EDEY to drum up Greek oil, gas hopes at Italy, Romania events

Spurred by recent significant gas field discoveries at Cypriot and Egyptian offshore blocks and the favorable prospects these have generated for the wider region, top officials at EDEY, the Greek Hydrocarbon Management Company, will be looking to attract major foreign investors to new Greek blocks at two industry events in Italy and Romania.

EDEY chairman Yiannis Basias, who is in Ravenna, Italy today to attend the Offshore Mediterranean Conference & Exhibition, a leading industry event, will be exploring the potential interest of oil majors, including Italy’s ENI, for new offshore blocks in the Ionian Sea and off Crete to soon be licensed out.

EDEY chief’s deputy Spyros Bellas will follow up this effort in Bucharest at the Balkans & Black Sea Cooperation Forum, scheduled to take place April 4 and 5.

Tristan Aspray, ExxonMobil’s Vice President of Exploration for Europe, Russia, and the Caspian, hailed the wider region’s prospects at the recent Delphi Economic Forum in Greece. ExxonMobil is currently involved in exploration work being carried out in Romania.

Speaking earlier this month at London’s Global APPEX (Prospect & Property Expo), an event organized by the American Association of Petroleum Geologists (AAPG), Bellas, EDEY’s deputy, presented a road map of Greece’s hydrocarbon plans for 2019 to officials of foreign companies as well as latest and more detailed geological data on the Ionian Sea and Cretan regions. This data was processed by Norway’s PGS.

The strategy adopted at EDEY is to plan tenders for offshore blocks based on the interest expressed by foreign investors at this series of meetings.

Besides ENI and ExxonMobil, EDEY is seeking to convince Repsol, Shell and other US majors of Greece’s hydrocarbon prospects.

 

 

Crete exploration license by May, minister assures ExxonMobil deputy

Exploration and production agreements for two offshore blocks west and southwest of Crete awarded a year-and-a-half ago to a consortium comprising ExxonMobil, Total and ELPE (Hellenic Petroleum)  will be ratified in Greek parliament by May, the latest, energy minister Giorgos Stathakis has assured a leading ExxonMobil official.

Tristan Aspray, ExxonMobil’s Vice President of Exploration for Europe, Russia, and the Caspian, has apparently accepted the minister’s commitment with satisfaction, but this remains unconfirmed.

The two officials met on the sidelines of the Delphi Economic Forum, a high-profile four-day event that ended yesterday.

Consortium officials have begun showing signs of frustration over the slow-moving licensing procedure for the two offshore Crete blocks.

In a carefully worded statement, the US Ambassador to Greece, Geoffrey R. Pyatt, who also attended the forum, noted he was eager to see the bureaucratic delays come to an end so that exploration work off Crete could commence.

The tender for the two offshore Crete blocks was launched in December, 2017. The ExxonMobil-Total-ELPE consortium submitted its bid in March, 2018 before it was endorsed four months later. If parliament ratifies the related licenses in May, the entire procedure will have taken 18 months to complete.

ELPE bidders given exemption right for ELPE Upstream costs

Potential buyers participating in a sale offering a controlling 50.1 percent stake in ELPE (Hellenic Petroleum) will be given the option of being exempted from hydrocarbon exploration-related expenses concerning ELPE Upstream, a separate division holding ELPE’s hydrocarbon exploration and concession rights.

A 51 percent stake of ELPE Upstream will remain under the control of the state. Potential buyers will have the right to refuse to partake in ELPE Upstream’s investment activities, given the minority stake they will hold in this venture.

This cost exemption option appears to have satisfied potential buyers of ELPE’s 50.1 percent, preparing to submit binding bids, possibly within the first ten days of March. A deadline has yet to be set.

Head representatives, including Sonatrach boss Abdelmoumene Ould Kaddou, have spent time in Athens over the past couple of weeks for meetings with Greek state privatization fund TAIPED officials. No objections appear to have been raised.

Sonatrach recently entered the ELPE sale, joining Vitol as a partner. American firm Carlyle, the other new entry, has joined forces with Glencore for this sale.

All of ELPE’s current exploration and production licenses have been transferred to ELPE Upstream.

Ministry committee receives Crete hydrocarbons impact study

An environmental impact study concerning offshore hydrocarbon exploration activity planned for south and southwest of Crete has been forwarded to a special energy ministry committee by EDEY, the Greek Hydrocarbon Management Company, following a related public consultation procedure.

This special committee is now in the process of assessing the study before delivering its findings to energy minister Giorgos Stathakis for authorization. Once signed by the minister, the environmental study, along with licensing agreements drafted for offshore plots in the aforementioned regions, will be sent to a supervisory committee for a final legality check before heading to parliament as a draft bill for ratification.

Speaking at the Athens Energy Forum yesterday, Stathakis, the energy minister, estimated that licenses offered for Crete, as well as the Ionian Sea, would be submitted to parliament in approximately two months.

A consortium comprising Total, ExxonMobil and ELPE (Hellenic Petroleum) has been awarded licenses around Crete, while Repsol and ELPE have secured a license for an Ionian Sea block.

Both investment teams are hoping for a swift completion of bureaucratic procedures to commence their exploratory work as soon as possible.

Major China petrochemicals event in March, registration starts

Visitor online registrations have commenced for the 19th China International Petroleum & Petrochemical Technology and Equipment Exhibition, a world-leading trade fair for petroleum and petrochemical, scheduled to take place March 27-29, 2019 at the New China International Exhibition Center in Beijing.

