Total

PM to attend Cretan block signing ceremony, reshuffling in west

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A signing ceremony scheduled to take place tomorrow for hydrocarbon exploration and production rights concerning at least one of two offshore Cretan blocks will be attended by Prime Minister Alexis Tsipras, whose speech is expected to emphasize Greece’s effort to utilize the country’s mineral wealth and also project a message opposing Turkey’s provocative behavior in the southeast Mediterranean.

The energy ministry will sign an agreement tomorrow with a three-member consortium comprised of ExxonMobil, Total and Hellenic Petroleum (ELPE) for an offshore license west of Crete.

A second block, situated adjacently southwest of Crete, could also be signed by the two sides tomorrow. But it still needs to be endorsed by a local authority, making the prospect highly unlikely.

Both agreements will first need to be approved by Greek Parliament before exploration work commences. A first phase of exploratory survey work is planned to last three years. If the feedback is favorable, drilling activities will follow after 2022, according to current plans.

Meanwhile, consortiums that have secured licenses for blocks in western Greece are moving to reshuffle their line-ups, energypress sources have reported.

This activity, a common occurrence in the global oil industry, has been attributed to maneuvering by multinationals for moves to blocks seen offering better prospects as well as efforts to seek additional partners for investment cost sharing.

Greece’s geopolitical role and blocks are gaining stature on the international map amid all this activity.

EDEY aims to offer complete Crete portfolio with new areas to next gov’t

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EDEY, the Greek Hydrocarbon Management Company, is striving to have completed all preliminary work for new licenses off Crete so that Greece’s next government can be handed a complete portfolio ready for licensing procedures when it begins its tenure following the snap elections on July 7.

The country’s next administration will need to push ahead with new hydrocarbon projects.

EDEY is currently working on environmental studies concerning new areas south of Crete, which the company intends to offer to investors for exploration and production.

Their features differ to those of two offshore licenses already secured by a three-member consortium comprised of ExxonMobil, Total and Hellenic Petroleum (ELPE), west and southwest of Crete.

The new areas south of Crete had been swept aside in previous procedures but new scientific data has revitalized the interest of investors.

A signing ceremony for one of the two Cretan hydrocarbon exploration and production licenses, west of Crete, will be staged this Thursday, the ExxonMobil- Total-ELPE consortium has been informed.

The second license, southwest of Crete, may also be added to Thursday’s signing ceremony. However, its finalized version still needs to be formally presented, meaning investors will most probably need to wait until after Greece’s snap elections for this license to be signed.

Crete offshore licenses a step away from finalization

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A decision by the Court of Audit, one of Greece’s highest ranking courts, approving two hydrocarbon exploration and production licenses for offshore blocks south and west of Crete to a consortium comprised of Total, ExxonMobil and Hellenic Petroleum (ELPE) paves the way for the signing of finalized agreements.

This could take place at a signing ceremony on Crete prior to the July 7 snap elections with the participation of energy minister Giorgos Stathakis.

The three companies, keen to begin exploration activities before the end of the year, have urged the government for a swift completion of procedures.

The two agreements will still need to be ratified in Parliament following next month’s general elections before the three-member consortium can commence work.

The Court of Audit’s favorable decision represents one of the final steps in a procedure started in 2017, when Total and ExxonMobil had expressed interest.

 

Heightened activity, consortium reshuffling as drilling nears

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Following a wider trend observed in the southeast Mediterranean, consortiums holding hydrocarbon exploration and production licenses in Greek territory are moving to reshuffle their line-ups, especially for blocks in the Ionian Sea, as the first local drilling operations in decades draw nearer, energypress sources have informed.

The reshuffling activity, which has not involved blocks off Crete, has been attributed to a search by multinationals for additional partners in consortiums established with Hellenic Petroleum (ELPE) as a means of reducing high costs demanded by deep-water exploration in the Ionian Sea.

ELPE holds exploration and production rights for various blocks in the Ionian Sea through consortiums established with Total, Edison and Repsol.

Video Data Rooms have been set up to enable prospective participants to view seismic survey data for Ionian Sea blocks, as well as technical and financial information.

