ELPE

Italy’s Edison determined to keep 50% stake in Elpedison

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Italy’s Edison does not intend to sell its 50 percent stake in energy retailer Elpedison to its partner in the joint venture, Helleniq Energy, formerly named Hellenic Petroleum (ELPE), a representative of the Italian company has indicated following latest talks between highly ranked officials of the two sides in Athens earlier this week.

Helleniq Energy and Edison, preparing to end a 15-year association as equal partners in energy firm Elpedison, are currently evaluating prospective offers for the other side’s 50 percent, but neither side has revealed any price tag.

The partner to offer the biggest sum is expected to take full control of Elpedison, estimated to be worth between 400 and 500 million euros, according to market officials.

Helleniq Energy’s CFO Vassilis Tsaitas and his Edison counterpart Ronan Lory were joined by other company officials from both sides for the meeting in Athens earlier this week.

The Italian company appears determined to remain in the Greek market for further investments in Elpedison that could make the energy retailer competitive again, an Edison official indicated.

The Greek government is keeping a close watch on developments as the Greek State holds a 31.18 percent stake in Helleniq Energy through TAIPED, the Greek privatization fund. Paneuropean Oil & Industrial Holdings, a member of the Latsis group, is the main shareholder with a 40.41 percent share.

Should Helleniq Energy acquire Edison’s 50 percent stake in Elpedison, it could opt to sell the company to another corporate group, Mytilineos being the likeliest potential buyer, sources believe.

Evangelos Mytilineos, chairman and CEO of the Mytilineos energy and metals group, has set a 30 percent market-share target for his corporate group’s energy retailer Protergia by 2026. The supplier currently holds a 15.08 percent share and Elpedison’s share is at around 6 percent.

 

Helleniq Energy, Edison continue talks to part ways on Elpedison

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Helleniq Energy, formerly named Hellenic Petroleum (ELPE), and Italy’s Edison are preparing to end a 15-year association as equal partners in energy firm Elpedison.

Officials of both companies are currently evaluating prospective offers for the other side’s 50 percent. The partner to offer the biggest sum is expected to take full control of Elpedison.

Helleniq Energy will seek to acquire Edison’s 50 percent stake in Elpedison and may then opt to sell the energy firm to another corporate group, Mytilineos being the likeliest potential buyer, sources have informed.

During a presentation at the recent Delphi Economic Forum, Helleniq Energy’s CEO Andreas Siamisiis spoke extensively on a 4 billion-euro investment plan at the group’s refineries in Athens and Thessaloniki but made no mention of Elpedison.

This omission has further fueled speculation that Helleniq Energy may be preparing to sell Elpedison if it acquires partner Edison’s stake in the company.

Elpedison holds a portfolio of just under 316,000 customers in Greece’s retail energy market and two power plants offering a total capacity of 820 MW.

Edison executives will be in Athens on Monday for a new round of discussions with Helleniq Energy officials, the sources noted.

Officials of the two sides have already met on numerous occasions to discuss details of their nearing separation. However, a top-level meeting between the CEOs of Helleniq Energy and Edison, Andreas Siamisiis and Nicola Monti, respectively, has yet to take place.

The Greek State will also have a say in the matter as it holds a 31.18 percent stake in Helleniq Energy. Paneuropean Oil & Industrial Holdings, a member of the Latsis group, is the main shareholder with a 40.41 percent share.

Greek-North Macedonian oil pipeline relaunch back on track

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A Greek-North Macedonian oil pipeline, out of use over the past decade, appears to be back on track for a reopening following such a step’s approval by the neighboring country’s regulatory authority.

The pipeline’s owner, Vardax, a subsidiary of Helleniq Energy, formerly named Hellenic Petroleum (ELPE), had submitted a request in November, 2022 for the pipeline to be put back into operation, but the pending issue had remained unresolved.

Helleniq Energy CEO Andreas Siamisiis revealed the news of the North Macedonian regulatory authority’s approval of his company’s request for the pipeline’s reopening in an interview with Greek daily Kathimerini.

The pipeline was developed in 2002 to link the Greek company’s Thessaloniki refineries with its OKTA refinery in North Macedonia.

In 2013, the Greek energy group decided to change the use of the pipeline for the transport of clean products. However, it has remained dormant until the present as a result of the delayed new license, despite the modification of infrastructure.

The pipeline is fully ready to operate, Siamisiis, the Helleniq Energy CEO, has stressed. A comprehensive inspection of the pipeline was recently completed, extending its operating ability to June, 2051.

Helleniq Energy intends to transport diesel fuel through the pipeline once it is reopened.

If reopened, the pipeline, whose current capacity measures 2.5 million tons, annually, promises to offer multiple benefits for both Greece and for the energy group.

Energy security and sufficiency in the wider Balkan region would be reinforced, while Greece’s role as an important regional energy hub would be enhanced, the Helleniq Energy CEO pointed out.

 

Energy firms dominate Fortune 500 Europe list’s top spots

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European energy firms have bounced back, as highlighted by their dominant rankings on the first-ever Fortune 500 Europe list, published yesterday.

The Fortune 500 Europe list dispels myths about the continent and also reads like a throwback to the 20th century, when energy and automotive industries were the prime players in the global economy – and companies were led by men.