To feature 1,800 exhibitors, including 46 enterprises from the Fortune Global 500, the event promises insight on subjects such as oil, gas, pipeline, petrochemical, shale gas, offshore engineering technology as well as explosion-proof systems.

Participants will also have the opportunity to network with 117,000 professional visitors from over 65 countries and regions, communicate with 18 international pavilions, and hear from industry experts at the summit and forum program.

For more information, visit the event’s official website http://en.cippe.com.cn/, http://www.chinamaritime.com.cn/en/ or email yolanda@zhenweiexpo.com.

EDEY presenting five new fields in search for more investors

EDEY, the Greek Hydrocarbon Management Company, is seeking to draw an increased level of attention from petroleum firms for natural gas and oil exploration through five new offshore blocks, located in the Ionian Sea, off Crete and south of the Peloponnese.

The five blocks, ranging from 8,000 to 22,000 square kilometres in size, were presented yesterday by EDEY chairman Yiannis Basias at a workshop organized by IENE, the Institute of Energy for Southeast Europe.

EDEY has reprocessed related seismic survey data concerning these five blocks and plans to present findings at international conferences and meetings with the objective of generating the interest of oil majors.

The Greek hydrocarbon company’s latest initiative comes at a time of elevated activity among southeast Mediterranean, Black Sea and Adriatic countries, all staging tenders for blocks or conducting surveys and drills.

Global oil industry players have turned their attention to the wider region. Total, ExxonMobil, Repsol and Edison have already established a presence on Greek territory. EDEY is hoping to add to the list.

Energean shares begin trading on Tel Aviv Stock Exchange

The shares of independent oil and gas exploration and production company Energean Oil and Gas have begun trading on the Tel Aviv Stock Exchange (TASE) secondary list, the group has announced in a statement.

Energean is the first London-listed, international oil and gas operator to list shares on the Tel Aviv bourse, following the largest E&P IPO in London since 2014.

Delivery of Energean’s highly attractive, flagship Karish and Tanin gas development, offshore Israel, remains on track for first gas in 1Q 2021 providing energy security and supplying gas to the Israeli domestic market.

Energean is currently at the start of an active 18-month period including first steel cut for Energean’s FPSO, the only FPSO in the East Mediterranean, scheduled for 26 November 2018, and drilling of the high potential Karish North well to commence in March 2019, with the potential to de-risk up to 1.8 TCF of resources across Karish North and Karish East.

In addition, during this 18-month period, Energean will continue to de-risk its wider Israeli portfolio which has 7.5 Tcf of gross prospective resources across the Karish and Tanin leases and Blocks (12, 21, 22, 23 and 31) and pursue future gas sales contracts, to target both the growing Israeli domestic market and key export markets in the region, with a view to delivering value to all stakeholders. Energean is also focusing on an ongoing investment and development program to increase production from its Prinos and Prinos North oil fields and to develop the Epsilon oil field, located in the Gulf of Kavala, northern Greece.

Energean has also reported a significant further upside from its diverse eastern Mediterranean portfolio including exploration and appraisal opportunities in Israel, Greece and Montenegro.

Mathios Rigas, Chief Executive, Energean Oil & Gas commented:

“There is strong momentum at Energean as we prepare to begin our active Israeli work program to deliver our flagship Israel gas project which will not only deliver significant shareholder value but provide competition and energy security to the Israeli domestic market. Alongside this in Greece we continue to focus on growing our low cost production.

“As such, we are delighted to be the first UK listed international oil and gas operator to list its shares on the Tel Aviv Stock Exchange, fulfilling our commitment that we made to shareholders at the time of our IPO, improving the breadth and depth of the Company shareholder base.

“Israel is a core component of our portfolio and we are on track to start producing gas from the only FPSO in the Eastern Mediterranean in 1Q 2021 providing competition and energy security to the Israeli domestic market, so it is only natural that we expand the accessibility of our company to the Israeli market.”

Mr. Yuval Steinitz, Minister of National Infrastructure, Energy and Water Resources, who attended the opening ceremony, remarked:

“Having Energean in the Israeli Stock Exchange is an important development. It is a positive message to the stock market, but mostly a positive message to the developing energy market of the country, a message that shows that Israel is emerging as a player in the global energy market”.

On track for first gas in 1Q 2021

Energean’s secondary listing precedes an operationally active 2019 as it continues to progress its flagship gas development on track for 1Q 2021 and the wider Israeli portfolio which has 7.5 Tcf* of gross prospective resources across the Karish and Tanin leases and Blocks (12, 21, 22, 23 and 31) that were awarded as part of the recent offshore licencing round.

Energean will kick off its 2019 campaign with the drilling of the high potential Karish North well in March which has the potential to de-risk more than 1.8 Tcf** of resources across Karish North and Karish East and is in line with the company’s strategy to target near field prospects where potential discoveries can be quickly, economically and safely monetised through its offshore FPSO.

Following Karish North, the Stena DrillMAX will drill three development wells into the Karish Main structure. These three wells will be the producers that deliver 4.2 bcma of gas sales into the Israeli domestic market from 1Q 2021.

Energean is building its FPSO with a production and processing capacity of 8 bcma and first steel cut is planned for 26 November 2018. Current gas sales contracts, which account for all of its existing discovered resource, underpin the 4.2 bcma of firm contracts signed to date, leaving 3.8 bcma of spare capacity for the tie-back of additional discoveries.

Future gas sales contracts will target both the growing Israeli domestic market and key export markets in the region, with a view to delivering value to all stakeholders.

