Cyprus

Turkey tensions will not be escalated, ‘aim achieved’

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Turkey will not continue intensifying its provocations in the East Mediterranean as the neighboring country has already achieved its main goal, a State Department declaration noting that the country is performing hydrocarbon exploration activities in disputed territory, Dr Konstantinos Nikolaou, a seasoned petroleum geologist and energy economist, supports.

Turkey’s provocations over the past few days – the country sent a seismic survey vessel into Greek EEZ waters for further exploration work following such initiatives in the past – represent part of a carefully planned strategy whose aim is to end Turkey’s East Mediterranean isolation of recent years and put the country back in the frame of the region’s hydrocarbon developments, experts believe.

Turkey has refused to sign the UN’s International Law of the Sea treaty, strongly disagreeing with Article 121, giving EEZ and continental shelf rights to island areas.

Instead, the country has followed its own rules, adjusting them as it pleases, to avoid giving any rights to island areas.

Besides seeking to reinforce the country’s position that rejects any EEZ rights for islands, the latest Turkish moves also aim to cancel EEZ agreements signed by Cyprus with Egypt, Israel and Lebanon.

Turkey has unsuccessfully sought to sign an EEZ agreement with Egypt, during Muslim Brotherhood times.

Dr. Nikolaou predicts that there will be no Turkish movement south of Crete as the transfer of an area by Libya, Turkey’s regional partner, would be required. The area of Benghazi is not controlled by Fayez al-Sarraj, the head of Libya’s UN-recognized government, but by renegade commander Khalifa Haftar.

Ultimately, the Turkish strategy in the wider region is aiming for co-exploitation of hydrocarbon deposits that may be discovered.

Chevron buys Noble Energy, US striving for regional control

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Energy corporation Chevron has become the latest American giant, following ExxonMobil, to establish itself in the east Mediterranean upstream market following a five billion-dollar acquisition of Noble Energy, a deal that adds the gigantic Leviathan gas field in Israel’s EEZ to the California-based buyer’s portfolio and elevates the petroleum group into a dominant regional player.

This latest development highlights America’s strategy for the region, aiming to establish US control of production at new gas fields as well as supply to Europe, analysts noted.

Chevron’s acquisition of Noble Energy, highlighting the upstream industry’s elevated interest in the east Mediterranean, comes amid increased regional tension prompted by Turkish provocation. Greece’s neighbor has just sent a seismic survey vessel into Greek waters for hydrocarbon exploration activities.

Besides the Leviathan gas field’s recoverable reserves, estimated at 22 trillion cubic feet, the Chevron portfolio now also takes on Israel’s Tamar field, whose gas reserves are estimated at 7.1 trillion cubic feet.

Noble has proved reserves of 2.05 billion barrels of oil and gas to add to Chevron’s reported 11.4 billion.

Chevron, whose earnings in 2019 reached 139.9 billion euros, also adds to its assets, totaling 237.4 billion dollars, the Aphrodite gas field, situated within the Cypriot EEZ and estimated to hold 4.5 trillion cubic feet. Noble Energy is among this field’s operators.

Chevron’s control of the Leviathan gas field also secures American influence over the EastMed gas pipeline planned by Israel, Cyprus and Greece.

Fellow American petroleum giant ExxonMobil recently discovered, within the Cypriot EEZ, the Glafkos gas field, estimated to carry between 5 and 8 trillion cubic feet of gas. ExxonMobil has also taken on major licenses in Egypt and is also a member of a consortium formed with France’s Total and Hellenic Petroleum (ELPE) for licenses at offshore blocks west and southwest of Crete.

 

Cyprus wants unchanged cost agreement for link with Crete

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Though a new application submitted by EuroAsia Interconnector, a consortium of Cypriot interests, to the EU’s Connecting Europe Facility for funding support concerning an electricity grid interconnection project to link the Greek and Cypriot systems has yet to be examined or reciprocated by the European Commission, Greece and Cyprus have already begun talks on how to divide the remainder of the project’s costs not covered by the CEF.

The Cypriot side, which took the initiative for these talks, appears determined to ensure that Greece will stick to its share of the cost under the terms agreed to when the project also included the Athens-Crete link as part of a wider plan to interconnect the Greek, Cypriot and Israeli systems.

EuroAsia Interconnector head the wider Greek-Cypriot-Israeli plan. Greek power grid operator IPTO withdrew the Athens-Crete segment and is now working on it as a national project. IPTO is aiming for swifter progress on this section, urgently needed to resolve Crete’s pressing energy sufficiency issues.

Cyprus’ Regulatory Authority for Energy, RAEK, has forwarded to its Greek counterpart RAE a text presenting its cost-related views. RAEK wants to ensure that a Cross Border Cost Allocation agreement signed by the two sides late in 2017 for the Greek-Cypriot link, running from Crete to Cyprus, remains valid, despite Greece’s withdrawal of the Athens-Crete section.

According to the CBCA agreement, Cyprus will take on 63 percent of the cost of the Crete-Cyprus link and Greece will be responsible for the other 37 percent, under the condition that 50 percent of the total cost will be covered by EU funds, through the CEF.

The Crete-Cyprus interconnection is budgeted at 1.5 billion euros, meaning Greece’s share will be approximately 280 million euros.

This amount will be incorporated into IPTO’s accounts and need to be recovered through network surcharges included in consumer electricity bills, seen as a delicate matter by the Greek government.

Greek authorities have yet to respond to RAEK’s initiative as they await news from the European Commission on the CEF request.

Poseidon overland section plan kept alive, PCI status sought

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IGI Poseidon, a 50-50 joint venture between Greek gas utility DEPA and Italian energy operator Edison, is keeping alive the development prospects of an overland Greek segment, across northern Greece, for its Poseidon pipeline, to cross the Ionian Sea for a Greek-Italian link.

DEPA and Edison have submitted an application to the European Commission for PCI status concerning the overland section of Poseidon, enabling EU funding support, sources informed.

The Poseidon pipeline’s onshore segment, planned to stretch 760 km across northern Greece, from Kipous in the northeast, to Florovouni-Thesprotia, in the country’s northwest, before crossing the Ionian Sea all the way to Otranto, on Italy’s east coast, is considered an extension of the EastMed gas pipeline plan to link Greece, Cyprus and Israel.

Poseidon’s onshore segment could be used to transport natural gas from east Mediterranean gas reserves to Balkan markets.

The Poseidon pipeline’s overland section can also be expected to be linked to the Greek-Bulgarian IGB gas pipeline, another project involving IGI Poseidon.

The Greek-Italian Poseidon pipeline has been incorporated into a trilateral agreement signed by Greece, Cyprus and Israel for the EastMed pipeline. This pact was ratified in Greek Parliament last month.