The list’s top spot is held by British energy giant Shell, with six energy companies and three automotive companies featuring in the top 10. This is starkly different to the US list, where three Big Tech companies—Amazon, Apple, and Alphabet—feature in the top 10. In Europe, the largest pure tech company is SAP, at No. 114, followed by 1990s powerhouses Ericsson (No. 141) and Nokia (No. 147).

One would have to go back to the late 1990s to find a Fortune 500 akin to what the Fortune 500 Europe looks like today. Twenty-five years ago, GM topped the US list with Ford and Chrysler not far behind, and Exxon, Mobil (and GE, to a lesser extent) representing the energy sector in the top 10.

The list of Europe’s largest companies, based on revenue, includes four Greek energy companies, Motor Oil, at No, 213, Helleniq Energy, formerly Hellenic Petroleum (ELPE), at No. 243, power utility PPC, at No. 298, and Mytilineos, at No. 444.

On the diversity front, too, Europe lags the US. Just 7 percent of Fortune 500 Europe companies are led by a woman, compared to 10 percent on the US list, a statistic that questions the continent’s progressive image.

The Fortune 500 Europe list includes companies from 24 different countries, ranging, in size, from Germany’s MTU Aero Engines, with revenues of $5.6 billion, at No. 500, to London-based oil and gas giant Shell ($386.2 billion) at No. 1.

Combined, the 500 European companies generated $13.94 trillion in revenue in the most recent fiscal year.

 

Helleniq Energy ‘monitoring’ Lukoil refinery sale in Bulgaria

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Helleniq Energy, formerly Hellenic Petroleum (ELPE), is keeping a close watch on the sale process of Russian multinational energy corporation Lukoil’s refinery in Bulgaria, CEO Andreas Siamisiis has told analysts during a presentation of the Greek energy group’s 3Q and nine-month results.

Bulgarian finance minister Asen Vasilev recently told Financial Times that Lukoil is in the process of selling the only refinery in the neighboring country.

According to Siamisiis, political considerations, not just business decisions, are behind Lukoil’s decision to sell this asset in Bulgaria. Rumors of the refinery’s sale had circulated over the past year and a half, the Helleniq Energy chief executive added.

Though Helleniq Energy’s Vision 2025 strategy does not include major investments in refineries, the energy group is monitoring the sale of the Lukoil refinery in Bulgaria given its location in a neighboring region, Siamisiis pointed out.

As for Helleniq Energy’s diversification into renewables, the group has already built up 356 MW in facilities now operating, company officials informed. A further 700 MW in RES facilities are at various stages of development, which puts the group on target for 1,000 MW by 2025 and 2,000 MW by 2030, the officials added.

 

DEPA Commercial privatization set back, ELFE case continues

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A long-running legal dispute between gas company DEPA Commercial and fertilizer industry ELFE is set to enter yet another chapter estimated to add between one or two years to the ordeal, following a decision by the Council of State, Greece’s Supreme Administrative Court, to revert the case to an Athens Appeals Court for retrial.

This delay is sure to further undermine the DEPA Commercial privatization plan, which has been put on hold by Greek privatization fund TAIPED as a result of the ongoing legal battle between the gas company and ELFE, as well as the energy crisis.

ELFE filed a case with the Council of State in February, 2022 to challenge an Athens Appeals Court verdict in favor of DEPA Commercial over an alleged debt amount of 120 million euros owed by the fertilizer industry to the gas company.

ELFE maintains the right to take its case back to the Supreme Court should the Athens Appeals Court rule against it in the new hearing.

Should ELFE be vindicated, highly unlikely, according to pundits, then other DEPA Commercial customers can be expected to also take legal action, for overcharging, against the gas company. Such a development would further complicate the privatization plan for DEPA Commercial.

TAIPED, the privatization fund, controls 65 percent of DEPA Commercial, while Helleniq Energy, formerly known as Hellenic Petroleum, holds a 35 percent stake. The two shareholders, as previously reported by energypress, have planned to combine efforts for a bourse listing of DEPA Commercial.

Two alternatives for DEPA Commercial bourse listing

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Two primary alternatives being considered for the privatization of DEPA Commercial, a process that seems to have regained momentum, seem to be the most probable courses of action, sources have indicated.

Both options being considered would result in DEPA Commercial’s listing on the Athens stock exchange.

Through one of the two possible alternatives, DEPA Commercial’s two shareholders, privatization fund TAIPED, holding a 65 percent stake in the gas company, and Helleniq Energy, formerly named Hellenic Petroleum, would each contribute portions of their equity in DEPA Commercial for its entry into the Athens bourse.

The other alternative being examined would entail the sale of Hellenic Petroleum’s 35 percent stake in DEPA Commercial to the Greek State, which, in turn, would make this equity available on the bourse.

DEPA Commercial’s privatization plan had been put on hold as a result of the energy crisis and an ongoing legal battle between the gas company and fertilizer industry ELFE.

The Greek State has intervened in the gas market, through DEPA Commercial, to implement measures designed to control gas prices and secure energy sufficiency.

Extra 20% of ‘undervalued’ Helleniq Energy to be listed

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Greek privatization fund TAIPED and the Latsis group’s Paneuropean Oil & Industrial Holdings, the two main shareholders of Helleniq Energy, formerly named Hellenic Petroleum (ELPE), appear to have decided to list a further 20 percent stake of the company’s shares on the Athens stock exchange.

