Energy ministry planning key hydrocarbon sector changes

The energy ministry plans to make revisions to the legal framework concerning the country’s hydrocarbon sector, the intention being to swiften procedures for tenders offering exploration and exploitation licenses, bolster the operating ability of  EDEY, the Greek Hydrocarbon Management Company, and, possibly, change the sector’s concession model. The ministry’s plan is expected to be presented tomorrow at KYSOIP, the Government Council for Economic Policy.

The ministry aims to implement its revisions by the end of the year so as to avoid major delays experienced in the past.

According to the energy ministry’s plan, EDEY is expected to be reshaped as a more flexible enterprise, which would simplify hiring procedures for specialized personnel, needed to take on an anticipated greater workload. EDEY is planning to stage a series of new tenders.

The existing framework allows for lease agreements and production sharing agreements, both standard systems in the global industry. To date, all exploration and exploitation deals signed in Greece have been based on lease agreements.

The government wants to increase its involvement, thereby increasing its share of the investment risk and, by extension, potential benefits. The market’s response to these prospective changes remains to be seen.