The current reshuffling activity could produce new consortium line-ups by the end of the year, sources have informed.

Greece’s first drilling operation in several decades, at the Gulf of Patras, is expected to commence early next year. Positive results promise to provide further impetus for more drilling in Greek territory.

 

East Med pipeline prospects bolstered by Egyptian support

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Egypt’s constructive participation in talks for the development of the East Med natural gas pipeline, planned to carry Cypriot, Israeli and, possibly, Egyptian natural gas to the EU via Greece and Italy, has created favorable prospects for the realization of a project promising to play a pivotal role on the southeast Mediterranean energy map.

US support for the project and an effort by participating countries to ensure ExxonMobil’s involvement are also bolstering the East Med’s development prospects.

Last month, Egypt’s petroleum minister Tarek El-Molla had told Cyprus News Agency his country is not interested in participating in the East Med project with its Zohr natural gas deposit.

However, the Egyptian minister changed his tune yesterday at Ceraweek 2019, an international energy in Houston, Texas, noting Egypt will support the East Med project.

Quite clearly, Egypt is looking to establish yet another alternative supply route for its Zohr field, an enormous natural gas discovery, to major consumer markets of the west.

Prior to expressing support for East Med, El-Molla took part in a meeting with his Greek, Israeli and Cypriot counterparts – Giorgos Stathakis, Yuval Steinitz and Giorgos Lakkotrypis, respectively – and US energy under secretary Mark Menezes, at the Houston event.

All four officials confirmed their support for the East Med gas pipeline, according to a statement released by Greece’s energy ministry.

Stathakis, Greece’s energy minister, also held a separate meeting yesterday with ExxonMobil officials for talks on developments concerning the oil major’s hydrocarbon exploration interests at offshore blocks west and southwest of Crete – through a consortium established with Total and ELPE (Hellenic Petroleum) – and the East Med project, energypress sources informed.

 

Crete exploration license by May, minister assures ExxonMobil deputy

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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.

Investors frustrated by license delays for Crete exploration

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Contrary to Cyprus, providing oil majors investor-friendly conditions for their hydrocarbon exploration activities, ExxonMobil’s recent Glaucus-1 gas discovery emerging as a shining example, conditions in Greece are undermining the efforts of investors.

A consortium comprising Total, Exxon Mobil and ELPE (Hellenic Petroleum), established for hydrocarbon exploration work off Crete, has been held back by Greek government delays over the past few months.

Though most of the preliminary work has been completed, the trio of investors is still waiting for the Greek government to issue an exploration license, which would enable it to commence work at blocks off Crete.

An environmental impact study provided by the consortium for blocks west and southwest of Crete is said to have inexplicably fallen into stagnancy at one of the offices of the energy ministry’s environmental division over the past couple of months. It needs to be approved as part of the license issuing procedure.

Not surprisingly, investors are apparently making comparisons between sector operating conditions in Greece and Cyprus.

Exxon Mobil, Total and ELPE officials have all forwarded questions to energy minister Giorgos Stathakis’ office over the delay and been told not to worry.

“We’re excited but still waiting for the Greek government’s final approvals,” Tristan Aspray, Vice President of Exploration for Europe, Russia, and the Caspian, somewhat frustrated, recently remarked.

 

New wind turbine connections to grid rise by 7.2% in 2018

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A total of 103 new wind turbine facilities with a combined capacity of 191.6 MW were connected to the country’s grid in 2018, a 7.2 percent year-on-year increase, the ELETAEN figures showed, according to latest data released by ELETAEN, the Greek Wind Energy Association.

EREN, the renewable energy group founded and headed by Greek-French entrepreneur Paris Mouratoglou, has emerged as a new entry in Greece’s top-five list of RES investors with investments offering a total capacity of 210.9 MW, a 7.5 percent market share.

EREN, which recently established a strategic agreement with Total, is now ranked fifth, replacing Enel Green Power, which has dropped to sixth place.