TAIPED currently holds a 35.48 percent stake of Helleniq Energy, and Paneuropean Oil & Industrial Holdings holds 17.4 percent, while 17.4 percent of Helleniq Energy’s shares are already being traded on the Athens bourse.

Discussion regarding the additional allocation of a bundle of Helleniq Energy shares on the Athens stock exchange began as part of broader strategy pursued by the privatization fund to optimize the company’s shares that are publicly traded.

A further privatization effort in 2019 did not succeed and, since then, TAIPED has sought the best possible way to exploit this asset.

According to sources, the privatization fund and Paneuropean Oil & Industrial Holdings will each contribute 10 percent stakes in Helleniq Energy to the listing.

The intention of this move is not to lure a strategic investor but, instead, to increase the company’s free float, the sources added.

Just months ago, Helleniq Energy’s management suggested the company’s share price does not reflect the true value of the energy group. Also, the company’s restructuring and Vision 2025 investment plan, now being implemented for greater emphasis on green-energy activities, have so far failed to boost the share price of the energy group.

The latest plan, sources noted, will seek to deliver more goodwill to shareholders and reflect the group’s true value on the board.

Helleniq Energy moves on to next stage for licenses in west

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Helleniq Energy, formerly named Hellenic Petroleum (ELPE), has successfully completed a first stage of seismic surveys at two offshore licenses, Ionio, in the Ionian Sea, and Block 10 in the Gulf of Kyparissia, west of Peloponnese, and is following up with a second round of exploration activity, EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, has announced.

Helleniq Energy, possessing full ownership of both licenses, has just officially launched its second round of surveys at Ionio and Block 10.

The second-round survey work at Ionio entails collecting and processing 3D seismic data and conducting geological work and environmental studies for an area covering a total of 900 km2. At Block 10, Helleniq Energy plans to collect and process 3D data and also conduct petrophysical and geophysical analyses over 400 km2.

EDEYEP chief executive officer Aristofanis Stefatos commented: “We welcome Helleniq Energy’s decision to formally enter the next phase of exploration in the Ionian Sea and Block 10. We have already built a very good cooperation, which we are confident will continue during phase two. We are particularly pleased that the company has responded with exceptional speed to the Greek government’s request for a swifter exploration schedule concerning the natural gas fields, and we look forward to the rapid completion of phase two, with the same level of dedication for the protection of the environment and marine life. With our investors, we share the belief that the exploitation of our natural resources will boost the country’s economic growth and enhance its energy security, and we are working together to achieve the energy transition to a strengthened and sustainable energy system.”

Helleniq Energy planning solar farm for Thessaloniki refinery

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Helleniq Energy, formerly named Hellenic Petroleum (ELPE), plans to fully cover the electricity needs of its Thessaloniki refinery with green energy through the development of a major-scale solar energy farm that will be directly linked to the refinery.

The solar energy farm is planned to be located in Thessaloniki’s wider area, facilitating its link with the refinery.

Helleniq Energy also intends to install standalone batteries for energy storage when the solar farm’s green energy is not instantly used by the refinery.

The use of hydrogen as a means of chemical storage of excess electricity generation is also being considered. In practice, this means megawatt-hours not consumed at the same time will be used to produce renewable hydrogen through electrolysis, which will later be used as fuel for electricity generation via fuel cells when there is no production from the solar energy facility, or when production to meet the refinery’s electricity needs is insufficient.

Helleniq Energy is determined to make its refineries energy-independent as electricity supply issues that have arisen over recent years have seriously impacted the energy group’s refineries.

The company is also considering installing a high performance heat and power cogeneration unit at its refinery in Elefsina, west of Athens, to fully cover this facility’s energy needs.

 

Helleniq Energy planning power supply firm for Cyprus

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Helleniq Energy, formerly Hellenic Petroleum (ELPE), is planning a double entry into the Cypriot energy market, as, besides its investment plans in the RES sector, the company is also preparing to launch a subsidiary active in electricity supply to businesses and industries.

For the time being, Helleniq Energy does not appear to be  planning to also enter the residential electricity market.

Helleniq Energy recently acquired two solar energy farms on Cyprus. “This investment, along with the establishment of our new electricity supply company in the Cypriot market, enables us to offer integrated energy solutions to our clientele and, at the same time, contribute to the acceleration of the country’s energy transition,” noted Andreas Siamisiis, CEO at Helleniq Energy.

These two Helleniq Energy initiatives in the Cypriot market are being developed in coordination as the electricity production stemming from the solar parks, offering a total capacity of 15 MW and annual green energy capacity estimated at over 27,000 MWh, will be received and marketed by the company’s prospective electricity supply subsidiary, sources informed energypress.

Helleniq Energy is backed by a two-decade presence in Cyprus’ fuel market, through its EKO Cyprus subsidiary, represented by a network of 97 petrol stations. EKO Cyprus is the country’s market leader with a market share of over 32 percent.

Helleniq Energy plans to develop a Cypriot RES portfolio totaling 100 MW.