Greece, Cyprus and Israel recognize the overland section of the Poseidon pipeline as a project of national significance.

Capacity of the Poseidon pipeline has been increased to 15 bcm from an original capacity of 8 bcm, while a further capacity boost to 20 bcm is planned.

 

Greece, Cyprus, Israel, with US, plan for EastMed meeting next month

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The energy ministers of Greece, Cyprus and Israel plan to stage a trilateral meeting next month, with US involvement, for talks on the prospective EastMed gas pipeline, to transport gas from Israeli and Cypriot fields to Europe via Greece and Italy.

It remains uknown if Francis Fanon, the US Assistant Secretary of State and head of the country’s energy portfolio, will participate at this meeting.

It also remains unclear if participants will stage a virtual conference as a result of pandemic measures or meet in person.

The Greek, Cypriot and US governments were waiting for the new Israeli government to be sworn in before shaping plans for the EastMed meeting, to also serve as a second energy conference between the four nations following an inaugural session in Athens last August.

Yuval Steinitz has been reappointed at Israel’s top energy post, meaning the line-up of last year’s session between the Greek, Cypriot and Israeli energy ministers can be repeated at the next meeting. Greece’s Costis Hatzidakis and Cyprus’ Giorgos Lakkotrypis are still at their posts.

The Greek, Cypriot and Israeli government officials are expected to reaffirm the commitment of their respective countries to the EastMed gas pipeline, as well as commitment to cooperation for regional peace and prosperity, sources said.

Also, the energy ministers of Greece, Cyprus and Israel, along with the session’s US representative, will seek to send Turkey a unified message on its provocative actions against Greece as well as increased aggression in the wider southeast Mediterranean region.

A trilateral EastMed gas pipeline agreement was approved in Greek Parliament last January.

Israel could soon reach a decision on the financing of some of the studies needed for the international pipeline’s link to the national grid.

Also, IGI Poseidon, a consortium comprising Greek gas utility DEPA and Italy’s Edison, is moving ahead with studies for the pipeline’s underwater and overland route between Greece and Italy. IGI Poseidon wants to make an investment decision on this project within the next two years. Meanwhile, Cyprus is making progress on licensing matters.

Committee to oversee Greece, Cyprus, Israel grid link compatibility

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Greek power grid operator IPTO, its Cypriot counterpart, DSMK, and project partners have been authorized by the energy ministries of the two countries to assemble a special committee tasked with ensuring technical compatibility between the prospective Athens-Crete grid interconnection and the planned Cypriot and Israeli links.

The Athens-Crete grid interconnection, work on which is set to begin, will be developed by IPTO subsidiary Ariadne Interconnector, following the Greek grid operator’s break away from Cyprus’ EuroAsia Interconnector, originally formed to oversee the entire interconnection project, from Greece to Israel, but now handling its Cyprus and Israel segments.

The Greek and Cypriot energy ministries have asked IPTO, DSKK, Ariadne Interconnector and EuroAsia Interconnector to assemble the special committee within the next fortnight.

Greece’s energy ministry is determined to contribute to all efforts resolving any technical issues for the wider Greek-Cypriot-Israeli interconnection but development of the Athens-Crete section, nationally significant as it promises to prevent energy shortages on Crete, remains the ministry’s main concern at this stage, sources informed.

The Greek government is providing strong political support to the Crete-Cyprus and Cyprus-Israel segments, the energy ministry’s secretary-general Alexandra Sdoukou has pointed out, noting Cyprus’ grid interconnection with the rest of the EU promises to help the country achieve RES objectives set for 2030.

Oil drilling plans on hold, forced by price collapse, pandemic

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Preliminary hydrocarbon exploration work planned by oil companies at licenses in the Ionian Sea and south of Crete is being postponed for an indefinite period that could last as much as a year, possibly more.

Upstream players are revising plans as a result of the collapse in oil prices and the coronavirus pandemic, a double setback for the sector.

Worse still, investment conditions for the Ionian Sea and Crete areas are made even more challenging by the fact that neither has yet to reveal sustainable fields.

In addition, both Greek zones are deep-sea areas of depths ranging from 2,500 to 3,000 meters, making exploration a high-cost venture.

Global oil majors are reducing investments and expenses by the billions in response to the unfavorable market conditions that have emerged over the past couple of months.

Fields with proven reserves have not been spared, which pushes untested fields such as those in Greece even further down the priority list.

The resumption of drilling ventures still at preliminary stages is not likely until oil prices rebound, energy minister Costis Hatzidakis noted in an interview with Greek daily To Ethnos.

It is a similar picture for Cyprus. The Eni-Total consortium yesterday announced it is postponing oil drilling activities in Cyprus’ Exclusive Economic Zone until March or April next year.

Athens wants greater French hydrocarbon engagement

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The government wants France’s Total to play a more active role in Greek offshore hydrocarbon exploration, Prime Minister Kyriakos Mitsotakis made clear during a meeting in Paris yesterday with the French group’s chief executive Patrick Pouyanné.

The potential of Greece’s hydrocarbon market, including offshore licenses south and southwest of Crete held by a Total-led consortium – it also features Exxon Mobil and Hellenic Petroleum (ELPE) – was the main focus of yesterday’s meeting.

Processing of seismic data collected from the Cretan offshore blocks has provided strong evidence of a deposit sharing similar attributes to Egypt’s Zohr gas field. However, this needs to be proved in practice. French officials have remained cautiously optimistic as they await initial drilling operations for a clearer picture.

Total’s plans for exploration within the Cypriot Exclusive Economic Zone, specifically at Block 8, for which Total shares a license with Italy’s Eni, were also discussed yesterday.

Turkish drillship Yavuz has sought to engage in illegal exploration activities in this area. French officials do not intend to intercept any Turkish moves at this stage but are expected to do so if the exploratory rights of Total and Eni are disputed once the companies decide to start exploring the area.

 

DEPA signs EIB loan agreement to build LNG supply tanker

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Gas utility DEPA has signed a loan agreement with the European Investment Bank for the construction of an LNG supply tanker with a 3,000 cubic-meter capacity, sources have informed.

This loan agreement follows a funding agreement reached between DEPA and the Innovation and Networks Executive Agency (INEA) for EU co-financing – through the new BlueHUBS program – of the LNG tanker to be built by the utility.

Planned to adopt new environmentally friendly shipping fuels,  the LNG tanker promises to be the first of its kind in Greece and the east Mediterranean. It will be designed to meet LNG supply needs at Piraeus port and also transport LNG to other major ports around the country.

DEPA, a wide supporter of LNG usage in shipping, is coordinating the BlueHUBS program (2019-2022), aiming for the development of LNG supply carriers.

