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ELPE submits three bids, for Crete, Ionian, with partners

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Hellenic Petroleum (ELPE) has submitted offers, with partners, for hydrocarbon exploration and exploitation rights concerning three offshore blocks off Crete and in the Ionian Sea, the petroleum group has confirmed in a company statement.

A consortium comprised of Total (40%, operator), ExxonMobil (40%) and ELPE (20%) submitted offers to tenders offering hydrocarbon exploration and exploitation rights for two offshore blocks, west of Crete and southwest of Crete, while a further offer for an Ionian block, offshore western Greece, was submitted by Repsol (50%, operator) and Hellenic Petroluem, ELPE announced.

The offers by ELPE and its partners come as a result of the stated interested for domestic hydrocarbon exploration and production by the Greek petroleum group, it noted in the statement.

In recent years, ELPE has secured upstream rights to specific areas in west Greece: Patraikos Gulf (ELPE 50% operator, Edison 50%), block 2 (Total 50% operator, ELPE 25% and Edison 25%), Arta – Preveza and NW Peloponnese. The company is also negotiating lease agreements for blocks 1 and 10. 

In his statement, ELPE’s chief executive Grigoris Stergioulis pointed out: “As part of ELPE’s group development strategy, we are consistently implementing our decision to be active in the national effort to discover and exploit domestic hydrocarbon reserves. We rely on our competitive advantages, namely the accumulated experience, technical brilliance, know-how and well-rounded understanding of the Greek business environment that our employees possess.

Continuing our successful participation in international tenders in western Greece, and taking into consideration the recent, positive research conducted in the Patraikos area, we submitted three new offers for the offshore blocks in the Ionian Sea and in the southwest of Crete, thus manifesting the ELPE group’s international prestige. We collaborate with top international companies in our sector able to provide the human capital, the ideas, the advanced technology and the financial capability required, so as to successfully face, along with the ELPE group, this unprecedented – for Greek standards – challenge.

It is our desire to leverage international best practice and the most advanced technology available in order to trace potential reserves; such a development will be a game-changer for the ELPE group and our prospects, it will substantially endorse the national economy, and will strengthen the local communities. The group, stronger than ever before, declares its dedication to the preservation of the country’s natural heritage, by implementing the strictest international regulations for the protection of the environment, a position that is non-negotiable for the group.”

 

Ionian Sea Block 2 seismic survey no sooner than next November

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Seismic survey work planned by a consortium comprised of ELPE (Hellenic Petroleum), Total and Edison at Block 2, west of the Ionian island Corfu, cannot take place until at least the end of autumn next year as a result of a delay by Greek Parliament to approve the agreement.

The three-member consortium signed an exploration and exploitation license agreement with the Greek State in late October.

Consortium sources reminded that seismic surveys, needed to identify possible hydrocarbon deposits and drilling targets, can only be performed during specific periods, these being spring and autumn.

As a result of environmental and tourism-related reasons, seismic surveys cannot take place at Block 2 during winter or summer.

Parliamentary approval of Block 2 remains pending, which eliminates any chance of seismic surveys being conducted at this specific license next spring. It is estimated that acceleration of the approval procedure would give the consortium enough time to reserve a specialized vessel, needed for the seismic survey, for November, 2018.

Latest information has indicated that a seismic survey planned for the Gulf of Patras, a license held by ELPE (Hellenic Petroleum), will take place as planned, early in 2019.

Authorities have described the Gulf of Patras as an area of great hydrocarbon potential, based on seismic survey work conducted in the past by DEP-EKY, a former subsidiary of DEP (Public Petroleum Corporation).

In the past, over 70 drilling ventures have been perfomed at various locations in Greece, including the Gulf of Patras and Block 2, reoffered to investors through open-door international tenders. This development essentially served to reopen Greece’s hydrycarbon market to investors.