 

Energean expecting 3D survey results for Block 2 within ’23

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International hydrocarbon exploration and production company Energean expects to receive the results of a 3D seismic survey conducted by PGS last November at offshore Block 2 license, west of Corfu and reaching the marine border with Italy, within 2023, probably in the second half of the year, energypress sources have informed.

Energean heads a consortium also involving Helleniq Energy, formerly Hellenic Petroleum (ELPE), for this license.

Once the PGS findings have been received, Energean, depending on the prospects, may go ahead with exploratory drilling in 2024.

Energean expects to begin drilling sooner at its onshore Ioannina block, in the country’s northwest, as this license is at a more advanced stage. The company is currently writing up its response to observations raised, during consultation, on this venture’s environmental impact.

Energean may commence drilling at the Ioannina block in 2024 if an environmental permit is issued by autumn, a best-case scenario.

Helleniq Energy CEO Andreas Siamisiis has informed that no investment decisions are expected in 2023 for the company’s other offshore licenses, off Crete and in the Ionian Sea.

Viohalco third energy-intensive producer to leave PPC

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Metal processing company Viohalco, one of Greece’s biggest electricity consumers, has become the third industrial producer to move away from power utility PPC after establishing an electricity supply agreement with independent producer Heron, company sources have told energypress.

Viohalco’s decision to part ways with PPC as its supplier follows departures by ELPE (Hellenic Petroleum) and the Mytilineos group’s Aluminium of Greece, though this latter company’s move away has not yet been completed.

ELPE was the first energy-intensive producer to leave PPC after the two sides failed to reach a supply agreement in 2021. ELPE ended up establishing a supply agreement with Elpedison, in which it holds a 50 percent stake as part of a 50-50 venture with Edison.

Aluminium of Greece, the country’s biggest electricity consumer, is primarily supplied its energy needs by group subsidiaries Protergia and Watt+Volt. The producer aims to have completely ended its reliance on PPC for energy supply by 2024.

An existing supply agreement between PPC and Aluminium of Greece remains valid but is the last following a 60-year association, a development aligned with the Mytilineos group’s green-energy goals for its production of aluminium.

Meanwhile, other major producers, among them some of the country’s biggest energy consumers, have reached advanced talks with PPC to establish 10-year, green-energy power purchase agreements, through PPC subsidiary PPC Renewables.

 

Elpedison set to finalize decision for Thessaloniki CCGT

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Helleniq Energy, formerly ELPE, and Edison are close to finalizing an investment decision for the co-development, by their Elpedison partnership, of an 826-MW CCGT, or gas-fueled power station, in Thessaloniki.

Elpedison’s shareholders are expected to reach an investment decision for the 826-MW CCGT in May, sources have informed. Preliminary work linked to this project has already begun at Helleniq Energy’s refineries.

This prospective CCGT was one of the first new-generation projects to have been licensed by RAE, the Regulatory Authority for Energy, back in 2019. However, despite the time that has since elapsed, the partnership’s shareholders had held back on an investment decision.

The country’s decarbonization plan, and its scope, was one issue that troubled company shareholders,

The Elpedison CCGT is fully licensed in terms of environmental, town planning and other requirements.

Despite its early licensing, other CCGT projects of the same class have jumped ahead and are already being developed in various parts of Greece.

The Mytilineos group has already launched an 826-MW CCGT in Agios Nikolaos, Viotia, northwest of Athens. GEK TERNA and Motor Oil have joined forces for an 877-MW Thermoilektriki Komotinis gas-fueled power station. More recently, power utility PPC, DEPA Commercial and Damco Energy reached an investment decision to develop an 840-MW gas-fueled facility in Alexandroupoli, northeastern Greece.

 

DEPA Commercial staging solar farm tenders for its RES entry

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Gas company DEPA Commercial, preparing to also venture into the renewable energy sector with solar farms offering a total capacity of 550 MW, plans to announce tenders for the development and installation of these facilities within the next three months, energypress sources have informed.

DEPA Commercial will look to attract construction companies with experience and knowhow in the RES sector. At this stage, DEPA Commercial officials are considering the number of tenders to be staged.

The total budget for these solar farm projects is expected to reach an estimated 400 million euros. Incentives for swifter project completion will be incorporated into the tenders.

The bulk, or 450 MW, of DEPA Commercial’s 550-MW in solar farms is planned to be developed in the Kozani area, northern Greece. One of these units, expected to offer 400 MW, will be among Greece’s biggest. DEPA Commercial’s remaining 100 MW is planned to be developed in the Viotia region, northwest of Athens.

Helleniq Energy, formerly named ELPE, and PPC Renewables are also developing major-scale solar farms.

DEPA Commercial, whose entry into renewables comes as part of the company’s plan to vertically integrate, intends to follow-up its initial lot of 550-MW in solar farms with an additional 150 MW in RES projects, still awaiting connection terms.

Crete hydrocarbon hopes lifted by initial seismic survey results

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Initial findings of ongoing seismic surveys conducted at licenses off Crete have raised hopes of significant hydrocarbon discoveries, government officials have told an event staged by EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company.

If the upbeat prospects generated by emerging data are confirmed during drilling, then quantities to be extracted off Crete will cover Europe’s projected energy insufficiencies, government officials contended on the sidelines of the EDEYEP event, staged last night to mark its transition from EDEY, the Greek Hydrocarbon Management Company.