Jointly supported by Greece and Cyprus, BlueHUBS represents the continuation of the Poseidon Med II program and has a total budget of approximately 66 million euros, of which 30 percent is being provided by the EU.

Greece looks to build on Italian East Med interest at Cairo event

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Energy minister Costis Hatzidakis will be looking to build on yesterday’s interest expressed by Greek gas grid operator DESFA’s main shareholders – Snam, Enagas and Fluxys – in the planned East Med gas pipeline project, especially Italy’s Snam, when he meets with regional counterparts at the Eastern Mediterranean Gas Forum in Cairo, an event encouraging collaboration on gas trade in the region.

The energy ministers of Greece, Cyprus, Egypt, Israel, Italy, Jordan and the Palestinian Authority are scheduled to participate at the Cairo event.

Snam chief executive Marco Alvera expressed particular interest in the East Med gas pipeline at a meeting yesterday involving Greek Prime Minister Kyriakos Mitsotakis and the chiefs of the Italian company’s DESFA partners, Enagas and Fluxys.

Snam’s interest in the prospective East Med gas pipeline, to carry natural gas from Cypriot and Israeli fields to the EU via Italy, follows that of Energean and represents further investor confidence in the sustainability of the pipeline as it possesses commercial appeal for gas producers in the east Mediterranean as well as gas sales.

Participants at the Eastern Mediterranean Gas Forum are hoping the event is upgraded into a transboundary organization for gas cooperation. If an agreement on a forum charter is achieved, a signing ceremony will take place in Cairo tomorrow.

Besides participating at the forum, Hatzidakis, Greece’s energy minister, has also lined up meetings with his Cypriot, Israeli and Egyptian counterparts, Giorgos Lakkotrypis, Yuval Steinitz and Tarek el-Molla, respectively, for talks on the next steps needed to develop the East Med pipeline.

In addition, Hatzidakis will discuss prospective electricity grid interconnections between Greece and Egypt and also meet with Italy’s economic development minister Stefano Patuanelli, responsible for the country’s energy portfolio, who recently forwarded a letter of support for the East Med project to his Greek counterpart.

East Med pipeline to upgrade geostrategic role of participants

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The EastMed Pipeline Agreement, a trilateral deal signed by the energy ministers of Greece, Cyprus and Israel in Athens yesterday with the leaders of all three countries in attendance, includes provisions for measures to protect and safeguard the pipeline project, sources have informed.

Other details in the agreement, fundamental to the region’s energy developments, include a regulatory and licensing framework facilitating the project’s development, common tax rules, as well as terms enabling the entry of new members and transmission of additional natural gas quantities from existing or new gas fields, including south of Crete, should any new deposits be discovered in the region.

The agreement upgrades the geostrategic roles of Greece and Cyprus and is a crowning achievement for the three-way cooperation established between the two countries and Israel, noted Greek Prime Minister Kyriakos Mitsotakis.

The 2,000-km pipeline is planned to carry between 10 to 20 billion cubic meters of natural gas to Europe via the three countries and Italy.

Addressing the heightened Turkish provocation of late, the Greek leader noted that the pipeline does not pose a threat for any side, adding regional cooperation is open for all provided rules of good neighborliness and international law are respected.

Following up on the recent commencement of production at the Leviathan gas field off the coast of Israel, the EastMed Pipeline Agreement establishes Israel as a key energy player in the region, stressed Israeli Prime Minister Benjamin Netanyahu.

The project promises to offer major collective benefit for the three countries involved as well as the wider region, noted Cypriot President Nicos Anastasiades.

Earlier yesterday, Greek gas utility DEPA and Energean Oil & Gas, active in the wider Mediterranean region, signed a Letter of Intent at the energy ministry through which DEPA will be able to purchase natural gas quantities from Energean, extracting at Israeli gas field licenses.

DEPA, in a company announcement, described the Letter of Intent as a major first step for the East Med project’s commercial viability.

Trilateral East Med agreement set to be signed in Athens today

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The energy ministers of Greece, Cyprus and Israel are set to sign a trilateral agreement in Athens this afternoon for the development of East Med, a natural gas pipeline to carry gas to Europe via the three countries and Italy.

The pipeline, planned to measure 2,000 km and offer a capacity ranging between 10 to 20 billion cubic meters, promises to reinforce the Greek-Cypriot-Israeli alliance amid times of heightened Turkish provocation in the region.

Italian economic development minister Stefano Patuanelli, responsible for the country’s energy portfolio, has forwarded a letter of support for the project to Greek energy minister Costis Hatzidakis.

The Greek minister will sign the East Med agreement today with Giorgos Lakkotrypis and Yuval Steinitz, his Cypriot and Israeli counterparts, respectively. Italy is also expected to eventually join the partnership for this project.

Just hours before this signing ceremony, planned for 15:45, Greek gas utility DEPA and Energean Oil & Gas, active in the wider Mediterranean region, will sign a Letter of Intent at the energy ministry.

Importantly, this agreement promises to pave the way for a first commercial agreement reserving natural gas quantities ahead of the East Med pipeline’s construction, as DEPA will commit to purchasing natural gas quantities from Energean, extracting at Israeli gas field licenses. These quantities will represent approximately 20 percent of the East Med pipeline’s initial capacity.

The development prospects of East Med were recently propelled by a decision from IGI Poseidon, a 50-50 joint venture involving DEPA and Italy’s Edison, to accelerate the completion of all pending issues needed for the project’s maturity.

An upcoming East Med Gas Forum, to take place in Cairo January 15 and 16 with participation from the energy ministers of Greece, Cyprus, Israel, Egypt, Jordan and the Palestinian Authority, should help add further dimension to the alliance.

The East Med pipeline, planned as a complementary route to other projects in the wider region, stands as the most mature component of an EU plan entailing the development of an energy corridor to connect new energy sources in the east Mediterranean with European markets, including the southeast European market.

 

DEPA, Edison firm on East Med amid Turkish provocation

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Italy’s Edison, part of the Poseidon consortium formed with Greek gas utility DEPA for the development of the East Med gas pipeline – planned to transport natural gas from Israeli and Cypriot fields to the EU via Greece and Italy – has decided to accelerate pre-construction procedures following escalating provocation from Turkey, energypress has reported.

A decision was reached at a recent Poseidon meeting in Milan to assign all needed project studies, financially backed by the EU, within the next two months for swifter completion of preliminary procedures, and, by extension, the project itself, a 2,000-km pipeline.

Greece’s energy minister Costis Hatzidakis and his Israeli counterpart Yuval Steinitz reiterated their support for the project at a recent meeting.

Turkey, seeking to block the project, recently reached a maritime border agreement with Libya, which EU leaders are set to reject as invalid, insisting the pact interferes with the rights of other countries bordering the Mediterranean Sea.