ELPE, Total, Edison sign deal for Corfu Block 2 exploration

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A consortium comprised of ELPE (Hellenic Petroleum), Total and Edison signed an exploration and exploitation license agreement with the Greek State in Athens today for offshore Block 2, west of the Ionian island Corfu.

Energy minister Giorgos Stathakis described the deal as a turning point and vote of confidence for the Greek economy.

He also spoke of a wider interest in the area by major players, adding that a new tender offering another offshore block in the Ionian Sea, as well as blocks south and southwest of Crete, would soon be published in the Official Journal of the European Union (OJ).

The energy minister took the opportunity to inform that gradual progress is being made on a renewed tender planned to offer 17 offshore blocks that failed to draw investor interest through an initial effort.

“Conditions are now different. The east Mediterranean has found itself at the center of attention, a development that bolsters the significance of today’s agreement,” Stathakis remarked.

He highlighted the knowhow and elevated technological ability possessed by the Block 2 consortium members.

Officials representing all three consortium members at today’s signing ceremony noted they have high expectations for Block 2.

Total’s Bernard Leman, in charge of the French company’s Caspian and south European operations, pointed out that Block 2 could develop into a very beneficial field for the Greek economy and boost the local hydrocarbon market’s future development.

The signing ceremony, organized by the energy ministry, was hosted at the new National Library building in coastal southern Athens. Attendants included French ambassador to Greece Christophe Chantepy and his Italian counterpart Efisio Luigi Marras.

 

ELPE plans to start drilling at pivotal Gulf of Patras block early in 2019

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ELPE (Hellenic Petroleum) intends to stage its first drilling operation at its Gulf of Patras offshore license early in 2019, according to latest information obtained.

This drill’s results are seen as pivotal to future developments, including investor plans and hydrocarbon expectations, for the wider area in this part of Greece.

Prior to the drilling effort at its Gulf of Patras block, ELPE plans to stage additional seismic survey for greater clarity in choosing locations.

In another development, a consortium comprised of Total, Edison and ELPE has moved closer to signing a finalized exploration and exploitation license agreement with the Greek State for offshore Block 2, west of the Ionian island Corfu, following the completion of a pre-contractual inspection by a supervisory committee. The finalized agreement should be signed within the next few days.

The consortium plans to stage new seismic surveys offering greater detail for Block 2.

The agreement’s signing is expected to propel further hydrocarbon sector developments in the wider region.

Greek authorities intend to stage a new international tender to offer additional licenses for Ionian Sea blocks if it is deemed that sufficient investor interest exists.

Total, Edison, ELPE set to sign off-Corfu Block 2 agreement

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A consortium comprised of Total, Edison and ELPE (Hellenic Petroleum) is expected to be granted an exploration and exploitation license for offshore Block 2, west of the Ionian island Corfu, very soon – possibly within the next few days, definitely within the current month.

Procedures entered the home stretch last week when a supervisory committee completed a pre-contractual inspection, offering its approval for the Block 2 agreement.

The process dates back to 2014 when Block 2 was offered to investors as part of a wider international tender. Participants submitted offers in 2015 and, last year, the Total-Edison-ELPE consortium was declared a preferred bidder for hydrocarbon exploration work at the offshore block west of Corfu.

The agreement expected to soon be signed will require Parliamentary approval before the consortium can start work. The team’s effort will begin with new seismic surveys whose sharper data should provide greater detail to help determine drilling locations.

Authorities have high hydrocarbon deposit hopes for Block 2 and the area west of Corfu. Scientists believe the region shares similar geological traits to a geological zone off Italy, where considerable oil deposits have already been identified. The upcoming survey work at Block 2 promises to determine this theory’s validity.

France’s Total, one of the world’s biggest oil compamies, is heading the Block 2 consortium. Italy’s Edison, a partner in the venture, is a member of the EdF corporate group, also French.

Barring unexpected developments, the first round of drilling should take place in approximately three to four years, around 2020 or 2021.

According to forecasts based on existing seismic survey data, Block 2 could contain a deposit amounting to two billion barrels.