Energean has a strong environmental track record and working successfully with local communities, The company has over 37 years’ experience of working safely in environmentally sensitive locations in NE Greece and is focused on transferring this safety and success to all areas where it is present. As the first operator of a FPSO in the eastern Mediterranean, Energean is committed to the safe production of hydrocarbons in Israel as well as being focused on leaving as little environmental footprint as possible.

 

 

Energean bolsters senior management with new Chief Operating Officer

Energean Oil & Gas has appointed Iman Hill, a seasoned petroleum engineer with over 30 years’ global experience in the oil and gas industry, as Chief Operating Officer, effective 1 November, the company has announced in a statement.

Hill is backed by extensive expertise in the technical and commercial aspects of the petroleum business, especially development and production projects.

Prior to joining Energean, Iman was the Technical Director, GM UAE and President Egypt for Dana Gas PJSC, responsible for managing global operations.

Hill began her career with BP in 1984 and worked in a variety of technical positions before becoming a Senior Reservoir Engineer. In 1997 she joined Shell International, where she held positions such as Senior Regional Adviser Africa to the E&P CEO and the Chairman of Shell, E&P Business Interface Manager, Middle East and GM Shell Egypt and Chairwoman of Shell Companies in Egypt. From 2005 to 2011 Iman worked at BG Group in roles such as Senior Vice President for Developments and Operations responsible for maturing developments to sanction, well engineering and operations.

Iman previously held Non-Executive Directorships at Outokumpu and EMGS.

Commenting on the appointment, Mathios Rigas, CEO at Energean Oil & Gas, noted: “Iman is a highly experienced oil and gas professional with a proven track record and we are delighted to welcome her to the team. She brings a wealth of operational and technical expertise and we look forward to working closely with Iman across all of our global operations as we continue to grow production, profitability and deliver shareholder value.”

Energean is a London Premium Listed independent E&P company with 13 licenses across offshore Israel, Greece and the Adriatic. Energean has 349 mmboe of 2P reserves and 48 mmboe of 2C resources across its portfolio. 

In August 2017, the company received Israeli Governmental approval for the FDP for its flagship Karish-Tanin gas development project, where it intends to use an FPSO and produce first gas for the Israeli market in 2021.

In Greece, the company is pursuing an ongoing investment and development program to increase production from its Prinos and Prinos North oil fields and to develop the Epsilon oil field, located in the Gulf of Kavala, Northern Greece.

Energean has five exploration licences offshore Israel, and a 25 year exploitation licence for the Katakolo offshore block in Western Greece and additional exploration potential in its other licences offshore Western Greece, and Montenegro.

 

 

Repsol forced to up budget for Ioannina license seismic survey work

Spanish energy company Repsol, the operator of a 60 percent stake in an onshore block in the Ioannina area, northwestern Greece, farmed out by Energean Oil & Gas, has been forced to revise upwards the project’s budget as a result of increased costs concerning 2D seismic survey work, made more challenging by the region’s landscape features.

Repsol, which has also had to deal with bureaucratic delays, has resumed hydrocarbon exploration work at the Ioannina license following a summer break.

Project costs have risen significantly for Repsol as a result of the company’s need to use specialized equipment, including helicopters, to minimalize the effort’s environmental impact and guarantee the safety of workers. Labor costs have also risen by the need for Repsol to employ more workers. They have ranged between 120 and 200 per day.

Greek energy ministry officials who are well informed on the effort believe further cost increases will be difficult to avoid, given the Ioannina project’s nature. Energean Oil & Gas has retained a 40 percent stake in the venture.

The seismic survey work being conducted in the Ioannina area represents the first such initiative taken in western Greece, onshore, over the past two decades. Lines totaling 400 km and covering seven municipalities are being explored.

 

ELPE Upstream seeking earlier start for Gulf of Patras drilling

ELPE Upstream, a new division established by the ELPE petroleum group, aims to begin drilling at its license in the Gulf of Patras, western Greece, sooner than originally planned, probably in autumn next year, if related licensing procedures and studies are completed ahead of municipal and regional elections next May.

Hydrocarbon exploration and production remains a priority for ELPE despite the petroleum group’s ongoing privatization, a complex and challenging procedure offering a 50.1 percent stake.

The Greek State, selling 20.5 percent of its 35.5 percent stake in ELPE, is expected to maintain a strong presence in ELPE Upstream. Paneuropean, ELPE’s main shareholder owning 45.47 percent, is selling 30.47 percent.

The Gulf of Patras offshore license, covering 1,900 square kilometers, was awarded to ELPE through an open-door tender launched in 2012 and completed in 2014. Potential recoverable hydrocarbon reserves at this license have been estimated at 100,000,000 barrels.

ELPE also has ambitious exploration and production plans for offshore licenses in the Ionian Sea and off Crete.

 

US drillship in Cyprus may reignite Greek-Turkish tension

US energy giant ExxonMobil plans to conduct its first offshore drilling venture at block 12 in Cyprus’s Exclusive Economic Zone (EEZ) within the next few weeks as part of its hydrocarbon exploration effort in the region, sparking fears of renewed Greek-Turkish tension. An ExxonMobil survey vessel is scheduled to arrive at the block on September 28.

Though Greek-Turkish tension has deescalated in recent times, the exploratory work planned by ExxonMobil, as well as France’s Total, in Cypriot waters, could spark new tension between the neighbors, pundits believe.

Regardless of the ongoing developments concerning Turkey’s economic crisis, the upcoming exploration work and possible hydrocarbon production in the Cypriot EEZ could change the Cypriot balance, which has prevented Cyprus from utilizing its natural wealth since the Turkish invasion of the island in 1974. Turkey will most likely be prepared to use force to prevent Cyprus from utilizing this anticipated wealth.