The top-five list’s four other enterprises held their places. Terna Energy leads with 536.1 MW, a 19 percent share; El. Tech Anemos is ranked second with 285.6 MW (10.1%), Iberdrola Rokas is third with 250.7 MW (8.9%); and EDF EN Hellas is placed fourth with 238.2 MW (8.4%)., according to the ELETAEN data.

CF Ventus, a venture of the Fortress Fund, has emerged as Greece’s new RES market arrival following its acquisition of wind energy parks from the Libra group. CF Ventus is continuing to invest in the sector.

Facilities at old wind energy parks with a total capacity of 15.43 MW operated by PPC Renewables, primarily in Crete and the North Aegean, were uninstalled in 2018.  Work on their replacements has already begun.

Vestas continued to dominate Greece’s wind turbine supply market, providing an impressive 78.2 percent of all turbines installed in 2018.

As for the spatial distribution of wind capacity in Greece, the central mainland continues to be ranked first with 907 MW (32%) and is followed by the Peloponnese with 550 MW (19%) and eastern Macedonia-Thrace with 375 MW (13%).

 

Ministry committee receives Crete hydrocarbons impact study

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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.

EDEY presenting five new fields in search for more investors

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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.

Major traders, Socar tipped to submit first-round ELPE bids

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Two of the world’s biggest commodity traders, Dutch firm Vitol and Switzerland’s Glencore, will probably feature among the participants to officially express interest in ELPE’s (Hellenic Petroleum) international tender offering a 50.1 percent stake of the enterprise, according to latest information provided by sources.

The deadline for non-binding offers expires today following an extension of a previous May 18 deadline.

Besides the aforementioned commodity traders, Azerbaijan’s state-run energy firm Socar, joined by a European firm, possibly Spanish, is also tipped to declare non-binding interest in the bailout-required ELPE sale, sources have informed. This would represent a surprise development.

Socar had taken part in a previous DESFA (natural gas grid operator) sale and was declared the winning bidder before its long-running acquisition attempt was blocked by European Commission competition concerns.

News on the possible participation of major European energy players is not good. European petroleum groups such as Italy’s Eni, Hungary’s MOL, France’s Total, and, possibly, Spain’s Repsol, have reached decisions to not submit initial expressions of interest for the ELPE sale, according to energy market pundits.

A clearer picture on the sale’s preliminary turnout is expected later in the day when TAIPED, the state privatization fund, is expected to announce the list of first-round bidders.

 

 

EDEY set to deliver opinion on Crete, Ionian hydrocarbon contracts

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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.

Greek State, Latsis group touching up ELPE deal with hydrocarbon issues

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Hydrocarbon exploration and exploitation rights either already acquired by ELPE (Hellenic Petroleum) or being sought, for blocks off Crete and in the Ionian Sea, are the focus of final-stage negotiations between the Greek State, represented by the government, and the Latsis corporate group aiming for a deal that will enable the sale, by the privatization fund, of a 51 percent stake and management rights of the petroleum firm to prospective buyers through an international tender.

The Greek State currently holds a 35.5 percent stake of ELPE and Paneuropean Oil, a member of the Latsis corporate group, controls a 45.47 percent stake.

Once the two sides reach a deal, seen happening any day now, according to pundits, then a 51 percent stake of ELPE will be offered to a strategic investor.

The two sides are believed to focusing on matters concerning how they will share future profits for hydrocarbon exploration and exploitation agreements already signed by ELPE as well as blocks being targeted.

The issue is rather complicated as ELPE holds exclusive rights for certain blocks (Arta-Preveza, northwest Peloponnese) but is a member of various consortiums for all its other hydrocarbon interests.

ELPE and Italy’s Edison have established a 50-50 partnership for a Gulf of Patras block. It holds a 25 percent stake in Block 2 off Corfu. France’s Total holds a 50 percent stake in this venture and Edison controls the other 25 percent. ELPE also holds a 20 percent stake in a consortium that has submitted the only offers for two offshore blocks south and southwest of Crete. Total and Exxon Mobil each hold 40 percent stakes in these initiatives. Also, ELPE and Spain’s Repsol hold 50 percent stakes in an offer submitted for another Ionian Sea block.

