developments and in particular the delay in the awarding of Justice for investment decisions are said in the market to cause further obstacles.
According to information, the oil companies that have taken over the concessions are looking for partners to invest together and share the costs of research and drilling.
However, the time-consuming processes drag down any deals and actually discourage investment, the market says.
A year ago, the name of the Chevron giant was heard as being interested in entering the Ionian concessions.
All the developments around the Greek upstream seem to have frozen and no new investment movement is progressing.
Source: ot.gr
#Hydrocarbons #Adventure #Energean #Crete #ExxonMobil