Turkey has already sent a drillship and four support vessels to the Mediterranean to start the country’s first deep-sea drilling operations. There are concerns that tensions in the region could flare up if the Turkish vessel, Porthitis (Fatih), begins drilling off the coast of Cyprus, where Nicosia has already granted exploration licenses to foreign companies.

Turkey says it will prevent Cyprus from searching for gas and oil off its coast if Turkish Cypriots are not included in the process.

Tensions between Greece and Turkey reached breaking point in February after Turkish warships prevented a rig of Italian energy giant ENI from drilling in block 3 of Cyprus’s EEZ.

US officials have asked Ankara to keep away from ten areas and also urged for a Turkish commitment ensuring smooth proceedings in the exploratory work planned within the Cypriot EEZ.

“Naturally, in diplomacy, you name 10 areas so that the other side may back away from some of these,” one pundit told energypress.

Any normalization of Greek-Turkish relations will be temporary and restricted to this week’s repatriation of two Greek soldiers who were released from a Turkish prison following months of captivity, pundits have stressed. The normalization is not a long-term condition, they noted, citing the upcoming hydrocarbon exploration plans in Cyprus’s EEZ.

 

 

 

Repsol, Eni among investors interested in ELPE’s 50.1%

Repsol is seriously considering taking part in an international tender offering 50.1 percent of ELPE (Hellenic Petrolem), announced just days ago, energypress sources have informed.

The Spanish company, already active in Greece’s hydrocarbon exploration and production market, recently formed a partnership with ELPE to submit a joint bid for an offshore block in the Ionian Sea.

Repsol meets all the ELPE tender’s strict criteria – financial, technical and geopolitical – set by TAIPED, the state privatization fund, in association with the sellers, the Greek State and Paneuropean Oil, a member of the Latsis group.

The Spanish firm maintains a strong presence in the refining sector. Its investments in this domain have totalled some 4 billion euros over the past few years. Repsol operates six industrial refineries. In 2016, Repsol’s assets were worth a total of 39.2 billion euros while the enterprise posted a total turnover figure of 36.3 billion euros and an operating profit of over two billion euros.

In the exploration and production field, Repsol has certified deposits of 2.3 billion barrels and is producing 690,000 bpd. Its refining capacity exceeds one mllion bpd.

Another major European petroleum firm, Italy’s Eni, is also believed to be closely monitoring the ELPE tender.

According to the tender’s terms, investors must be able to prove they possess readily available investment amounts worth at least two billion euros.

TAIPED reserves the right to eliminate any interested investor if such a course of action is deemed necessary by the Greek State for protection of national interests, energy securtity and energy supply.

A May 18 deadline has been set for first-round offers. Interested parties have until May 9 to enquire about the international tender’s terms.

 

 

 

EDEY set to deliver opinion on Crete, Ionian hydrocarbon contracts

EDEY, the Greek Hydrocarbon Management Company, plans to forward, to the energy ministry, a study evaluating details of contracts for three hydrocarbon licenses in the Ionian Sea and off Crete between late April to early May, energypress sources have informed.

Early in March, two consortiums submitted bids for three blocks to international tenders. Total-ExxonMobil-ELPE (Hellenic Petroleum) submitted offers for two blocks west and southwest of Crete. Repsol-ELPE made an offer for the Ionian Sea block.

The EDEY study is focused on technical, legal and financial aspects of the contracts prepared. It is a mandatory step before the participants may be declared prefered bidders.

Once the green light is given, the Greek State will be able to commence licensing negotiations with the consortiums. The aim is to finalize procedures within the next few months, which will clear the way for investments and exploration work.

Both the Greek government and local hydrocarbon sector are placing great emphasis on this specific effort as the interest expressed by ExonMobil, Total and Repsol has raised hopes of potential hydrocarbon discoveries.

ELPE sale deal struck, state boosts its hydrocarbon interests

The Greek State, represented by the government, and Paneuropean Oil, a member of the Latsis corporate group, co-shareholders of ELPE (Hellenic Petroleum), have reached a deal to sell at least 50.1 percent of ELPE through an international tender, ELPE has announced in a statement.

The Greek State currently holds a 35.5 percent stake of ELPE and Paneuropean Oil controls a 45.47 percent stake.

TAIPED, the state privatization fund controlling the Greek State’s 35.5 percent share, will offer a stake of at least 20 percent, while Paneuropean Oil will provide the other 30.1 percent, as an absolute minimum, the ELPE statement noted, adding that a Memorandum of Understanding (MoU) has been signed.

The agreement’s text details the future management roles of the two shareholders at ELPE, veto rights, the dividend policy, disinvestments and strategy.

However, ELPE’s hydrocarbon exploration and exploitation interests appear to have been handled separately, giving the Greek State a reinforced role regarding its rights in this division, seen as one of national security, as it has to do with control of hydrocarbon deposits and geopolitical issues.

The Greek State’s stronghold of ELPE’s hydrocarbon interests, including increased future revenues from this domain, will be factored in by prospective buyers and, quite obviously, promises to lower the eventual sale price.

Sources noted that the international tender could be announced this month as a swift follow-up to the agreement between the Greek State and Paneuropean Oil.

ELPE’s share price stood at 7.8 euros at the close of yesterday’s session, giving the firm an equity-based value of 2.38 billion euros. This means that a 50 percent share of ELPE would be worth 1.19 billion euros, based on the current share price. This figure, however, is not a true reflection of ELPE’s value as the sale will also include the enterprise’s management rights, which will provide a premium.

