Greece approves oil and gas licence tender

Greece has greenlit an international tender for hydrocarbon exploration across four offshore blocks in the Mediterranean, following expressions of interest from Chevron and Hellenic Energy, its energy ministry said on May 1.

A ministerial decision issued earlier this week formally launched the process after Chevron expressed interest in two blocks south of Crete and another off the Peloponnese peninsula, according to a ministry statement.

Separately, a consortium led by ExxonMobil is analysing seismic data from two other blocks near Crete, having previously secured exploration rights.

The ministry said prospective bidders will have 90 days to submit offers once the tender notice is published in the Official Journal of the EU.

Greece, which depends partly on oil and gas imports to meet domestic demand, has revived efforts to explore for hydrocarbons, spurred by significant gas discoveries off Egypt – south of Crete – and despite a longstanding maritime dispute with Turkey over jurisdiction in the Aegean Sea.

Reviving domestic exploration was stated as a key role in Athens’ latest energy strategy, which also foresaw Greece emerging as a key regional hub for natural gas trade. To date, Greece has awarded exploration licences for nine onshore and offshore sites, and in April 2022, it listed these projects as having a national priority.

Assuming final investment decisions are taken, new domestic gas supply could come on stream before 2030, the strategy approved last year stated.

Greece’s potential and probable gas reserves are assessed at 680bn cubic metres (bcm). Past estimates place probable and contingent oil reserves at 250-300mn barrels, although only 10mn barrels are confirmed as proven.

Energy Minister Stavros Papastavrou is expected to meet Chevron executives during a visit to the US later this month, a ministry official told Reuters. The US major has not publicly commented on its interest in Greek exploration. 

The Greek government aims to complete the tender process by August and to have lease agreements with selected bidders ratified by parliament before year-end.

Greece’s push to step up oil and gas exploration stands in contrast to many other European countries that have increasingly restricted upstream development over recent years, citing climate objectives.