Cypriot Foreign Minister Nikos Hristodoulidis has received reassurances from Israeli government officials that the country is not involved in talks with Ankara for the development of an alternative gas pipeline, according to a Cypriot newspaper report. Israel remains committed to the East Med plan, it added.

DEPA’s Poseidon stake will be transferred to the Greek gas utility’s division for international projects. DEPA is being split ahead of its upcoming privatization.

Energean submits applications to import, supply gas to Cyprus

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Energean Oil & Gas, the oil and gas producer focused on the Mediterranean, has submitted applications to Cypriot authorities for import and supply of natural gas to Cyprus commencing 2021, the company has announced.

The submission of the applications follows the ‘Karish to Cyprus Preliminary Pipeline Development Plan’ that has already been presented to the Cyprus Energy Regulatory Authority, according to which, natural gas will be transported through pipelines from the Karish offshore block to the “Energean Power” Floating Production, Storage and Offloading unit, and from there through a pipeline to Vassiliko, Cyprus, where it will landfall.

The pipeline from the Energean Power FPSO to Vassiliko will have a total length of 215 kilometres and transport natural gas from the Karish North field, offshore Israel, which contains 25 BCM of discovered recoverable resources. Total investment will be circa $350 million and will be funded by Energean.

The Republic of Cyprus will bear no upfront cost. Provided that there will be no delays in permitting procedures, the project will allow the Republic of Cyprus to receive competitively priced natural gas from 2021.

Moreover, the project will further strengthen Cyprus’ geostrategic role in the Eastern Mediterranean, in accordance with the trilateral cooperation between Cyprus, Israel and Greece and in reference to the East Med Pipeline project that is planned to transport natural gas to Europe.

Mathios Rigas, CEO of Energean, stated:

“Energean’s proposal offers the Republic of Cyprus the option to switch to natural gas as soon as possible, and under the most competitive terms. Execution of the proposal will bring competition to the Cypriot natural gas market, decrease energy costs across the economy and result in enhanced diversity and security of supply. Our proposal enhances the planning of the Republic of Cyprus and the security of supply, as it is supplementary to the LNG import procedures launched by the Cypriot Government.

We expect that the Republic of Cyprus will take advantage of the options that the market offers for the benefit of the Cypriot economy and the consumers”.

Energean has already signed Letters of Intent (LOIs) with all three IPPs that have been granted a license to construct combined cycle power plants in Cyprus – Power Energy Cyprus, Lysarea Energia and Paramount Energy Corporation.

The Energean Power FPSO has a capacity of 8BCM per year and Energean has already signed firm GSPAs with Israeli IPPs and industrial consumers for 4.5 BCM per year for an average period of 16 years as of 2021.

 

Cyprus on track for Industry 4.0

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By Constantinos Kesentes

Chairman of the Board of Directors at GAIAOSE

Member of Innovation Advisory Team at HCAP

After the difficult period of the economic crisis, the Republic of Cyprus has been impressive in the way it is preparing the future. A characteristic example is the field of innovation. The Republic of Cyprus has turned its attention to the fourth industrial revolution and strives to create the right environment, at the level of enterprises, companies, services and investments, by adopting innovative practices and processes.

On the initiative of the President of the House of Representatives, Mr. Dimitris Syllouris and through a systematic effort of three years, Cyprus has already developed a National Strategy for Blockchain Technologies and Distributed Ledger Technology (DLT) while the corresponding National Strategy for the Development of Artificial Intelligence is already at the stage of completion. With a clear vision, strategic goals, priorities and a precise roadmap that includes pilot projects and the necessary legislative reforms the Republic of Cyprus is claiming a position among the pioneering EU states and a coordinating role at a regional level.

Given the recent experience of attending the Conference of the House of Representatives on “The Fourth Industrial Revolution: Innovation, Artificial Intelligence, and Integration”, I would like to point out some aspects that impressed me:

– The high symbolism of organizing such a specialized conference inside the House of Representatives and with the active participation of Members of the House, which signifies the importance that the Republic of Cyprus attaches to the issues of innovation.

– The harmonious cooperation of public and private academic institutions with public and private bodies with the sole aim of advancing the country.

– The inspirational leadership of President D. Syllouris who bears the characteristics of a visionary politician and a result-oriented manager. An example of his effectiveness and determination was his statement to a participant who noticed that “In order for the pilot projects to begin the completion of the legislative reforms is required.” The President’s answer was: “If we want to be among the successful countries, we have to move fast. We will find the way to realize the pilot projects without having to wait for the completion of the legislative work.”

Having these thoughts, I met the President Mr. D. Syllouris during his recent visit in Athens to discuss about the conclusions of the Conference and investigate the cooperation opportunities between Greece and Cyprus for the development of innovative infrastructure and services.

Right after the Conference, at the initiative of the House of Representatives, the process for developing an integrated legislative framework for blockchain/DLT has begun. With the help of experts from Europe and the US, a modern and flexible institutional framework is being designed with a particular emphasis on supervisory mechanisms, which will ensure the transparency and the avoidance of the use of blockchain services to serve illegal activities.

The medium-term goal of President D. Syllouris is the establishment of a Network of Understanding and Cooperation among all interested parties for the implementation of the National Strategy of the Republic of Cyprus for the fourth industrial revolution. Academic institutions, research centers, the business world, startup ecosystems and funds will be invited to participate in this network and to cooperate in order to make Cyprus a benchmark for industry 4.0.

In this context, significant opportunities of cooperation between Greece, Cyprus and States of the wider region are created to develop public blockchain services infrastructure and to engage companies in the provision of value added services in sectors such as supply chain, real estate, transportation, fintech, retail, intelligent agriculture, food safety & traceability and many more. These co operations could be the catalyst for the overall upgrade of the two countries’ economy.

It is worth mentioning that, according to a recent report of the World Economic Forum, blockchain could lead to 1.5% global GDP growth in the next decade. With this expectation a global race to develop such infrastructure and services has begun. The recent “Worldwide Semiannual Blockchain Spending Guide” report of International Data Corporation (IDC) forecasts that spending on developing blockchain solutions in 2019 will increase by 80% comparing to 2018 and will reach 15.9 billion USD in 2023.

The position of Greece and Cyprus in this scene is reinforced by the fact that the fourth industrial revolution is of high priority for the EU. The European Commission has a holistic approach to blockchain technologies and DLT, which aims at positioning Europe at the forefront of blockchain innovation and uptake. In this context, the EU aims through a series of initiatives to reinforce cooperation on the development of blockchain/DLT based applications, support international standard setting and facilitate dialogue between industry stakeholders and regulators, notably for a regulatory framework, that builds on the EU acquis.