Inspection committee endorses ELPE-Total-Edison’s Ionian deal

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A local committee examining an Ionian Sea-Block 2 hydrocarbon exploration agreement between the energy ministry and a consortium comprised of ELPE (Hellenic Petroleum), Total and Edison has completed its work, enabling the investment plan to proceed, energy minister Giorgos Stathakis has told Skai news.

The ELPE-Total-Edison consortium was declared the preferred bidder for this offshore block almost a year ago, last October. Then, in March, the energy minister prepared the agreement reached signed between the two sides, but its approval by an inspection committee was still pending.

This part of the procedure was delayed, prompting Total’s leadership to point out the matter during a meeting between Greek Prime Minister Alexis Tsipras and French entrepreneurs who joined President Emmanuel Macron on his official two-day visit to Athens last week.

Greek Parliament still needs to offer its approval before the Block 2 hydrocarbon exploration agreement is finalized. The government plans to soon submit the agreement to parliament, sources informed.

The Tsipras-led coalition wants the Ionian Sea-Block 2 agreement finalized within 2017 as this would serve the administration’s claims of a positive investment climate being shaped in Greece.

Gov’t to seek French support for PPC sale of lignite units

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The Greek government can be expected to seek France’s support for October’s market test concerning main power utility PPC’s unit sale package, to offer investors 40 percent of the utility’s lignite production capacity, when French President Emmanuel Macron heads a delegation for an official visit to Greece, scheduled for September 7 and 8.

French support would add clout to the market test if EDF or its subsidiary Edison express an interest in state-controlled PPC’s lignite units. The interest so far appears to be limited to firms from China and east Europe.

Greek Prime Minister Alexis Tsipras is expected to raise the issue to Macron during the French leader’s visit.

To date, efforts by Greece’s energy minister Giorgos Stathakis to lure Edison to the prospective PPC sale have failed to produce results. Echoing the thoughts of most pundits and market players, Edison officials have noted that hydropower units would need to be added to PPC’s lignite-only sale package.

Less than a fornight ago, Evangelos Mytilineos, the chief executive of the Mytilineos group, a key player in Greece’s energy market, noted that it will be particularly difficult for PPC to sell a lignite-only package that does not include hydropower units.

At this stage, the Greek government appears adamant on limiting the offer to lignite units, despite being fully aware of the fact that an EU policy for increased emission right costs is subduing investment interest in solid fuels.

At present, PPC lignite-fuled power stations generate electricity at a cost of around 50 to 60 euros per MWh. This cost is expected to skyrocket to about 100 euros per MWh by 2030. Such a prospect will surely keep investors back.

Even if French support for the PPC lignite package sale is limited to October’s market test, when investors will be invited to express non-binding interest, and is not followed up by actual offers in the ensuing international tender, the Greek government will have gained valuable support in its effort, over the past few months, to create a positive picture for the lignite-only sale. Athens could, as a result, contend that the inclusion of hydropower units into the PPC sale is not necessary and, ultimately, gain time against European Commission demands for electricity market reforms targeting PPC’s dominance.

This aim for a delay is the core issue at play. More time would help PPC maneuver and reshape for its future in a drastically changed electricity market. PPC is expected to reduce its retail electricity market share to less than 50 percent by the end of 2019, from a litle over 85 percent at present. The utility’s contraction has fallen behind schedule.

 

 

 

DEPA, Gazprom, Edison agree on Russian supply to Europe

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The head officials of Gazprom, Edison and DEPA, Greece’s public gas corporation, today signeda cooperation agreement envisaging joint efforts aimed at establishing a southern route for Russian gas supplies from Russia to Europe, the three companies announced in a statement.

The document was signed by Alexey Miller, Chairman of the Management Committee of Gazprom, Marc Benayoun, CEO of Edisonand Executive Vice President of EDF forGas and Italy,and Theodoros Kitsakos, CEO of DEPAand Chairman of IGI Poseidon, at the St. Petersburg International Economic Forum 2017 in the presence ofCarlo Calenda, Minister of Economic Development of Italy.