Turnout for Crete, Ionian Sea blocks lower than expected

The turnout by petroleum firms for an international tender offering hydrocarbon exploration and exploitation rights to three offshore blocks off Crete and in the Ionian Sea was lower than had been anticipated by Greek authorities. The deadline for offers expired Monday.

Without a doubt, the stature of participating consortiums – Total, Exxon and Mobil, Hellenic Petroleum (ELPE) as well as Repsol-ELPE – which submitted respective offers for the Crete and Ionian Sea blocks, cannot be disputed, but the early interest expressed by other players expressed was not followed through.

The reduced competition is expected to subdue the price level of offers made. Had more than one consortium submitted offers for each of the blocks on offer, higher bids, as well as revenues for the Greek State, would have been generated.

Total, Exxon Mobil and ELPE submitted bids for the two Cretan blocks, west and southwest of the island, while ELPE – Repsol delivered a bid for the one Ionian Sea block offered.

The early interest of Total, Exxon Mobil and ELPE in the Cretan offshore area prompted EDEY, the Greek Hydrocarbon Management Company, to stage the tender for the Crete blocks.

Energean Oil & Gas, whose preliminary interest in the Ionian Sea prompted the Ionian block tender, did not turn up. Sources attributed this absence to two factors – the petroleum firm’s focus on Israel, where it has assumed development of the Karish and Tanin fields, as well as a 500 million-dollar equity raising endeavor, through a premium listing on the London Stock Exchange’s Main Market, to support its Karish and Tanin projects.

Other noteable absentees included Italy’s Eni, Israel’s Delek, as well as US firm Noble. The geological risk of the areas offered – especially the Cretan blocks, categorized as unexplored deep-sea frontier areas – was cited as a factor. So, too, was the relatively low price of oil (63 dollars per barrel), which cannot justify the required investment costs. The lack of any major deposit discovery in Greece, such as the Aphrodite hydrocarbon field in Cyprus and the Zohr field in Egypt, has also been cited as a contributing factor behind the subdued turnout.

The problems encountered by Eni in the Cypriot EEZ as a result of the interruption of a drilling attempt by Turkish naval forces at a license held by the Italian firm, is believed to have kept it away from the tender offering Cretan and Ionian Sea blocks.

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

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.”

 

Total officials infuriated by Block 2 ratification delay

Strong complaints expressed in person last September by a Total official to Greek Prime Minister Alexis Tsipras about bureaucratic delays holding back the French petroleum firm’s investment plans in Greece have not yet led to a comprehensive response from the government.

A month after the official’s protest, a consortium comprised of Total, Edison and ELPE (Hellenic Petroleum) ended up signing an exploration and exploitation agreement for Block 2 in the Ionian Sea, but, four months on, this deal has yet to be ratified in Greek parliament, an act needed to make the contract official.

Officials at Total are believed to be infuriated by this four-month delay, energypress sources informed.

Speaking a week ago at a conference in Patras, western Greece, on the subject of regional development, energy minister Giorgos Stathakis placed emphasis on the government’s determination to develop the country’s hydrocarbon sector. He noted that licence agreements for fields in northwest Peloponese and Etoloakarnania would be ratified within days but made no reference to Block 2, a field measuring 2,422.1 square kilometers. This has further troubled Total officials.

Last spring, Total had reportedly come close to abandoning its investment plans in Greece as a result of the delays, which are not only affecting the French firm.

ELPE and Energean had submitted respective bids for the aforementioned northwest Peloponese and Etoloakarnania in February, 2015. These offers were accepted in 2016 and contracts were signed last May. However, neither licence has yet to be ratified in parliament.

Extended period of higher oil prices would benefit local aspirations

It remains to be seen if the currently improved market conditions for the global petroleum industry, prompted by higher oil prices, will last long enough to benefit Greece’s hydrocarbon aspirations.

Greece is looking to push ahead with hydrocarbon exploration and exploitation agreements for fields southwest of Crete as well as in the Ionian Sea.

Earlier this week, British Petroleum announced that the increase in oil prices, combined with lower production costs, helped the petroleum giant increase its profit by 2.8 billion dollars in 2017, following a one-billion dollar drop in 2016. BP’s improved performace in 2017 represents the firm’s best performance, in the hydrocarbon exploration sector, since 2004.

Also highlighting the petroleum industry’s upbeat prospects, ExxonMobil recently announced that it expects a fivefold hydrocarbon production increase by 2025.

 

Greece, Albania reach EEZ deal promising Block 1, 2 progress

The governments of Greece and Albania appear to have reached an Exclusive Economic Zone (EEZ) agreement whose implementation would clearly define offshore regional borders and enable hydrocarbon exploration progress in the Ionian Sea’s Blocks 1 and 2. An official announcement by both sides is expected soon, energypress has been informed.

In the past, Albania has strongly reacted against the prospect of any exploration at these blocks, which the neighboring country has regarded as disputed offshore territory.

The Greek government’s agreement with Tirana comes as acknowledgment of partial faults that have existed until now in the mapping out of the EEZ, reliable sources noted.

In exchange, Albanian officials will not be able to raise hydrocarbon-related objections with regards to the continental shelf close to Greece’s Othoni and Erikousa islets, located in the Ionian Sea’s north.

Leading Greek government officials have expressed confidence that problems encountered in the past, from Albanian opposition against Greek hydrocarbon activity in the region to attempts by the neighboring country to explore areas within Greece’s EEZ, will not be repeated following this latest agreement.

Blocks 1 and 2 were included in a Greek package of 20 offshore blocks included in a tender that ended in July, 2015.

