EDEY hydrocarbon plans presented by chief in Greek Energy 2017 article

EDEY, the Greek Hydrocarbon Management Company, is focusing its efforts on promoting the multiple hydrocarbon prospects presented by Greece, currently producing crude at just one field, the company’s recently appointed chairman Yiannis Basias notes in an article appearing in Greek Energy 2017, an annual energypress industry publication.

“Our aim is to revitalize Greece’s oil and gas sectors having first created an organization that possesses deep knowledge on technical, legal and financial aspects concerning the counry’s hydrocarbon sector,” notes Basias, who was appointed head of EDEY last November for a five-year term.

The EDEY head notes that, as part of the effort to build a formidable team, the hydrocarbon company has, since December, 2016, been appointing well-trained young PhDs from Greece and around the world, as well as equally qualified officials made available by Greek ministries.

This staffing procedure has moved swiftly to date and is planned to continue throughout 2017 and 2018, Basias informs, adding that, at present, EDEY maintains a ten-member team possessing the credentials to talk on equal terms with prospective investors.

“We need to create a technical team that knows what we’re looking and negotiating for,” Basias stresses in the Greek Energy 2017 article. “We can’t succeed in negotiations if we do not know what out objectives are. Otherwise, negotiations usually end up being dominated by legal and financial matters.”

The priority at EDEY over the next few months will be to study and promote Greek offshore and onshore locations that have yet to attract the interest of investors, Basias points out.

A total of 17 blocks, still available following a previous Greek hydrocarbon tender, appear to be drawing the interest of major investors, the EDEY chief notes, adding that the discovery of the giant Zohr gas deposit in Egyptian territory by Eni has turned the industry’s attention to the wider east Mediterranean region, including western Greece, where the geological features are believed to be similar.

The area south of Crete is also a key part of EDEY’s wider plans and is generating interest despite complex geological conditions, Basias informs in the article. Subsequently, EDEY has signed a partnership agreement with the Technical University of Crete. It includes a seismic data simulation program concerning west Crete as well as the creation of a hydrocarbon data bank for all of Greece.

 

EDEY presents new hydrocarbon objectives at Texas event

EDEY, the Greek Hydrocarbon Management Company, plans to promote seismic surveys covering 83,000 square meters, the company’s recently appointed new chairman Yiannis Basias informed an industry event staged in Texas yesterday. Greek market opportunities were highlighted to investors.

EDEY officials presented three new seismic survey projects to be promoted by the hydrocarbon company.

Complementary 3D scans covering 26,000 square meters along Corfu’s southwest, west and northwest, are included in the EDEY plan.

It also features complementary 3D scans for an 11,000 square-meter offshore expanse stretching from a region south of Mani, past Kythira, and all the way down to western Crete.

Another prospective seismic survey covering 46,000 square meters is planned for an offshore area south of Crete.

The objective of the hydrocarbon company is to make the most of a current favorable investment climate, internationally, for the wider east Mediterranean region. EDEY wants to promote investments in regions that had been largely neglected in the past as a result of high extraction costs.

These costs have fallen in more recent times as a result of technological advancements in exploration activity. Also, oil prices are managing to hold – marginally – at levels offering sustainability.

The EDEY chief highlighted that 17 of 20 Greek offshore blocks offered through an international tender back in 2014 remain available to investors.

Of the 17 available blocks, it is believed that ten possess great potential to attract investor interest.

Besides the aforementioned areas, EDEY is also working on promoting exploration in the wider Macedonia region of northern Greece. Considerable survey data has already been accumulated for the area.

Areas for prospective exploration in Greece’s north include the Thermaic Gulf and the sea region west and east of Prinos. Onshore areas in Thrace, northeastern Greece, are also being considered.

The new EDEY leadership has expressed satisfaction over the energy ministry’s favorable response to its renewed exploration drive as well as a proposal by the hydrocarbon company for new legislation leading to revised exploration contracts.

 

EDEY expects developments concerning its seismic survey plans over the next two to three months.

EDEY planning new seismic surveys, reinterpretation of older data

EDEY, the Greek Hydrocarbon Management Company, is considering to conduct seismic surveys in three regions, two of these for a second time as a result of the need to clarify  findings of previous efforts.

The company deems that new scans are required for areas south of Corfu and south of Crete as the results of the respective initial surveys conducted by Norwegian company PGS require greater detail.

According to the hydrocarbon company’s new chairman Yiannis Basias, a 3D scan could also be conducted in an area between Crete and the Peloponnese. PGS had not conducted a survey here.

EDEY hopes these initiatives will attract investors for exploration as was the case three years ago when Italy’s Enel had expressed an interest to explore and exploit three offshore blocks in western Greece before stepping back.

Despite providing an incentive for local authorities to stage international tenders, Enel ended up not submitting any bids as a result of a series of factors, including bureaucratic delays and the drop in international oil prices.