George Tsipras, Secretary General for International Economic Relations at Greece’s Ministry for Foreign Affairs also attended the signing ceremony.

The document envisages joint efforts aimed at establishing a southern route for Russian gas supplies from Russia to Europe, which will run across Turkey and Greece to Italy. The three companies will coordinatethe development andimplementation of the TurkStream projectandof thePoseidon projectfrom the Turkish/Greek border to Italy, in full compliance withrelevantapplicablelegislative framework.In addition, the agreement formalizes the arrangements on expanding cooperation in the field of Russian gas deliveries.

In February, 2016, Gazprom, Edison, and DEPA had signed the Memorandum of Understanding on natural gas deliveries from Russia across the Black Sea and third countries to Greece and from Greece to Italy in order to set up a southern route for Russian gas supplies to Europe.

DEPA, possessing a long presence in Greece’s gas market, constitutes a modern and competitive group of companies with a dynamic presence in the energy sector. It promotes strategic infrastructure in order to supply natural gas at competitive prices from diversified sources and routes with a view to assuming a leading role in the markets of the broader southeast European region.

Edison is a leading Italian and European player in the procurement, production and sale of electricity, provision of energy and environmental services and the E&P sector.

Founded over 130 years ago, Edison has contributed to the country’s electrification and development. Today it operates in Italy, across Europe and in the Mediterranean basin, employing 5,000 people. In the power generation sector, Edison has plants with total capacity of 6.5 GW.

The Poseidon pipeline is an import gas project designed and authorized to connect the Greek and Italian gas systems. The project will be further extended for allowing direct transportation into Italy of gas sources available at the Turkish/Greek borders, substantially contributing to the European energy targets on security of supply.

Last IGB market test, FSRU plan for Alexandroupoli imminent

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The prospective IGB (Greek-Bulgarian Interconnector) project’s third and final market test, entailing the submission of binding bids by gas traders for the allocation of pipeline capacity, appears to be nearing.

The IGB project is directly linked to a plan for the development of a floating LNG termimal in Alexandroupoli, northeastern Greece, as one project would benefit the other.

Bulgaria’s new energy minister Nikolay Pavlov is believed to be maneuvering to make up for lost time as a result of the recent early elections held in Bulgaria. The third-round market test was originally scheduled to take place in March.

In addition, a required FEED (front-end enginnering and design) study concerning the Alexandroupoli LNG terminal is expected to be completed by the summer. This means that Gastrade, the enterprise behind the project, is expected to reach a final investment decision by the end of 2017.

GasLog, a venture headed by shipping magnate Peter Livanos, holds a 20 percent stake in Gastrade. GasLog has transported numerous LNG shipments for US firm Cheniere, interested in exporting gas to Europe via the prospective Alexandroupoli facility.

The Greek city’s floating storage regasification unit (FSRU), supported by the European Commission as an EU project of common interest, which would ensure EU funding, is planned to be developed as a 170,000 cubic-meters facility situated 17.6 kilometers southwest of the Alexandroupoli port.

Returning to the IGB project, a first market test was staged in April, 2016 but was deemed invalid. A second test held last November prompted offers covering 50 percent of the pipeline’s planned capacity, or 1.4 to 1.5 bcm, from DEPA, the Public Gas Corporation, Bulgargaz and Italy’s Edison. All three are involved in the project’s development.

 

 

ExxonMobil talks with ELPE-Total-Edison for Corfu block after Easter

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A prospective meeting between a consortium comprised of Total, Edison and ELPE (Hellenic Petroleum) and ExxonMobil for talks over a possible partnership enabling collaborative exploration of an offshore block in the Ionian Sea, west of Corfu, marked out as Block 2, is expected to take place following the Easter break.

