A pandemic-related extension request made by Spain’s Repsol for an additional six-month period to complete preliminary research concerning a license in Ioannina, northwestern Greece, has been granted by EDEY, Greek Hydrocarbon Management Company, in a decision reached last week that resets the deadline for April 2, 2021.
Repsol, operator of a consortium formed with Energean Oil & Gas for the Ioannina license, had lodged its extension request late in August.
Repsol’s preliminary research work at the Ioannina license was initially expected to be completed by early October ahead of a decision on whether it would proceed with drilling.
The pandemic has severely impacted the upstream industry worldwide. Multinationals engaged in hydrocarbon research and production activities have severely limited their investment plans as a result of the pandemic’s impact on petroleum markets.
A rebound for the upstream sector appears highly unlikely any time soon given the rising second wave of coronavirus cases.
The EDEY extension will enable Repsol to conduct a more thorough analysis of seismic data collected and enable the company to hold on for the prospect of improved upstream industry conditions.
EDEY justified its extension by noting it will help the investors complete their assessment of technical work conducted during the preliminary stage.