A recent report released by IEA, the International Energy Agency, notes Europe will face annual energy shortages of 30 billion cubic meters for ten years, even if renewables, biogas and hydrogen are brought in to replace Russian natural gas quantities.

Norwegian company PGS is currently conducting 2D surveys at offshore blocks west and southwest of Crete on behalf of ExxonMobil and Helleniq Energy, formerly ELPE.

Local authorities expect drilling at these licenses to commence in early 2025.

Domestic upstream activity has increased, EDEYEP president Rikard Skoufias told the company event, noting seven seismic surveys have been staged in Greece over an eight-month period compared to just two over the past decade.

 

PM rules out new tender for hydrocarbon licenses

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Prime Minister Kyriakos Mitsotakis, fielding questions at a news conference yesterday, ruled out the possibility of any new international tender for additional licenses concerning onshore or offshore hydrocarbon exploration.

“We are not considering exploring other areas,” the Prime Minister informed, responding to a related question.

Reignited hydrocarbon exploration activity for natural gas deposits in Greece had generated rumors the government would consider staging additional tenders to grant new licenses for exploration south of Crete as well as at an offshore area between the island and the Peloponnese.

Commenting on the progress of surveys being conducted west and southwest of Crete by a consortium comprised of ExxonMobil and Helleniq Energy, formerly ELPE, the Greek Prime Minister said a clearer picture is expected towards the end of the year.

The ExxonMobil-Helleniq Energy consortium may extend the duration of its 2D seismic surveys at these blocks until the end of the first quarter to collect additional data. This could result in greater clarity and enable the consortium to skip the need for 3D surveys.

Elsewhere, Energean and Helleniq Energy are also pressing ahead with respective licenses in the Ionian Sea. Both companies have completed seismic surveys and expect to have received results towards the fourth quarter.

Energean holds a license for an offshore block northwest of Corfu and Helleniq Energy holds two licenses, Ionio and Kyparissiakos (Gulf of Kyparissia).

 

Bureaucracy, elections troubling upstream sector in Greece

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ExxonMobil, Energean and Helleniq Energy, formerly ELPE, all conducting hydrocarbon surveys at Greek licenses, have not only stuck to their schedules but even taken initiatives to speed up procedures for sooner-than-expected drilling. Even so, two factors beyond their control, namely bureaucracy and imminent elections, may hold up their plans.

Energean skipped 2D surveys at its Block 2 offshore license in the Ionian Sea’s northwest, moving straight on to 3D surveys.

Hellenic Energy moved swiftly in 2022 to complete 2D and 3D seismic surveys at two offshore licenses, Ionio and Block 10, both in the Ionian Sea.

ExxonMobil is considering to start drilling sooner than originally planned at its offshore Cretan licenses. As a result, it is staging more comprehensive 2D surveys for a clearer picture of geological details.

State bureaucracy is an obstacle for upstream companies operating in Greece. The overall procedure concerning social and environmental impact studies, which require energy ministry approval ahead of drilling, requires at least eight months to be completed.

Then, upstream companies usually require a further six months or so to make arrangements for drilling rigs, configure sites and identify a port or base area for their drilling rigs.

The uncertainty created by the upcoming Greek elections, expected within the first half of the year, is another factor troubling the efforts of upstream companies.

 

Fuel sales up 2 percent in 2022, higher heating fuel prices in ‘23

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Retail fuel sales rose by a marginal 2 percent in 2022, compared to the previous year, a rise attributed to higher auto and heating fuel demand.

Gasoline sales fell by 2 percent, compared to 2021, the biggest drop occurring in the second half of 2022, which, however, was offset by higher demand for diesel and heating fuel, market officials noted.

Demand for auto diesel increased by an estimated 3.5 to 4 percent, driven higher by the country’s continuing rise in tourism, as well as by the economy’s robust performance in 2022.

Heating fuel demand increased as a result of lower prices compared to other heating sources. Heating fuel sales increased by 6 percent as consumers rushed to make the most of government subsidies, ahead of cuts, and discounts offered by refineries.

The finance ministry cut heating fuel subsidies by 10 cents per liter, reducing state subsidies for this fuel to 15 cents per liter from 25 cents per liter.

Also, according to sources, Helleniq Energy, formerly ELPE, will not continue offering a discount of 0.0375 euros per liter for heating fuel to suppliers in the new year.

The combined effect of these revisions is expected to lead to a gradual rise of 14 cents per liter in heating fuel retail prices.

 

 

 

ExxonMobil drilling for gas off Crete may begin a year earlier

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ExxonMobil could begin drilling at licenses offshore Crete a year earlier than planned as the American energy giant tends to adopt a more direct approach when exploring for natural gas, sector authorities have noted.

Such was the case at Cyprus’ Block 10, for which ExxonMobil conducted seismic surveys before skipping the 3D survey stage to go straight ahead with drilling that led to the discovery of the Glafkos deposit, the officials pointed out.

A consortium comprised of ExxonMobil and Helleniq Energy, formerly ELPE, holds licenses for two offshore Crete blocks, one west of the island, the other southwest. The consortium has commissioned PGS to conduct 2D seismic surveys at both these licenses. They are in full progress and are expected to be completed towards the end of January.