The signing, almost a month ago, of a Block 2 exploration and exploitation license between the consortium and local authorities was reportedly endorsed by Greek Parliament just days ago.

Details concering the roles to be played by the two sides in a prospective partnership for Block 2 are expected to be explored at the upcoming meeting.

In comments made last last month, Yannis Grigoriou, ELPE’s Hydrocarbon Exploration and Production Manager, noted that seismic survey work for Block 2 could be launched by early 2018.

ExxonMobil has been engaged in talks with ELPE for quite some time now to look into the possibility of joining the Greek company for exploration and exploitation work at a total of six blocks licenced to ELPE. The acquisition of new blocks is also being considered. The unexplored offshore region south of Crete is a top priority.

ELPE, Total and Edison were offered a license for Block 2, west of Corfu, last October following the launch of an international tender back in November, 2014. A total of 20 offshore blocks in the Ionian Sea and south of Crete were made available to investors.

Ministry appoints adviser for pending hydrocarbon licenses

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Sofia Stamataki, a professor at the National Technical University and former director at EDEY, the Greek Hydrocarbon Management Company, has assumed an advisory role at the energy ministry to help steer five pending licensing agreements concerning three onshore and two offshore blocks in western Greece towards finalization, energypress sources have informed.

Just days ago, the energy ministry extended – yet again – an appraisal deadline leading to finalized contracts for hydrocarbon exploration and exploitation licenses concerning blocks in the Ionian Sea. Authorities now have until June 30 to finalize agreements.

Highlighting the slow progress, an international tender offering blocks in the Ionian Sea was launched in November, 2014 and ended in July, 2015.

Last October, a consortium comprised of Total, Edison and ELPE was declared the preferred bidder for one of these units, Block 2 in the Ionian Sea, west of Corfu. A final agreement has yet to be signed. Total is this venture’s operator with a 50 percent stake, while ELPE and Edison hold respective 25 percent stakes.

Final agreements also remain pending for blocks awarded to ELPE in the Arta-Preveza and northwest Peloponnese areas, as well as a block granted to Energean Oil & Gas in the Etoloakarnania area.

Gazprom, Edison, DEPA discuss Southern Corridor gas pipeline plan

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Technical matters concerning Russia’s Southern Corridor pipeline project proposal for transmission of natural gas to Europe were discussed at a meeting in Moscow yesterday between the heads of Gazprom, Edison and DEPA, Greece’s Public Power Corporation.

A new memorandum of understanding to provide greater details than a previous MoU signed by the three corporations in Rome last February is being prepared.

Yesterday’s meeting included talks on the optimal route for Russian gas exports to Greece and, by extension, Italy, according to a statement released by Gazprom.

The three sides took into account positions maintained by the European Commission and USA on Russian gas supply to Europe.

At this stage, the main concern of the interested parties is to avoid the mistakes committed for Russia’s previous pipeline proposal, South Stream, which deviated from European Commission regulations.

The sidelined Greek-Italian ITGI Poseidon project, initially planned to carry Azerbaijani natural gas, is expected to be developed and play a key role in the Southern Corridor plan by providing a pipeline link across the Adriatic Sea for the transfer of Russian gas from Greece to Italy. This issue was also on the agenda of yesterday’s talks.

Russian gas exports to Italy rose by 36.5 percent in November compared to the equivalent period last year. Italy is the second-biggest importer of Russian natural gas.

As for a Turkish segment planned to comprise part of the Southern Corridor project, Gazprom signed an agreement, just days ago in Amsterdam, with the Allseas Group, a Swiss-based offshore pipeline installation and subsea construction company for the project’s underwater segment in the east. This section of the pipeline is planned to run from a point close to the Russian city Anapa, on the northern coast of the Black Sea, across the sea, all the way to eastern Thrace, Turkey’s European territory.

