New committee to bypass oil tender evaluation complexities

The Production Reconstruction, Environment and Energy Ministry appears determined to avoid a series of overlapping authority issues that have placed its departments at odds with EDEY, the Greek Hydrocarbon Management Company, by establishing an Evaluation Committee to assess exploration and exploitation tender bids made for three onshore blocks in parts of western Greece.

The move will not essentially resolve the conflicting administrative issues but will serve to bypass them and allow the evaluation process to proceed. The administrative overlaps resulted from a series of preceding organizational break-ups and reshuffles.

According to energypress sources, Production Reconstruction, Environment and Energy Minister Panayiotis Lafazanis will sign a ministerial decision for the Evaluation Committee’s establishment within the next few days.

The committee will be charged with the responsibility of evaluating bids submitted by two Greek corporate groups, ELPE (Hellenic Petroleum) and Energean Oil & Gas. Both companies have bid for a block in the Arta-Preveza area. If their respective bids meet technical and financial criteria, the two companies will then be requested to contest the block. Energean Oil & Gas was the solitary bidder for a block in the Etoloakarnania area, and ELPE submitted the only bid for a block in the northwest Peloponnese.

The energy ministry has noted that, besides a series of essential factors, including productivity, efficiency, and safety, it will also take environmental concerns into account when evaluating the bids.

The process is expected to be completed within a three-month period. The ministry has said it will establish separate contracts for each of the three onshore blocks on offer.