A consortium comprised of Total, ELPE (Hellenic Petroleum) and Edison signed an agreement for Block 2, in the Ionian Sea’s north, last year.

The situation concerning Block 1, in the Ionian Sea’s northwest, remains unclear. ELPE had submitted an offer but local authorities have kept putting off its appraisal.

Less than a decade ago, Turkey had intervened following a previous EEZ agreement reached between Greece and Albania, demanding Tirana to retract the arrangement as it offered Greece full islands rights, which carried negative implications concerning Ankara’s hydrocarbon interests in the Aegean Sea.

 

 

 

 

 

Katakolo 10m barrel estimate a major bonus for Energean

An Energean Oil & Gas hydrocarbon block in Katakolo, off western Peloponnese, has been certified to measure 10.7 million barrels by an independent agency, representing triple the amount of an initial estimate of 3 million barrels made by Greek authorities when staging an international tender for the block.

The development comes as a major bonus on the domestic front for Energean Oil & Gas, whose CEO Mathios Rigas has essentially based himself in London to organize financial matters concerning a 1.5 billion-euro investment by the company in Israel. As a result, Dimitris Gontikas, managing director of Energean Oil & Gas subsidiary Kavala Oil, is now managing Energean’s domestic matters.

Besides the Katakolo bonus, Energean’s domestic prospects include the Prinos block in south Kavala, certified by an independent agency to possess 40 million barrels, and, possibly, a further 20 billion barrels.

As for Energean’s interests in Israel, the company’s certified deposits amount to 2.4 trillion cubic feet of natural gas, the equivalent of 446 million barrels of crude. Energean holds a 50 percent stake in Energean Israel, which fully owns the Karish and Tanin fields.

Ionian Sea Block 2 seismic survey no sooner than next November

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.

HAEE London event examines southeast Europe energy developments

Responding to requests from abroad to address the serious gap in the comprehensive briefing of the British and global energy community on the Greek-Cypriot dip type and their combinatorial capabilities, ΗΑΕΕ, the Greek Think Tank for Energy Economics, as the Greek affiliate of the international think tank based in the US, ΙΑΕΕ, has used well-known representatives of the market, state, political and academic life, and presented, in London, Greek and Cypriot activities covering the full spectrum of the energy sector.

In this integrated approach to the energy developments in Greece and Cyprus, an event entitled “Energy Developments in S.E Europe: Riding the Global Trends”, was staged in London this week, on November 28.

The event was organized in collaboration with the postgraduate studies department at the London Research Center for Energy Management, headed by the President of HAEE, Dr. Kostas Andriosopoulos, who also coordinates the energy teaching of the other departments of the complex. The international network of energy agents in the eastern Mediterranean region is informed about developments in the ESCP network, which, apart from academic completeness, also has the advantage of being directly connected to the energy market.

Cyprus was represented by the candidate for the presidency in the forthcoming elections, Nikolas Papadopoulos, who has experienced the whole energy course of the island. The particular value of his contribution at the London conference lies in the fact that, as a candidate for President of Cyprus with a great chance of electoral success, he presented with realism what can and should be done on the island, with the possibilities and conditions prevailing today.

The energy future of Greece was presented by HHRM president Giannis Basias, who analyzed the data on the existence of hydrocarbons in the Greek offshore and land environment and underlined the positive prospects for their exact localization and exploitation, both for Greece and the foreign companies considering investments in the region.

The spectrum of investment, scientific, technical, bureaucratic and political factors concerning foreign energy investments in Greece was presented by TAP director Richard Skoufias.

The experienced manager of the complicated and demanding project concerning the construction of the Greek section of the Southern Corridor for the transportation of natural gas from the Caspian Sea and other sources to Europe underlined the fact that TAP has been accepted in practice by the Greek society and leaders at regional and central level, resulting in its smooth implementation.

TAP, Skoufias stressed, is a model of successful foreign investment in Greece as it has been a concern to cover the specificities of local communities.

The interest of foreign companies to invest in Greek energy was expressed by Melina Yosserand, spokesperson for the American shale gas exporting company Tellurian Inc., seeking participation in the development of the prospective LNG floating station in Alexandroupoli, northeastern Greece. This project promises to promote US gas up to Bulgaria and further north. The energy project in Alexandroupoli, which also involves DEPA, Greece’s public gas corporation, is an immediate goal for the US.

The plans of the international energy community for hydrocarbons in Greece and Cyprus were presented by the President of the International Gas Union Mel Ydreos. He underlined that the eastern Mediterranean region is mature for direct investment in research and exploitation of natural gas, while also noting that theoretical obstacles and objections experienced from time to time can be attributed to political considerations which should not interfere with the smooth functioning of the free market.

The Head of Energy Strategy and Planning, energy consultant Tasos Garis recapitulated the conclusions of the conference and added the important factor of electricity and alternative forms of energy, a prerequisite and need not only for the protection of the environment, but also rationalization in many aspects, including economic and energy support to the modern society.

 

 

EDEY head sees hydrocarbon results within 3 years

The country’s hydrocarbon exploration endeavors will produce surprise results within the next three years, Yiannis Basias, the recently appointed chairman of EDEY, the Greek Hydrocarbon Management Company, has forecast in an interview for local business news channel SBC’s Energy Week show.

The EDEY chief, who reminded that Prinos in northern Greece is the only hydrocarbon source producing at present, noted that exploration work covering a large part of western Greece may have commenced by the end of the year as nine licenses have either already been approved or are about to be approved.

“We could have some good results in the next three years,” Basias remarked, adding that the outcome of drilling ventures will determine whether foreign and Greek firms will decide to further pursue their efforts.