According their original plan, ExxonMobil and Helleniq Energy planned to follow up with 3D surveys at the end of 2023 or early in 2024. However, if ExxonMobil, the consortium’s operator, opts to skip the 3D surveys, initial drilling offshore Crete will begin sooner, in 2024, instead of 2025.

Elsewhere, in the Ionian Sea, a consortium made up of Helleniq Energy and Energean expects to have the results of 3D surveys at three blocks, Ionio, Kyparissiakos, and Block 2, by the end of 2023 or early in 2024. It will then decide if it will continue with initial drilling.

 

Helleniq Energy set for 3D surveys at licenses in west

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Helleniq Energy, previously named Hellenic Petroleum (ELPE), is expected to begin conducting 3D seismic surveys at two offshore licenses, Ionio, in the Ionian Sea, and block 10 in the Gulf of Kyparissia, west of Peloponnese, within the next few days.

A Navtex for both endeavors has already been issued. PGS, commissioned to conduct the seismic surveys, will use its Ramform Hyperion seismic vessel. It will roll out twelve cables covering 8-km distances to scan sea beds for possible natural gas deposits.

The Ramform Hyperion seismic vessel appears to have completed work at the Ionian Sea’s block 2, adjacent to Italian territory in the Adriatic Sea, on behalf of a consortium comprising Energean and Helleniq Energy.

The vessel collected data from an area covering 2,000 square kilometers. Survey work at block 2 commenced in late October.

According to a Hellenic Hydrocarbons and Energy Sources Management Company (HEREMA) schedule, blocks 2 and 10 are expected to be ready for drilling by early 2024. Helleniq Energy conducted 2D surveys at both blocks last February.

 

 

 

Helleniq Energy set for 3D surveys off Greece’s west

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Helleniq Energy is preparing to conduct 3D seismic surveys at two licenses, block 10 in the Gulf of Kyparissia, west of the Peloponnese, and the “Ionio” block in the Ionian Sea, within the next few weeks, chief executive Andreas Siamisiis has told analysts during a presentation of the group’s financial results for the nine-month period.

Helleniq Energy, which recently underwent a name change from ELPE (Hellenic Petroleum), had previously conducted 2D surveys at these two blocks last February. Its decision to take a step further with 3D surveys at the two licenses suggests a clearer picture of promising targets already identified is needed.

The energy group’s decision to move ahead with its hydroexploration plans reflects the overall determination of the government, HEREMA, the Hellenic Hydrocarbons and Energy Resources Management Company, and investors to press ahead with exploration programs to identify potential targets with natural gas reserves.

Elsewhere, Energean is pushing ahead with its survey work at block 2 in the Ionian Sea, adjacent to Italian territory in the Adriatic Sea.

In addition, an ExxonMobil-led consortium involving Helleniq Energy as a junior partner is moving rapidly with survey work at two offshore block licenses west and southwest of Crete.

 

Offshore Crete seismic surveys pave way for drilling in 2025-26

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A consortium headed by ExxonMobil plans to begin conducting seismic surveys at licenses south and southwest of Crete this winter, Prime Minister Kyriakos Mitsotakis announced yesterday, confirming previous energypress reports.

The timing of the prospective surveys is in line with a schedule announced earlier this year by HEREMA, the Hellenic Hydrocarbons and Energy Resources Management Company, which envisaged surveys for the winter of 2022-2023.

The seismic surveys are expected to be followed by higher-definition 3D surveys in 2024. If all goes according to plan, initial drilling at the offshore Cretan blocks could take place in 2025 and 2026, which, if successful, would result in development of hydrocarbon deposits in 2027, leading to production in 2029.

ExxonMobil increased its stake in a consortium holding licenses for two offshore Cretan blocks following a recent decision by France’s TotalEnergies to withdraw from the venture. ExxonMobil acquired TotalEnergies’ share to now hold a 70 percent share in the consortium as the venture’s operator. Helleniq Energy, formerly named ELPE, is the venture’s junior partner.

Older seismic surveys conducted in 2015 by Norway’s PGS for Helleniq Energy – operating, at the time, as ELPE – at the two offshore Cretan blocks south and southwest of the island showed promising signs of a major natural gas deposit.

 

Natural gas, heating oil retail prices level for November

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The recent plunge in international gas prices appears to have neutralized a retail price advantage that had been gained by heating oil, made possible by generous subsidies. Natural gas and heating oil are now at similar price levels for November.

Though natural gas suppliers have yet to announce retail prices for November, their price levels for the month are widely expected to remain unchanged compared to October, at a level of between 11 and 12 cents per KWh.

Besides a subsidy offered by gas utility DEPA, gas prices are also shaped by the TTF benchmark average of the previous month. Amsterdam’s TTF benchmark ended October at levels of between 135 and 145 euros per MWh, well below levels of 200 to 210 euros per MWh a month earlier.

In response, DEPA has greatly reduced its subsidy for consumers from 9 cents per KWh to 2.5 cents per KWh. Deducting the reduced 2.5 cent subsidy results in a retail natural gas price of 11 to 12 cents per KWh.

Heating oil will also be sold at roughly this level, or marginally higher, announcements made yesterday by the country’s refineries and their retail arms, for an extended period of heating oil subsidies, have shown.