An important initiative that is involved in the above context is the European Blockchain Partnership (EBP) for the establishment of a European Blockchain Services Infrastructure (EBSI) that will support the delivery of cross-border digital public services, with the highest standards of security and privacy. Both Greece and Cyprus are members of EBP. At the same time the EU, in order to encourage cooperation between public and private sector, has launched the International Association for Trusted Blockchain Applications (INATBA), which brings together industry, startups and SMEs, policy makers, international organisations, regulators, civil society and standard setting bodies to support blockchain/DLT to be mainstreamed and scaled-up across multiple sectors. The EU context of initiatives is complemented with appropriate funding. Already 180 M€ of EU funding spent to support research and innovation in blockchain/DLT while a new investment fund, “The blockchain and AI fund”, is being created. In 2020, 100 M€ will be allocated to the European Investment Fund (EIF) for being invested in Venture Capital funds, who will then invest a total of 300 to 400 M€ in AI and blockchain startups.

This favorable framework, which appears to be in place, is an important opportunity for growth for the economies of Cyprus and Greece. Initiatives like the one of the President of the House of Representatives, Mr. D. Syllouris, contribute to this very direction.

 

 

PHAOS Renewables and Sungrow join forces for Greece, Cyprus

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PHAOS Renewables, a Greek company with significant experience in the PV sector since the birth of the Greek market back in 2007, has formed a partnership with Sungrow Power Supply, a global leader, for the Greek and Cypriot markets, the partners have announced.

The partnership was established to facilitate high-quality and reliability needs prompted by growth in both these markets, the partners announced.

As a result, PHAOS Renewables is now an official distributor of Sungrow in Greece and Cyprus.

Both companies have set a target for quick development and the acquisition of a market share proportional to Sungrow’s leading global position through the supply of its innovative products via the PHAOS Renewables channel and support.

PHAOS Renewables is committed to supplying high-quality services and offering constant support, both commercial and technical, it noted.

“We are very happy and proud to join forces with PHAOS Renewables and together introduce to the Greek and Cypriot markets our products and solutions. Especially, we are in the happy position through this agreement to launch our new CX series which have been developed with all the latest technological innovations and convenience of very easy commissioning,” noted Baris Sözener, Sungrow’s Director of Sales & Operations for Turkey, Greece, the Balkans and Ukraine.

“PHAOS Renewables provides world-class commercial and technical support and consultancy to its partners and clients and this is one of the reasons why we chose them as our strategic partner,” stressed Florian Chan, Sungrow’s Head of Distribution Europe.

Konstantinos Karagiannidis, General Manager at PHAOS Renewables, commented: “We are very happy and proud to have reached this distribution agreement for Sungrow products in Greece and Cyprus. It is widely known that Sungrow is the global leader in the solar inverters industry. This agreement recognizes the potential of PHAOS Renewables in the PV sector and also reinforces the company to achieve its goal of providing services and products of the highest quality to our partners and clients.”

Sungrow’s global installed capacity totals more than 87 GW, June figures showed. Founded in 1997 by University Professor Cao Renxian, the company is a leader in the research and development of solar inverters. Powered by a dedicated R&D team, it markets a broad product portfolio offering PV inverter solutions and energy storage systems for utility-scale, commercial, and residential applications, as well as internationally recognized floating PV plant solutions.

Sungrow products power installations in over 60 countries, maintaining a worldwide market share of over 15%, the company noted.

 

 

PM decision on Crete link, wider PCI plan support needed today

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Negotiations ran throughout the day until late last night as all sides involved sought to determine if an agreement is possible on the prospective Crete-Athens power grid interconnector and whether the wider Athens-Crete-Cyprus-Israel interconnection, an EU project of common interest (PCI), remains feasible under the current conditions.

Greek Prime Minister Kyriakos Mitsotakis must inform the European Commission  today on whether Athens supports the wider PCI project, a stance that would incorporate the Athens-Crete segment, or pursue this segment separately as a national project.

A European Commission PCI committee is meeting today to discuss the EU’s new PCI list for the next two years.

Greek power grid operator IPTO has been embroiled in a dispute with Cypriot consortium EuroAsia Interconnector over development control of the wider project’s Crete-Athens segment. EuroAsia Interconnector heads the wider project and has been joined by Elia, Belgium’s electricity transmission system operator, in a strategic alliance.

The Cypriot side entered yesterday’s negotiations with a slightly improved offer but the Greek side still considers it insufficient for constructive talks.

The Greek government has set red lines for the Athens-Crete segment, including no further delays for ongoing tenders offering converter station contracts, which effectively means technical term revisions will not be accepted. Greek officials insist compatibility for the wider project is ensured.

Gov’t making last-ditch effort for Cypriot deal on Crete grid link

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The government, determined to move ahead with the country’s grid interconnection projects in support of economic and environmental concerns, is making a final effort to establish cooperation between Greek power grid operator IPTO and Cypriot consortium EuroAsia Interconnector, at odds for development control of a grid project to link Crete with Athens.

The EuroAsia Interconnector consortium heads a wider PCI-status project to link the Greek, Cypriot and Israeli grids.

“We need to have made decisions by October 4. Grid Interconnections are a priority for environmental and economic reasons,” energy minister Costis Hatzidakis stressed yesterday, speaking at a conference staged by the Hellenic Entrepreneurs Association (EENE).

The government is seeking to make the most of ongoing visits to Greece by Cypriot minister of energy, commerce industry and tourism Giorgos Lakkotrypis and former foreign minister Ioannis Kasoulides, now Euroasia Interconnector’s Chairman of the Strategic Council.

The Greek energy ministry has not ruled out an agreement with Euroasia Interconnector for the Crete-Athens grid link but has made clear swift development of the project is the top priority. A Greek-Cypriot-Israeli grid interconnection is still desired by the Greek government but the Cretan link is seen as even more crucial, Hatzidakis, the energy minister, is insisting, according to sources.

Euroasia Interconnector and the European Commission have requested the cancellation of a decision by RAE, the Regulatory Authority for Energy, awarding the Cretan project to Ariadne, a fully-owned IPTO subsidiary. This would delay progress.

“The only remaining prospect for cooperation would require Euroasia to provide the needed capital for a stake in Ariadne. But the Cypriot consortium appears unwilling or unable to do this,” an official deeply involved in the matter has informed.

The Cretan grid link project will be continued as a national project if current talks with the Cypriot side do not lead to any agreement, sources informed. If so, the Greek government is expected to deliver a pending reply to Brussels making clear that it does not support the entire Athens-Crete-Cyprus-Israel project.

Meanwhile, prospective bidders of a tender concerning the Crete-Athens grid interconnection project’s engineering, procurement and construction of two converter stations and a GIS substation have been given a further deadline extension. An initial August 30 deadline had been reset for September 30 before the latest extension.