Even so, the EDEY chief believes that the Italian company’s retreat should not discourage further efforts. Basias noted that sufficient investor interest could soon be generated to warrant a return of seismic survey vessels within the next 6 to 12 months.

“We are more mature now, have learnt from our mistakes and omissions and know precisely why companies did not take part in the previous tenders,” noted Basias.

The recent discovery, by ENI, of the Zohr field, a giant gas deposit in Egyptian waters, is proving to be a game changer that is encouraging reinterpretaions of older surveys in the wider region.

 

 

New hydrocarbon licenses offering bigger blocks now in the making

EDEY, the Greek Hydrocarbon Management Company, is pushing for swifter finalization of pending exploration and exploitation agreements and also preparing to stage new tenders offering bigger blocks over the next year.

As was recently reported by energypress, EDEY has decided to reprocess data collected from seismic surveys conducted in 2012 in the Ionian Sea and areas south and east of Crete.

EDEY intends to stage tenders offering prospective investors bigger and more enticing offshore blocks than those offered in a previous round held back in 2014. The latest overall drive highlights EDEY’s renewed interest in exploring and utilizing Greece’s hydrocarbon potential.

The hydrocarbon company is currently seeking to appoint a consultant as an associate for guidance in negotiations and the establishment of new hydrocarbon exploration and exploitation licenses.

In another indicator of the heightened interest shown lately by Greek authorities in the hydrocarbon sector, just days ago, the energy ministry finalized a license agreement offering Block 2, off the Ionian island Corfu, to a consortium comprised of ELPE, Total and Edison.

The energy ministry plans to restage tenders for 17 blocks in the region that had failed to draw investor bids during the previous round of 2014. Some of these blocks may be joined to increase their size and increase the attraction for prospective investors.

Besides Block 2, investors submitted bids for just two other offshore licenses – Block 1, close to the Greek-Albanian border, and Block 10, in Kyparissia, western Peloponnese – during the previous round.

 

EDEY interested in reprocessing older data for utilization

EDEY, Greek Hydrocarbon Management Company, is currently engaged in talks with Norwegian firm PGS for the latter to reprocess data it had collected though a seismic survey in 2012 in the Ionian Sea as well as south and east of Crete. EDEY wants to examine whether this data may be utilized by prospective hydrocarbon exploration investors.

According to energypress sources, the older data needs to be reprocessed as a result of the discovery of Zohr, an enormous natural gas field off the Egyptian coast, a development that has revised and widened the regional strategies of hydrocarbon exploration firms.

EDEY is already looking into updating its software so as to be adequately equipped for the data reprocessing effort. Hydrocarbon exploration firms will be offered access to the company’s new information system.

Since the appointment of a new chairman, Yiannis Basias, EDEY has recruited a team of highly qualified officials covering fields such as law, engineering, geology and economics.

The EDEY board is keen to lift any exisiting bureaucratic obstacles and accelerate the finalization of pending licensing agreements with preferred bidders for five blocks – three onshore and two offshore – which would boost the company’s revenue and support its ability to perform tasks.

Extra staff, increased funds for hydrocarbon company

A draft bill submitted to Greek Parliament last Friday includes amendments to bolster the role and authority of EDEY, the Greek Hydrocarbon Management Company.

The bill, submitted to satisfy EU directives on safety matters concerning offshore exploration and exploitation work, includes an amendment that will give EDEY authority to sign for new agreements, receive payments for offering exploration and exploitation rights, and facilitate new hirings from the public sector.

EDEY will be able to recruit between between five and ten new personnel members from the public sector and extend their contracts once, for a further three years.

 

EDEY budget for the year one of positive expectations

EDEY, the Greek Hydrocarbon Management Company, expects to achieve a budget surplus of 43,000 euros in 2016, restricted by significant recruitment costs planned for the year, expected to reach 780,000 euros for hirings of new personnel.

The company expects revenues in 2016 to total 1.783 million euros. The majority of this, 1.45 million euros, is forecast to be generated by services offered, including contract signings and contract commission fees, while the remaining 333,000 will be provided by grants.

EDEY represents the Greek state in hydrocarbon matters, monitoring the implementation of hydrocarbon exploration and exploitation agreements signed in Greece.

Despite the sector’s adverse conditions that have resulted from the major slide in crude prices over the past year and a half or so, a development that has subdued the higher market expectations cultivated during previous years, EDEY continues to play a key role both as a monitoring agency and in matters concerning sector strategies.

The company oversees licenses signed, or about to be signed, for exploration and expoitation work at blocks around Greece, such as Katakolo, Ioannina, Gulf of Patras, Prinos, and twenty offshore blocks in western Greece and south of Crete.

Besides monitoring current contracts, EDEY is also active in paving the way for future plans. Although activity in the global oil industry has been severely struck by lower crude prices, this is a fluctuating market of ups and downs. The Greek state needs to be fully prepared to act as fast and decisively as possible when the market begins moving again, a prospect that may not be too far away. EDEY’s role is crucial in this department.