 

Gazprom, Edison, DEPA press on for Southern Corridor plan

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After signing a Memorandum of Understanding (MoU) in Rome last February with the aim of developing the Southern Corridor for Russian natural gas supply to Europe, Russia’s Gazprom, Italy’s Edison and DEPA, Greece’s Public Gas Corporation, are now set to take an additional step in this direction.

Leading officials of the three energy companies are scheduled to meet in Moscow next Tuesday to discuss the overall progress made over the past ten-month period and also sign a new agreement containing even greater commitments than last February’s less specific MoU.

Issues expected to be discussed at the upcoming Moscow meeting include the Southern Corridor’s route, dispatch points for Russian gas within European territory, as well as various alternatives available for infrastructure that needs to be constructed.

Of course, the build-up to next Tuesday’s meeting does not mean that European Commission and US doubts about the Southern Corridor have faded. Both are looking to diversify Europe’s energy sources and lessen Russia’s dominance. Instead, the meeting indicates the determination of Gazprom, Edison and DEPA to coordinate their efforts and assess the project’s obstacles, exacerbated by the bad precedent set by South Stream, a previous Russian gas pipeline plan that ended up sinking as a result of the EU’s negative response.

Gazprom’s CEO Alexey Miller, in recent comments, noted: “We will decide – at the Moscow meeting – on how we will go about working on the project. It concerns the transportation of natural gas via Turkey and the Greek-Turkish border as well as construction of new pipelines on European territory, all the way to southern Italy.”

 

Addition of Turkey’s Botas to Southern Corridor plan implied

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Though not specifically named during yesterday’s Greek-Russian energy conference in Athens, Botas, Turkey’s state-run crude oil and gas company, may join Russia’s Gazprom, DEPA, the Greek Public Gas Corporation, and Italian energy firm Edison as a fourth partner in the Southern Corridor project, an extension of the Turkish Steam plan, to supply Russian natural gas to the wider region.

Other European countries are likely to also express an interest in the project, which would increase the chances of Brussels approving the plan.

DEPA chief executive Theodoros Kitsakos reminded conference participants that a three-party memorandum of understanding (MoU), involving Gazprom, DEPA and Edison, was signed last February. He noted that all studies, including cost studies, have been carried out, while also adding that a “fourth partner is likely to join in” as the Russian gas supply line will probably run through Turkey.

Kitsakos described the project’s plan as fully sustainable and respectful of EU principles. “We hope development begins in 2017 and that the project is completed between 2019 and 2020,” he remarked.

Energy minister Panos Skourletis noted that talks recently resumed on this prospective Russian gas supply channel to Europe, via Greece and Italy. “We believe the plan may serve the EU’s strategic objective of reinforcing energy security and offering competitive pricing,” Skourletis commented. “We consider the Russian government’s stance of wanting to promote the project only when EU regulations have been met, in order for it to proceed without interruption, as a very constructive approach,” he added.

The energy minister said the trio of partners, as a follow-up to February’s MoU, are now looking at solutions concerning source diversification and routes. “This discussion is expected to widen and involve other countries so that the project may represent part of the overall picture concerning European energy supply in the future,” Skourletis noted. “Forecasts indicate that energy needs will increase in Europe. Now is the time to shape the new plans that will effectively meet these future needs.”

ELPE partners for Ionian block exploration waiting for green light

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Total and Edison, ELPE’s (Hellenic Petroleum) partners in a consortium established for exploration work at a block in the Ionian Sea, have hung on despite a delay in the final approval of their license by local authorities.

ELPE’s sound cooperation with its partners and incentives offered by the current market conditions have been vital in the patience shown by Total and Edison.

In two weeks from now, an international tender offering offshore exploration and exploitation licenses in the Ionian Sea, western Greece, and south of Crete, will have clocked up precisely two years since its launch.

Bids were submitted in July, 2015. ELPE and its consortium partners were awarded Block 2. The investors have since awaited the green light to begin exploration work before making important investment decisions on whether to conduct drilling or not.

Their patience shown so far cannot be considered a given. For example, Petroceltic withdrew from a venture concerning a license in the Gulf of Patras as a result of company changes and lower oil prices.