The EDEY chief put the probability of success at between 20 and 25 percent. “Therefore, we need to conduct five drilling operations, which is why the endeavor carries financial risk, as each drilling effort could cost between 50 and 150 million euros,” Basias said.

He pointed out that the offshore areas being eyed are challenging deep-water blocks. “This means that major deposits will need to be discovered to make the effort feasible for oil companies,” the EDEY boss explained.

Major oil companies currently appear interested and prepared to take risks, Basias told, adding that the results of recent private meetings with investors in London were encouraging.

Commenting on a delayed international tender concerning blocks in the Ionian Sea and off Crete, Basias explained that all related requirements were delievered by EDEY last summer and publication is now being awaited in the EU’s official journal, the OJ.

A seven-year period would be needed for production to begin if hydrocarbon deposits are discovered, according to Basias.

Energean Oil & Gas announces first CPR results for Montenegro blocks

Energean Oil & Gas has announced the first Competent Persons Report (CPR) for its assets offshore Montenegro, compiled by Netherland Sewell & Associates (NSAI), detailing the recoverable gas and liquids resource estimates in respect to Energean’s 100% interest in blocks 4218-30 and 4219-26.

The CPR shows the combined net unrisked prospective recoverable resources (P50) for the two blocks, awarded to the company earlier this year, as 1.8 TCF natural gas and 144 mmbbls liquids (438 mmboe in total).

Energean is currently the sole operator, with 100% working interest, of offshore blocks 4218-30 and 4219-26. The blocks were officially awarded in March 2017, following the signing of a concession agreement between the company and the State of Montenegro. The two blocks cover a surface area of 338 km2 in shallow waters.

The CPR is part of the first three-year exploration phase, which entails a mandatory work programme including a 3D seismic survey covering the two blocks that is planned to be acquired in 2018, and geological and geophysical (G&G) studies. The total cost of this initial exploration phase is estimated at US$5m.

The CPR is an important step in scoping the potential of the offshore Montenegro area, which is currently underexplored, despite the fact that oil and gas discoveries were made during drilling by previous Operators in late 20th century, but not commercialised.

Commenting on the CPR findings, Energean CEO, Mr. Mathios Rigas, stated:

“The CPR further suggests that Montenegro sits in the ‘sweet spot’ of untapped potential in the eastern Adriatic. The area remains substantially underexplored, despite having what appears to be a working petroleum system with extensive sandstone and carbonate reservoir development. The western offshore Adriatic has been a prolific hydrocarbon-producing province for over 50 years for both oil and biogenic gas and we believe that the same hydrocarbon plays extend into offshore Montenegro.

“With exploration experience in western Greece, Energean has developed a detailed understanding of the area’s geology and is committed and uniquely positioned to maximise development possibilities and unlock the region’s hydrocarbon potential.”

Energean is a leading independent E&P company focused on the eastern Mediterranean region, where it holds nine E&P licenses, encompassing offshore Israel, Greece, the Adriatic and onshore north Africa.

It is the only oil and gas producer in Greece with a 35-year track record of operating offshore and onshore assets in environmentally sensitive areas and employs 480 oil and gas professionals.

The group has 37 million barrels (2P) in the Prinos License, offshore northeastern Greece and through its subsidiary Energean Israel, a company in which Energean and Kerogen Capital hold 50% each, resources of approximately 450 million barrels of oil equivalent (2C) in the Karish and Tanin Fields.

Energean Oil & Gas has recently received approval from the Israeli Government of the FDP for the Karish and Tanin fields, aiming to use an FPSO and produce first gas in 2020.

Energean Oil & Gas is also pursuing an ongoing investment and development programme to increase production from the Prinos and North Prinos Oil Fields and develop the Epsilon Oil Field, located in the Gulf of Kavala, northern Greece.

The company has secured a 25-year exploitation license for the Katakolo offshore block in western Greece with first oil expected in 2019/20, representing the first production of oil or gas in the west of the country.

Energean Oil & Gas also has significant exploration potential in the licenses held in western Greece, Montenegro and Egypt, which provide the basis for future organic growth.

Crete offshore blocks tender set for EU gazette publication

An international tender offering exploration and exploitation rights to offshore blocks southwest and west of Crete, as well as the Ionian, is expected to be published in the Official Journal of the European Union (OJ) within the next ten days, sources have informed.

The tender, announced on August 17, also needs to be published in the OJ, the EU’s official gazette of record, before the countdown for binding offers begins. Once published, interested parties will have 90 days to submit their offers to EDEY, the Greek Hydrocarbon Management Company.

Certain pundits have linked the anticipated speed-up of the tender’s publication to ExxonMobil’s Cretan interest and Greek Prime Minister Alexis Tsipras’s current official visit to the US for a meeting with President Donald Trump.

The interest expressed by ExxonMobil, joined by France’s Total and ELPE (Hellenic Petroleum) as consortium partners, prompted Greece’s energy ministry to proceed with the tender.

If no other investors emerge with offers, then the Greek State will move ahead and begin negotiations with this three-member consortium.

Italy’s ENI, which discovered Zor, the gigantic Egyptian gas field, is rumored to be interested in two Crete offshore blocks, one southwest, the other west of the island. The Italian firm has already established operations in Cyprus and is eyeing the wider southeast Mediterranean region.

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

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.

Balkan hydrocarbon collaboration discussed at Athens conference

The prospect of collaboration between state hydrocarbon companies was raised by Yiannis Bassias, chief executive of EDEY, the Greek Hydrocarbon Management Company, at the Balkans Petroleum Summit, held in Athens October 3-4 by global event organizer IN-VR Oil & Gas.