ELPE announced it would extend its 6 cent heating oil subsidy (7.5 cents with VAT) until November 15, while Motor Oil informed it will continue offering a price as competitive as that of October.

As a result, consumers can expect heating oil to be priced at less than 1.40 euros per liter for at least another 15 days.

ExxonMobil-Helleniq Energy seismic surveys off Crete

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US oil and gas corporation ExxonMobil has been conducting seismic surveys under complete secrecy and at a rapid pace over the past week or so at two offshore block licenses, west and southwest of Crete, held with Helleniq Energy, formerly named ELPE, as its junior partner.

The two blocks share similar geological traits with Egypt’s giant offshore Zohr gas field and, according to early estimates, may contain rich natural gas quantities.

American presence is being assured, through ExxonMobil, in the southeast Mediterranean region at a particularly critical geopolitical period, both because of the Russian invasion of Ukraine and Turkey’s provocative moves against Greece (aggressive rhetoric and the Libya pact), political analysts told energypress.

ExxonMobil acted swiftly to increase its stake in a consortium holding licenses for the two offshore Cretan blocks following a recent  decision by France’s TotalEnergies to withdraw. ExxonMobil acquired TotalEnergies’ share to now hold a 70 percent share in the consortium as the venture’s operator.

The ExxonMobil-led seismic surveys off Crete, which began on October 24, are being conducted by Norway’s PGS and the company’s Sanco Swift seismic vessel. It is conducting 3D surveys, meaning ExxonMobil is focusing on specific areas for possible natural gas deposits.

HELLENiQ ENERGY heating oil discount, price below €1.40/lt

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HELLENiQ ENERGY, formerly ELPE (Hellenic Petroleum), has decided to offer an additional discount to heating oil suppliers that will result in a retail price for households of less than 1.40 euros per liter, estimated to reach between 1.37 euros and 1.39 euros per liter. These price levels that take into account a state subsidy of 0.25 euro per liter.

The company plans to offer a further discount of 5 percent by November 21, which, if implemented, will lower the retail price of heating oil to 1.33 euros per liter.

Until early yesterday evening, heating oil retailers had set price levels of between 1.44 euros and 1.49 euros per liter, while, earlier in the week, projections had forecast price levels of between 1.50 euros and 1.55 euros per liter, now seriously undercut.

HELLENiQ ENERGY based its decision to offer an additional discount on a strategy support residential consumers challenged by high energy costs and higher living costs in general.

 

RAE approvals steps towards new FSRUs off Corinth, Thessaloniki

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RAE, the Regulatory Authority for Energy, has approved Elpedison’s Thessaloniki FSRU project as well as the final phase of a market test for Motor Oil’s FSRU plan, Dioryga Gas, off Corinth, west of Athens.

For Elpedison, the authority’s approval essentially signals the go-ahead for the Thessaloniki FSRU (floating storage unit) as the decision awards a 50-year project license until 2072.

A 50-50 joint venture involving Elpedison’s two partners, Edison and HELLENiQ, formerly known as Hellenic Petroleum (ELPE), the Thessaloniki FSRU will be developed at the Thermaic Gulf, just a few kilometers from Dock 6 at Thessaloniki port.

The Thessaloniki FSRU, planned to consist of four storage tanks offering a total of 170,000 cubic meters, is scheduled to be launched in 2025.

Besides approving guidelines for the final phase of Motor Oil’s market test concerning the Dioryga Gas FSRU project off Corinth, RAE also approved a capacity boost for this project, to 210,000 cubic meters from 170,000 cubic meters, as had been specified in the project’s original license, as well as Diorygas Gas’ transfer to Motor Oil’s MORE subsidiary, also hosting the petroleum group’s RES projects.

 

Some investors behind CCGTs stalling, others forging ahead

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Energy crisis uncertainty and the singling out of natural gas for its exorbitant price levels are factors troubling investors behind new combined cycle gas turbine (CCGT) plant projects.

Some investors have stalled their CCGT investment plans, waiting to see how developments unfold concerning gas prices and availability, while, on the other hand, more aggressive players are forging ahead.

Elpedison has yet to reach an investment decision on a new 860-MW CCGT at the company’s Thessaloniki refinery facilities. Despite having begun some preliminary work, Elpedison’s partners – HELLENiQ ENERGY, until recently named Hellenic Petroleum (ELPE), and Edison – have put their Thessaloniki CCGT project on hold to appraise international and European energy market developments.

If developed, Elpedison’s prospective 860-MW Thessaloniki facility would add to the joint venture’s two existing facilities. The HELLENiQ ENERGY petroleum group is also planning an FSRU at the Thermaic Gulf, which would establish a Thessaloniki hub for the company.

The Copelouzos group has also been troubled by the adverse market conditions. Group member Damco Energy had secured a license for an 840-MW CCGT in Alexandroupoli, northern Greece, but the high cost of natural gas and overall market uncertainty prompted the company to not go it alone and seek partners for the project.

According to sources, power utility PPC and gas company DEPA Commercial have joined Damco Energy for the Alexandroupoli CCGT. Official announcements on the partnership are expected soon.