Ratification of Cretan, western offshore licenses just days away

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Parliamentary approval of offshore hydrocarbon exploration and production licenses awarded for four fields west and southwest of Crete as well as Greece’s west is now just days away.

The submission of all four licenses to Greek Parliament by this Friday for ratification is seen as a very likely prospect.

The related draft bill carrying the four licenses will essentially represent the recently appointed energy ministry’s first legislative act.

A consortium comprised of Total, ExxonMobil and Hellenic Petroleum (ELPE) has been awarded two licenses for blocks west and southwest of Crete. Repsol and ELPE were the winning bidders of a tender for a block in the Ionian Sea.

Tenders for these three licenses were held following interest expressed in 2017.

ELPE is the sole participant in a license awarded for Block 10 northwest of the Peloponnese, following a tender launched in 2014.

Scientific surveys have confirmed many geological similarities between the two Cretan offshore blocks and southeast Mediterranean natural gas fields that have produced major discoveries such as Egypt’s Zohr, Cyprus’ Aphrodite and Israel’s Leviathan.

A clearer picture on the prospects of the Greek fields is expected in  eight years, the amount of time it should take to complete related exploration work. A first drilling operation is expected towards the end of this eight-year effort.

The presence of ExxonMobil and Total signals heightened US and French hydrocarbon interest in the wider southeast Mediterranean region.

Industry experts believe ratification of the four Greek licenses will spark further upstream developments in the wider region, including Greece. Preparations are underway for more offshore licenses, especially south of Crete, according to some sources.

More than €3bn invested during crisis, ELPE Upstream chief tells

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Hellenic Petroleum ELPE’s Upstream S.A. CEO  Yannis Grigoriou was interviewed for the 3rd episode of BGS Talks Youtube show, discussing, with Regina Chislova, Project Director of Exploration and Production Offshore Congress Hub EPOCH 2019, offshore exploration in Greece; relations between the company and the Greek government; cooperation with ExxonMobil and Total; investments during the crisis and other topics. Excerpts, provided by the BGS Group, follow below. The full interview is available on BGS Talks Youtube channel.

“Regina Chislova: In general, let us list the most important projects happening in the region right now.

Yannis Grigoriou: I think what is going on around Cyprus is very interesting, the big majors are there… I think that over the next days we will have some positive announcements. The licensing round of Egypt was a success for the country…And, in Greece, we are signing the lease agreement for two huge offshore blocks around Crete together with Total and Exxon Mobil.

R.C: Could you give us more details on this project, since the majors came to the region.

Y.G: We have geological concepts in our mind. It was almost three years ago, when we had in our hands some multi-client seismic data sold by PGS. We were looking at those and trying to interpret the complex geology of the area…So we worked on that for 2 or 3 months and then we discussed it with Total…We thought: “Let’s form a joint venture to go further on that.” We did that and then we thought again “We need another company to join us” and…we approached Exxon Mobil. In autumn 2016, we created a very strong joint venture for the exploration in the country – Total 40% operator, Exxon Mobil 40%, and ELPE 20%. Following negotiations and other things we are set to sign the lease agreements for these 2 blocks which are really big and very promising.”

“R.C: The country suffered from an enormous crisis. How has the oil and gas industry survived?

Y.G: At ELPE, we survived the crisis because we invested more than €3 billion in building a brand new refinery near Athens and also upgraded our refineries. As the group mostly consists of the downstream oriented group, these investments, first of all, created a number of jobs. We had an opportunity to produce high-quality products according to the strictest EU specifications, which we exported to nearby countries – to Italy, France; we are exporting petrochemicals to Turkey. So, we overcame the Greek crisis by exporting products. We have experienced high profits over the last 3 years…Our profits on an EBITDA basis are almost €800-900 million, which gives us an opportunity for further growth and investments in other business opportunities like upstream or renewables. The export of renewables is also the next pillar for growth for the company.”

“R.C: The principle of your company is “we operate with responsibility towards society and the environment”. Can you elaborate?

Y.G: Health, safety and environment is our first principle for all the company’s activities. We are trying our best, in all our activities, to protect the health of our employees, the health of the local communities, and their safety and the environment. At a recent Gulf of Patras project, for example, where we conducted a 3D seismic survey, we did so in compliance with environmental regulations and special attention to the dolphins.

“R.C: How do you approach your team as a senior-level manager?

Y.G: If I say “as a friend” perhaps there would be misunderstanding in the whole group, but the way we work is like that. We are not a kindergarten. Perhaps, if you ask them, they might tell you that I’m a very strict boss and I push them to the end. But we set goals – sometimes difficult ones – and all of us work together to achieve them.”

Watch the full interview on BGS Talks Youtube channel for insight into why Yannis Grigoriou thinks it is possible to discover fields the size of Zohr in the Greek offshore area; how to cope with failure, and other matters.  

 

Step closer to establishment of natural gas market in Cyprus

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The multinational consortium of JV China Petroleum Pipeline Engineering Co Ltd, AKTOR S.A. and METRON S.A., with Hudong-Zhonghua Shipbuilding Co. Ltd and Wilhelmsen Ship Management Limited has emerged as the preferred bidder in a tender for the construction of infrastructure required for the introduction of natural gas in Cyprus, authorities announced today.

The project’s planned LNG import terminal includes a Floating Storage Regasification Unit (FSRU), a jetty for the mooring of the FSRU, jetty borne and onshore pipelines as well as additional facilities.

The LNG Import Project is co-financed by a grant from the EU Connecting Europe Facility (CEF) financing instrument.

The tender’s result is the outcome of a lengthy and complex tender process overseen by DEFA in cooperation with external industry experts, amongst whom were highly experienced technical, legal, commercial and financial experts.

The preferred bidder needed to satisfy a series of qualitative, quantitative and financial criteria so as to be able to demonstrate an ability to perform at the high standards set by DEFA regarding the development of the Cyprus natural gas market infrastructure.

The winning consortium is soon expected to be invited to Nicosia for the finalization of the process and the signing of the contracts with ETYFA (Natural Gas Infrastructure Company).

A number of consortiums featuring major companies active both in Europe and internationally participated in the tender process.

DEFA Chairman, Dr. Symeon Kassianides commented: “We are pleased to see the successful outcome of the process. Here at DEFA we believe that the future of the country is aligned with natural gas and we expect it to play a major role in the economic development of the country in years to come. The establishment of the natural gas market will boost the development of the whole energy and industry sectors of the Republic.”