The summit brought together state hydrocarbon authorities, regulators and international oil company officials for a discussion on exploration and production projects, as well as an exchange of ideas on future hydrocarbon projects in the Balkans.

Bassias, as part of his contribution to the event, also underlined the similarities and differences between methods favored by Balkans countries in dealing with the resurgence of Balkan region interest by the international industry over the past seven years.

The importance of midstream projects and new infrastructure, need for reprocessing exisiting data and coordination for common regional petroleum targets, achievable only through information exchange by Balkans states, were among the topics addressed at the event.

Participants unanimously agreed that the EU hydrocarbon directive should be used as a guiding mechanism for a framework of common business practices.

The panel agreed to stage a follow-up meeting in the near future and meet annually.

Other participants included: Vladan Dubljevic, Executive Director of the Montenegrin Hydrocarbon; Milica Zorić, Head of Geology and Mining Division of the Ministry of Mining and Energy of Serbia; Florina Sora, Senior Advisor of the National Agency of Mineral Resources of Romania; Ilia Gjermani, Director of Petroleum Department of the Ministry of Infrastructure and Energy of Albania; and Hazim Hrvatovic, Director of the Institute of Geology of the Federal Ministry of Energy of Bosnia and Herzegovina

 

 

 

‘ExxonMobil plans to invest €5bn for Crete exploration’

Global oil industry giant ExxonMobil has committed itself to investing 5 billion euros for hydrocarbon exploration and exploitation in the Greek market, Economy and Development Minister Dimitris Papadimitriou told investors at the 12th annual London roadshow of Athens-listed firms, as part of the government’s wider effort to present Greece as a market now beginning to attact major investments.

The minister made reference to a series of foreign investment plans for the Greek market, including that of ExxonMobil.

Sources have confirmed the ExxonMobil intention to set aside 5 billion euros for investments in the Greek market, developments permitting.

An international tender offering exploration and exploitation licenses for offshore blocks west and southwest of Crete is still in progress, meaning that the minister’s reference to ExxonMobil does not represent a finalized investment plan. Rivals, such as Chevron, for example, could suddenly emerge with a better offer, or the tender could sink.

ExxonMobil has joined forces with France’s Total and Greece’s Hellenic Petroleum (ELPE) for the Crete tender.

It should also be reminded that, besides Prinos, in the country’s north, no other location in Greece has yet to produce confirmed hydrocarbon deposits. All is still at a speculative stage.

By comparison to Papadimitriou’s hasty remarks concerning ExxonMobil’s investment plan for Greece, energy minister Giorgos Stathakis has remained far more reserved.

Bidders for the Crete hydrocarbon international tender, offering two offshore blocks, one south of the island, the other southwest, measuring nearly 40,000 square kilometers in total, face a December deadline.

Offers will need to be submitted to EDEY, the Greek Hydrocarbon Management Company. According to the tender’s terms, bids will be appraised within 60 days of the deadline and contracts signed within 60 days of the appraisal’s completion.

 

More Cypriot gas discoveries needed for sustainability, expert explains

Hydrocarbon deposits discovered through a drilling initiave conducted by Total at Cyprus’s Block 11, an offshore plot southwest of the island, cannot yet be utilized, but the drill has provided many significant and positive findings that promise to support prospective efforts, Dr. Konstantinos Nicolaou, a petroleum geologist and board member of the Cyprus Hydrocarbons Company (CHC), as well as a technical consultant for Energean Oil & Gas in Greece, has told energypress in an interview.

The official denounced various media reports purporting to various additional hydrocarbon discoveries in Cyprus’s exclusive economic zone (EEZ).

Nicolaou also noted that work concerning Cyprus’s “Aphrodite” gas field is not being delayed. Instead, the scientist pointed out that additional deposits possessing satisfactory hydrocarbon amounts still need to be discovered to make the development of an LNG terminal sustainable and prompt investments.

 

 

 

Tenders stir up interest amid survey purchase complaints

Licences to be offered by the Greek State for exploration and exploitation of offshore blocks in the Ionian Sea and off Crete now appear to be drawing wider attention following an initial interest displayed by investors that prompted authorities to organize three tenders.

However, prospective investors are believed to be discontent with a term requiring them to purchase existing seismic surveys. The terms of the upcoming tenders were recently published in the local gazette.

Initial interest expressed by a consortium comprised of ExxonMobil, Total and ELPE (Hellenic Petroleum) for two blocks off Crete, one southwest, the other west, led authorities to announce a tender, while Energean Oil & Gas got the ball rolling for a third tender offering an Ionian Sea block.

Though new firms now entering the picture have yet to be named, authorities have noted that these are mid-scale and large-scale enterprises which have eyed the Greek market in the past.

Shell, Japex, Dana Petroleum, INA and Hunt are believed to be among the oil companies maneuvering ahead of the tenders.

The sale procedures are expected to be launched towards the end of September, when published in the Official Journal of the European Union. Investors will then have 90 days to submit their offers. Greek authorities will push for the appraisal procedure of offers to have been completed by early 2018.

Prospective investors have expressed objections against a term requiring all participants to purchase existing seismic surveys concerning their respective areas of interest. PGS has conducted surveys covering 12,347 square kilometers of offshore Greek territory.

A number of sources told energypress that investors should have the right to conduct their own seismic surveys and then purchase the PGS data as additional information only if needed.

It is estimated that the cost of purchasing seismic surveys concerning the Ionian Sea block is roughly two million euros, while the price tag for the seismic surveys linked to the two blocks off Crete is estimated at five million euros.