Elsewhere, the GEK TERNA and Motor Oil groups have begun working on an 877-MW CCGT in Komotini, northeastern Greece. The former, in its publication of first-half results, noted work on the “Thermoilektriki Komotinis” project is continuing, its scheduled launch unchanged for 2024.

 

 

 

 

 

ELPE, renamed HELLENiQ ENERGY, looks to triple RES capacity in 1 ½ yrs

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The chief executive of Hellenic Petroleum (ELPE), which has taken on a new name, HELLENiQ ENERGY, unveiled at a company event in Athens yesterday, took the opportunity to underline the enterprise’s interest in the renewable energy market and RES takeovers abroad, the objective being to triple its green portfolio in 18 months.

HELLENiQ ENERGY’s chief executive, Andreas Siamisiis, informed that the company is currently progressing with two RES company takeovers in foreign markets, without specifying in which countries.

According to sources, one of these two HELLENiQ ENERGY takeovers is in Italy, while the other is in one of Greece’s neighbors along the northern border.

The HELLENiQ ENERGY head told the company event that the Greek market is too small for RES takeovers, adding deals abroad serve the group’s interest to expand.

HELLENiQ ENERGY’s current portfolio of operating RES facilities is at 340 MW, which the company aims to increase to 1 GW within the next year and a half. Its RES portfolio, overall, totals 2 GW.

Crete’s Hydrocarbon Potential to be Unveiled by the End of 2023⏐Upstream Development Programme in Full Swing⏐HEREMA’s Role in the Advancement of Offshore Windfarms

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Greece’s upstream exploration programme offshore Crete is proceeding without delays, with a first assessment of the two concessions’ natural gas potential expected by the end of 2023. This was the message delivered by the CEO of the Hellenic Hydrocarbons and Energy Resources Management Company (HEREMA), Aris Stefatos, during a press conference held alongside the company’s Chairman Rikard Scoufias. 

Following the withdrawal of TotalEnergies earlier this year from the blocks dubbed “West of Crete” and “Southwest of Crete”, U.S. energy giant ExxonMobil significantly upped its stake in both concessions, raising this from 40% to 70% for E&P activities, while also assuming the operatorship. Likewise, Greece-based Hellenic Petroleum increased its participation in both areas from 20% to 30%.

ExxonMobil has prepared an upgraded work programme for the first phase of upstream exploration activities – anticipating faster and higher quality results – with delivery expected within a 2-year period instead of the 3 years companies have at their disposal for said exploration stage.

According to Stefatos, any delays in the Cretan concessions can be attributed to the fact that the previous operator did not complete the minimum work programme within the stipulated three-year term. He added that HEREMA’s exploration program is well underway, in accordance with the company’s underlying strategy “Hydrocarbons 2.0”, underpinned by three pillars:

  • Accelerating the development of Greece’s upstream sector with a particular focus on natural gas.
  • Expanding the scope of HEREMA to new energy technologies that can support Greece’s country’s energy transition.
  • Strengthening governance and ensuring HEREMA has the capacity and resources to meet all aspects of its mandate.

Regarding the first pillar, in February 2022 the leadership of HEREMA launched an ambitious investor outreach programme targeting energy majors.  The company’s management noted that the results so far have being particularly encouraging.

Discussions are ongoing with companies that have expressed an interest in entering the Greek upstream sector, with priority being placed on concessions where there is a single investor. While Mr. Stefatos confirmed that another licensing round is not off the table, he stressed the importance of drawing in investors to pre-existing concessions.

HEREMA is also set to play a key role in the development of offshore wind parks in Greek seas, in accordance with its legally expanded work scope, leveraging upon the company’s wealth of expertise in offshore operations. It’s important to underline that offshore oil and gas installations boast strong similarities to the platforms used in offshore wind installations. To this end, the company is being strengthened with specialized technical personnel and the relevant logistical infrastructure to enable it to deliver upon its expanded remit.

HEREMA has been carrying out one-to-one discussions with interested parties, including potential domestic and foreign investors, in an effort to understand their concerns and priorities – deemed key for the development of Greece’s newly-established offshore wind sector. Last but not least, HEREMA recently inked a memorandum of cooperation with the Hellenic Centre for Marine Research (HCMR) focused on technical and environmental synergies.

Within the scope of new energy technologies, HEREMA’s expanded work scope additionally includes the licensing of carbon capture and storage (CCS) and underground gas storage (UGS) projects in Greece. Such projects could focus on the storage of natural gas and hydrogen in the future.  

Imminent key challenges 

While assessing key challenges moving forward, HEREMA’s Board of Directors underlined the importance of maintaining the momentum built during the last 12 months, while ensuring the company is provided with the necessary administrative and financial resources. Strengthening HEREMA’s capacity and resources is a primary challenge and will become even more critical as the company assumes its broader remit including natural gas storage, CO2 and greenhouse gas management, and supporting the offshore wind sector. It is noted that draft legislation for the modernization of HEREMA has been ready for adoption since January 2021 and will contribute to the creation of a more modern and efficient administrative framework.

More specifically, the board concludes “This is an important factor in maintaining investor confidence, but most importantly it serves to build an organisation with the staff, resources, and expertise required to manage a Greek “Hydrocarbons 2.0” programme that should only be initiated once the financial and human resources are in place to monitor and enforce the strictest standards for environmental protection and socio-economic impact management.”