The consortium members for the Ionian Sea’s Block 2, which have pledged budgets for the project, are requested to reconfirm their interest every three months.

The signing of contracts and approval by a parliamentary committee are the next important steps. The investors hope this stage will be swiftly completed so as to enable them to launch survey work by next summer.

Vessels needed for survey work are currently in ample supply while research costs have been halved compared to two years ago. Both these factors offer added incentive to the investors.

ELPE officials believe that offshore exploration remains a feasible and profitable prospect despite the lower international crude oil prices.

 

 

 

 

PPC, Edison talks not yet over, officials to meet at conference

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Italian energy company Edison, already producing about 12 percent of Greece’s national electricity output through Elpedison, a joint venture also involving Hellenic Petroleum (ELPE) and Ellaktor, has not given up the prospect of establishing a partnership with main power utility PPC, despite recent claims by the latter’s boss ruling out the prospect.

In comments offered last week, PPC’s chief executive Manolis Panagiotakis said talks with Edison for a possible partnership would not continue, adding that negotiations are “now being held with others”.

Edison’s executive vice president Roberto Poti, who will be part of the same panel with Panagiotakis at an Economist conference next week, is likely to take the opportunity and raise the prospect of a PPC-Edison partnership. If so, a new response from the PPC boss, and any ensuing dialogue, could shed light on the matter.

PPC is looking to form partnerships as part of its strategy to counter a bailout-required market share reduction.

The PPC chief, in his comments last week, explained that talks with Edison for a partnership concerning development of the Melitis 2 power station in Florina, northern Greece, could not continue as the French EDF group, which controls Edison, does not invest in lignite units. According to Panagiotakis, Edison had made an offer to PPC.

The Greek power utility chief’s position does not represent the stance of the Greek government, which favors the establishment of partnerships as a means of avoiding any forced sales of PPC units. This could be prompted if bailout demands aiming to further liberalize the country’s electricity market, by subduing PPC’s current dominance in production and supply, are not met.

Local market officials agreed with Panagiotakis’s remarks on EDF, noting that the French corporate group is not interested in investing in lignite, adding that this is the case with most European energy companies due to CO2 emission reduction obligations.

The local officials added that establishing a partnership purely for the development of a new power unit is not a usual tactic in the sector as joint ventures usually have broader objectives.

ITGI route revived as DEPA, Gazprom, and Edison sign memorandum

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A memorandum of understanding (MOU) for the development of a natural gas pipeline to link Greece and Italy and serve as a route for supply of Russian gas to Europe through the Southern Corridor was signed yesterday evening by the chief executives of Gazprom, Edison, and DEPA, Greece’s Public Gas Corporation – Alexey Miller, Marc Benayoun, and Theodoros Kitsakos, respectively.

The signing cermenomy took place in Rome following a meeting between Miller and Federica Guidi, Italy’s economic development minister.

The Greek Foreign Ministry’s Secretary General for International Economic Relations, Giorgos Tsipras, a cousin of Greek Prime Minister Alexis Tsipras, attended the signing ceremony.

The memorandum of understanding, indicating an intended common line of action, reflects the interest of all three sides to develop infrastructure that may carry Russian natural gas through the Black Sea, via transit countries, to Greece and then Italy.

The interested parties plan to utilize, to the greatest degree possible, work already completed by DEPA and Edison for the sidelined ITGI Poseidon project.

DEPA and Edison had originally established Poseidon as a joint venture in the previous decade to develop the ITGI pipeline, planned to carry Azeri natural gas from Turkey to Greece and then Italy, via a submarine crossing through the Adriatic Sea. However, the the plan was abandoned after Azerbaijan opted to develop the TAP (Trans-Adriatic Pipeline) project instead for this purpose.

“The revival of the ITGI Poseidon project reinforces Europe’s energy security with an additional supply route and upgrades Greece’s important role as a significant natural gas gateway, via diversified sources and routes,” remarked Kitsakos.

