Hellenic Petroleum (ELPE) has decided to limit its presence in Greece’s upstream sector, driven by unfavorable market developments, sources have informed.
Spain’s Repsol recently also opted to surrender upstream rights in Greece.
ELPE intends to return to the Greek State its exploration and production licenses for two onshore blocks, Arta-Preveza and northwest Peloponnese, sources noted. The Greek petroleum company has deemed exploration activities in these specific areas as no longer being feasible, the sources added.
The company, in reaching its decision to withdraw from the Arta-Preveza and northwest Peloponnese blocks, also took into account negative reactions by local community groups as well as a series of bureaucratic obstacles, sources said.
The Greek State’s failure to deal with a lack of infrastructure at the port of Patras, close to these blocks in Greece’s west, is seen as a key factor in ELPE’s decision to withdraw from the Arta-Preveza and northwest Peloponnese blocks, despite promising seismic research results.
ELPE does not intend to surrender its interests in offshore blocks west and southwest of Crete. It is a co-member of consortiums with Total and ExxonMobil for these licenses.
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