Greek, Cypriot, Israeli officials seeking Italy’s East Med return

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Greek, Cypriot and Israeli officials are working on details of a plan aiming to win back Rome’s support for the East Med pipeline, an ambitious 1,900-km pipeline to carry southeast Mediterranean natural gas from Israel to Europe via  Italy.

Efforts by Washington and Brussels to lure back Italy, whose coalition government has withdrawn the country’s support for the project, are pivotal.

Part of the overall diplomatic effort may be unveiled at an Athens energy summit today.

The Greek, Cypriot and Israeli energy ministers, Costis Hatzidakis, Giorgos Lakkotrypis and Yuval Steinitz, respectively, as well as US Assistant Secretary Francis Fannon, are taking part in the summit.

Fannon held successive meetings in Athens yesterday with Greece’s energy minister and the deputy foreign minister Konstantinos Fragogiannis. The East Med project’s promotion was a key subject of these meetings, especially Fannon’s talks with Hatzidakis, Greece’s energy minister.

Last May, Italian Prime Minister Giuseppe Conte, heading Italy’s right-wing populist coalition, declared Rome does not want the East Med pipeline to land on Italian territory. Instead, he proposed the pipeline’s link to TAP, another gas pipeline project being developed to carry Azerbaijani natural gas to Europe, via Italy.

East Med is envisioned to primarily carry deposits from Cyprus’ recently discovered “Aphrodite” gas field and the Israeli-controlled block “Leviathan” along a route stretching from Israel to Europe, also via Italy.

In response to Italy’s stance, Israel now appears to favor an alternate route for East Med that would avoid ending up on the Italian coast. Experts regard this prospect as difficult but not impossible as the pipeline project is still at the planning stage. Greece and Cyprus prefer Italy’s incorporation into the pipeline route.

 

 

New effort for East Med agreement at Athens energy summit

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Greek gas utility DEPA and Italian energy giant Edison, collaborating on a plan to develop the East Med pipeline, envisioned to link the Greek, Cypriot and Israeli natural gas systems, are looking to take a crucial technical step ahead of construction.

Their YAFA Poseidon joint venture – spearheading the ambitious project, a 1,900-km pipeline stretch with an investment cost of between 6 and 7 billion euros – is gearing up for the launch of FEED (Front-End Engineering Design), environmental and detailed underwater research studies.

The European Commission has approved 34.5 million euros from the EU’s Connecting Europe Facility (CEF), a funding instrument, for these studies. The CEF amount will cover half the cost of the aforementioned preliminary studies, which will push the plan ahead to a mature stage.

The pipeline project is planned to carry southeast Mediterranean natural gas, primarily deposits from Cyprus’ recently discovered “Aphrodite” gas field and the Israeli-controlled block “Leviathan”, along a route stretching from Israel to Europe.

An agreement between Greece, Cyprus, Israel and Italy, where the pipeline is planned to conclude, is still needed.

East Med plans have been at a standstill ever since the current Italian government announced it was stalling the project.

According to sources, the Greek, Cypriot and Israeli energy ministers will seek to restart procedures and also send out a message of encouragement to the Italian government when they meet at an Athens energy summit tomorrow. US Assistant Secretary Francis Fannon will also participate.

East Med, still at a theoretical stage, promises geostrategic might for Greece, Cyprus and Israel, as well as the USA, on southeast Mediterranean energy matters, especially against Turkey’s opposition to hydrocarbon exploration within Cyprus’ Exclusive Economic Zone (EEZ).

The pipeline plan also promises to break Russia’s dominance of gas supply to the EU.

 

 

Total seeking buyer for its 50% stake in Block 2, west of Corfu

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French oil and gas multinational Total appears to be preparing to sell its 50 percent stake in an offshore license west of Corfu, Block 2, preferring instead to focus on other hydrocarbon interests in Greece, west and southwest of Crete.

Total, the operator of Corfu’s Block 2 license, established a consortium for this venture with Edison and Hellenic Petroleum (ELPE), each holding 25 percent stakes.

This license was signed in October, 2017 following the launch of a tender in 2014 that offered a total of 20 offshore blocks in the Ionian Sea and south of Crete.

Total is in partnership with US major ExxonMobil and ELPE for its licenses west and southwest of Crete.

Recent activity in Cyprus’ Exclusive Economic Zone (EEZ) – an area in which Total has joined forces with Italy’s Eni to take on Block 7 – as well as developments in the wider eastern Mediterranean, has turned the French oil and gas giant’s attention to this region, sources told energypress.

Further changes are expected in the Greek market. ELPE is believed to be seeking partners for exploration and production licenses it has acquired alone.

 

Greek-Cypriot-Israeli energy summit highlights US interest

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Washington’s supportive interest in the energy partnership between Greece, Cyprus and Israel has grown, driven by the prospect of hydrocarbon exploration in the southeast Mediterranean region as well as the East Med natural gas pipeline, planned to carry Cypriot, Israeli and, possibly, Egyptian natural gas to the EU via Greece and Italy.

Highlighting this interest, an upcoming Athens energy summit, scheduled to take place on August 6 and 7, comes as a US initiative, energypress sources informed.

It will follow a meeting just days ago, at the East Med Gas Forum in Egypt, that brought together Greek energy minister Costis Hatzidakis with his Cypriot and Israeli peers, Giorgos Lakkotrypis and Yuval Steinitz, respectively. In addition, Greek Prime Minister Kyriakos Mitsotakis recently met with Cypriot leader Nicos Anastasiades.

US Assistant Secretary Francis Fannon, head of the Bureau of Energy Sources, will also take part in the Athens energy summit. Fannon is scheduled to meet with Hatzidakis, Greece’s energy minister, and the country’s deputy foreign minister Konstantinos Fragogiannis on the eve of the event.

The summit highlights the US-fostered partnership between Greece, Cyprus and Israel, united against escalating Turkish tension concerning offshore hydrocarbon exploration plans within Cyprus’ Exclusive Economic Zone (EEZ).

The event’s participants are also expected to discuss the East Med pipeline. An agreement between the three countries and Italy remains pending. Last spring, Italian Prime Minister Giuseppe Conte claimed he sees no benefits for Italy in the project, effectively bringing the country’s effort in the matter to a standstill.

Washington openly supports this natural gas pipeline as it promises to establish an alternative supply route to Europe that would restrict Moscow’s energy dominance on the continent, through Gazprom.

Sideline efforts are being made to alter Italy’s negative stance, sources informed. A message could be projected to Rome through the imminent Athens event.

Crete grid link urgent, minister stresses at Cyprus meeting

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Euroasia Interconnector, a consortium of Cypriot interests heading a PCI-status grid interconnection to link the Greek, Cypriot and Israeli systems, is prepared to collaborate with Greek authorities for the development of the project’s Greek segment, to connect Crete with Athens, as long as Greece accepts a related road map set by the European Commission last October, sources have informed.