Italian minister’s refugee crisis visit to include energy matters

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Italian foreign minister Paolo Gentiloni’s emergency visit to Athens today, prompted by the refugee crisis, will also include energy matters on its agenda.

A series of meetings scheduled during Gentiloni’s whirlwind visit to the Greek capital include one with energy minister Panos Skourletis. The Italian minister will be accompanied by four Italian energy company executives who intend to remind Skourletis of their interest in doing business in Greece.

According to sources, an official representing Terna will point out that the company remains interested in buying a stake of IPTO, the power grid operator, regardless of whether this is a 20 percent stake the government plans to offer to a strategic investor or a 66 percent share if the Greek government’s proposal is not approved by the country’s lenders. Many officials believe rejection of the government’s IPTO plan cannot be ruled out.

An Edison official is expected to remind of the company’s interest for stakes in units owned by PPC, the main power utility. The company favorably views PPC chief executive Manolis Panagiotakis’s intention to establish partnerships with other European companies for PPC-related projects. However, the Edison official is expected to underline that hydropower plants will need to be included in the overall package.

An Eni representative will raise a compensation issue concerning the premature end of the company’s regional natural gas market monopolies in Thessaloniki and Thessalia, prompted by bailout-related gas market reforms. Eni holds 49% stakes in the Thessalia and Thessaloniki EPA gas supply companies. DEPA, the Public Gas Corporation, holds majority 51 percent stakes in both.

An Enel official is expected to point out the company’s interest to increase its presence in Greece’s wind energy market.

Though no officials representing Snam have joined the Italian delegation, Gentiloni, Italy’s foreign minister, will highlight to Skourletis the Italian company’s interest in acquiring a 17 percent equity share of DESFA, the gas grid operator. Azeri energy company Socar, the winning bidder of an international tender offering 66 percent of DESFA, needs to surrender 17 percent following European Commision intervention.

Total, joined by ELPE, Edison, bids for Ionian Sea block

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French multinational oil and gas giant Total has submitted an offer as the key member of a consortium also involving ELPE (Hellenic Petroleum) and Italy’s Edison for exploration rights of an offshore block in the Ionian Sea, west Greece, Reuters has reported, basing its information on comments made by ELPE officials.

The report noted that the offer concerns a block designated as Block 2 in the Ionian Sea, west of Corfu, while specifying that Total heads the consortium.

According to information, ELPE has submitted additional offers for Blocks 1 and 10 in the wider area without any other co-bidders. Block 1 is located northwest of Corfu and Block 10 lies southeast of Zakynthos.

The energy ministry has not yet made any official announcements on the tender concerning these offers.

ELPE, Edison acquire Petroceltic stake in Gulf of Patras license

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Hellenic Petroleum (ELPE) and Italy’s Edison now control an offshore licence in the Gulf of Patras, western Greece, as a 50-50 joint venture following the departure of Irish oil company Petroceltic Resources Plc from the consortium in which the three companies held equal shares.

ELPE has released a statement announcing that negotiations between the consortium’s members have concluded for the transfer of Petroceltic’s 33.3 percent share to ELPE and Edison. The agreement is subject to the energy ministry’s approval, the announcement noted.

“We are pleased to announce that ELPE has agreed to acquire half the share, increasing its stake to 50 percent, while Edison has acted likewise, following the intention of Petroceltic Resources to transfer all its rights in the Gulf of Patras licence,” remarked Grigoris Stergioulis, ELPE’s managing director. “We will continue to implement our strategy in the field of hydrocarbon exploration and production, focusing on Greece. Research work in the Patras area is continuing seamlessly, without delay, with the objective of discovering oil in this promising area as soon as possible,” he continued.

Stergioulis noted that 3D geophysical survey work would be conducted as the venture’s next step by UK firm Dolphin Geophysical, to use a newly acquired vessel for the operation.