Energean license for South Kavala gas deposit set for further extension

The government has submitted a draft bill to parliament for a further extension to an agreement, from 1999, between the Greek State and Energean Oil & Gas for exploitation of the “South Kavala” natural gas field in the Aegean Sea’s north.

According to the draft bill, the license, expiring on November 23, 2022, can be further extended either through a ministerial decision following an agreement with the license holder, or, once again, through a ministerial decision, up to and including the starting date of a license granting investors the right to use, develop and exploit the “South Kavala” natural gas field, almost depleted, as a prospective underground natural gas storage facility (UGS).

A tender staged by Greece’s privatization fund TAIPED for this latter license has reached the final round. Energean and a partnership bringing together gas grid operator DESFA and construction company GEK Terna are the final-round qualifiers.