Essentially, this can be interpreted as a Cypriot demand for Greece to accept the project’s technical specifications that were rejected by Greek power grid operator IPTO and the previous Syriza government.

Last year’s road map includes all the technical, financial and interconnection details concerning the project’s three segments, linking Athens with Crete, Crete with Cyprus and Cyprus with Israel. Absolute compatibility is essential.

Greek energy minister Costis Hatzidakis, who met yesterday with Euroasia Interconnector’s top officials, emphasized the importance being placed by the newly elected conservative New Democracy government on the project’s swift development.

Fast progress will serve as the main criterion when determining action to be taken, Hatzidakis stressed at the meeting, in Nicosia, adding that, if possible, the support of EU funds would be a bonus. PCI projects are entitled to EU support funds.

IPTO and Euroasia Interconnector have been at odds for control over the development of the project’s Crete-Athens segment. It is needed urgently to prevent a looming energy shortage on Crete as of next year, when old units still operating on the island will need to be withdrawn to align the country with EU environmental policies.

Continuation of energy strategy minister’s guide at Cairo forum

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Recently appointed energy minister Costis Hatzidakis will formally commence work on promoting Greece’s international energy relations at his first meetings abroad, today and tomorrow, at the East Med Gas Forum in Cairo.

The minister, in recent speeches, has already made clear his interest in supporting a national strategy shaped to bolster the country’s energy security, elevate its geopolitical role and fuel economic growth.

Strategic partnerships with Cyprus, the USA, Israel and Egypt will play a pivotal role in this effort.

Greece, Cyprus, Egypt, Israel, Italy, Jordan and the Palestinian Authority will all be represented at the Cairo forum.

Hatzidakis, Greece’s energy minister, is also expected to discuss energy partnerships and regional security with US energy secretary Rick Perry, who is in the Egyptian capital as part of a tour of the east Mediterranean.

Development of the submarine East Med gas pipeline, a project promising security and stability for the wider region, is a leading priority  for Greece.

On a wider level, the minister can be expected to carry on supporting a national strategy pursued over the past decade to establish Greece as a pivotal energy player in the region and key problem solver of regional energy partnership issues.

As for other major energy infrastructure projects, the new Greek government will continue to provide national support for the swift completion of the Trans Adriatic Pipeline (TAP), planned to transport Caspian natural gas to Europe, and the Greek-Bulgarian IGB gas grid interconnector. Other investment plans such as the Alexandroupoli FSRU and the Kavala underground gas storage facility will also keep receiving the support of Greece’s administration.

New EU warning for Turkey over Cyprus EEZ violations

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The EU’s 28 are set to issue a new warning to Turkey today in response to the country’s illegal hydrocarbon exploration activities within Cyprus’ Exclusive Economic Zone (EEZ), diplomatic sources have informed.

EU governments are expected to vow to freeze negotiations over the modernization of the customs union between the bloc and Turkey, while reiterating that accession negotiations have come to a standstill.

The EU-28 will also signal that further escalation is possible, as the EU “stands ready to respond appropriately and in full solidarity with Cyprus,” if drilling activity continues.

The statement, due to be approved by the EU’s European affairs ministers today, is subject to ongoing deliberations between diplomats and the final wording may change.

Greek Prime Minister Alexis Tsipras said on Sunday that he may demand EU sanctions against Turkey over drilling activities.

Ankara is disputing Nicosia’s EEZ rights as Cyprus prepares to drill at offshore gas reserves in the Eastern Mediterranean. Turkey has sent exploration vessels in the area, with Cyprus protesting a violation of its sovereignty.

Greek PCI support for Eurosia conditional, minister suggests

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Greece’s decision to proceed with the development of the Crete-Athens electricity grid interconnection as a national project through power grid operator IPTO’s special purpose vehicle Ariadne rather than as part of a wider Euroasia Interconnector project planned to link the Greek, Cypriot and Israeli grids has cast doubts over the future PCI status of Euroasia’s Crete-Cyprus and Cyprus-Israel segments.

Euroasia Interconnector, a consortium of Cypriot interests heading the wider project, will need the support of all parties involved if the Crete-Cyprus and Cyprus-Israel segments are to secure a place in the EU’s new PCI list, enabling favorable funding, when the updated list is published later this year, in autumn.

Though Greece’s energy ministry has yet to make its intentions clear, it faces pressure, especially from Cyprus, to support the continued PCI-status of the Crete-Cyprus and Cyprus-Israel segments as their development would end Cyprus’ electricity grid isolation.

Greece’s stance will most likely depend on Euroasia Interconnector’s moves and whether it will seek to obstruct the development of the Crete-Athens interconnection through legal procedures and other action.

Energy minister Giorgos Stathakis has suggested Greece’s support for the wider project’s PCI status would be conditional.

IPTO recently decided to remove the Crete-Athens segment from the wider Greece-Cyprus-Israel interconnection project as the operator was embroiled in a dispute with the Cypriot consortium over the local segment’s control.

EDEY to drum up Greek oil, gas hopes at Italy, Romania events

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Spurred by recent significant gas field discoveries at Cypriot and Egyptian offshore blocks and the favorable prospects these have generated for the wider region, top officials at EDEY, the Greek Hydrocarbon Management Company, will be looking to attract major foreign investors to new Greek blocks at two industry events in Italy and Romania.

EDEY chairman Yiannis Basias, who is in Ravenna, Italy today to attend the Offshore Mediterranean Conference & Exhibition, a leading industry event, will be exploring the potential interest of oil majors, including Italy’s ENI, for new offshore blocks in the Ionian Sea and off Crete to soon be licensed out.

EDEY chief’s deputy Spyros Bellas will follow up this effort in Bucharest at the Balkans & Black Sea Cooperation Forum, scheduled to take place April 4 and 5.

Tristan Aspray, ExxonMobil’s Vice President of Exploration for Europe, Russia, and the Caspian, hailed the wider region’s prospects at the recent Delphi Economic Forum in Greece. ExxonMobil is currently involved in exploration work being carried out in Romania.

Speaking earlier this month at London’s Global APPEX (Prospect & Property Expo), an event organized by the American Association of Petroleum Geologists (AAPG), Bellas, EDEY’s deputy, presented a road map of Greece’s hydrocarbon plans for 2019 to officials of foreign companies as well as latest and more detailed geological data on the Ionian Sea and Cretan regions. This data was processed by Norway’s PGS.

The strategy adopted at EDEY is to plan tenders for offshore blocks based on the interest expressed by foreign investors at this series of meetings.

Besides ENI and ExxonMobil, EDEY is seeking to convince Repsol, Shell and other US majors of Greece’s hydrocarbon prospects.