Once the government and Latsis group have signed an agreement, TAIPED, the state privatization fund is expected to swiftly announce an international tender. Its terms are expected to shape the turnout of interested investors.

According to the revised bailout, the tender was supposed to have been announced by the end of March. It could be launched this month, barring unexpected developments.

ELPE’s share price has remained relatively steady at levels of between 7.8 and 8 euros over the past month or so despite its privatization prospects. Based on the share’s closing price yesterday, ELPE’s equity-based value is 2.39 billion euros, meaning a 51 percent stake may be estimated at 1.19 billion euros.

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

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

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

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

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

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

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

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

 

Oil majors set for Crete block offers, milder Ionian interest

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With just days remaining before deadlines for tenders offering exploration and exploitation rights at a total of three offshore blocks off Crete and in the Ionian Sea, five petroleum firms, including three international oil majors, took part in an exploration security-related meeting held by EDEY (Greek Hydrocarbon Management Company) yesterday, which suggests they will be submitting offers.

Exxon Mobil, Total and ELPE (Hellenic Petroleum), whose interest in the Greek market prompted EDEY to offer two offshore blocks off Crete, Repsol, following developments for Ionian Sea investments, and Energean Oil & Gas, whose interest in the Ionian Sea area led to the other EDEY tender, all participated in the hydrocarbon company’s meeting, ahead of the deadines for the three tenders, expiring this coming Monday.

The interest expressed by investors for the two Cretan offshore blocks appears to be greater.

Noble Energy and Israel’s Delek, which have visited a related virtual room set up for the tenders by EDEY for information, were not represented by any officials at yesterday’s meeting. It remains to be seen whether these absences mean that the two firms will not submit offers on Monday.

At this stage it appears that a three-member consortium made up of Exxon Mobil, Total and ELPE, as well as Italy’s Eni, already active in Cyrpus, will submit offers for the Cretan blocks. A third offer from Noble and Delek would come as a surprise.

Eni recently had to deal with Turkish intervention in Cypriot waters, which has delayed the firm’s drilling plans for that area.

As for the one Ionian Sea block being offered, Spain’s Repsol has displayed a consistent interest, despite negative reactions by local authorities and citizens against nearby exploration work, with Energean, in the Ioannina area, northwestern Greece.

In an Oil & Gas Journal article published last month, two EDEY officials informed that areas west and southwest of Crete have shown serious signs of deposits.

The northwest part of the Ionian Sea, the location of the third block being offered, has also shown hydrocarbon potential as it shares similar geological characteristics with the southeast Adriatic Sea, already producing.

 

 

 

 

Total officials infuriated by Block 2 ratification delay

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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.

Ionian Sea Block 2 seismic survey no sooner than next November

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

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

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

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

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

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

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

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

Data room for Ionian Sea, Crete offshore blocks now ready

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EDEY, the Greek Hydrocarbon Management Company, has prepared a virtual data room set up to offer prospective bidders information on Cretan and Ionian Sea offshore blocks that will soon be offered through international tenders.

Prospective bidders will be permitted access to the data room, containing information on matters such as seismic, drilling and legal issues, as soon as the tender is published in the EU’s official journal, the OJ. Publication is expected soon.

Bidders, who will be charged a 1,000-euro data room entrance fee, will use the information provided to prepare bids for two international tenders offering licenses west and southwest of Crete as well as the Ionian Sea.

Besides a data room for Athens, equivalent rooms have been set up in London, Oslo, Kuala Lumpur and Houston.

Investors will have 90 days to submit their bids once the tenders are officially announced in the OJ. The appraisal period of offers is scheduled to last two months.

Licenses are then expected to be issued within a three-month period. Once approved by a special committee and Parliament, these licenses will offer investors 8-year terms for exploration and 25 years for production.

A consortium comprised of Total, ExxonMobil and ELPE has already declared an interest for blocks west and southwest of Crete. Energean Oil & Gas is interested in the Ionian Sea offerings.

 

 

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

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

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

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

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

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

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

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

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

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

 

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

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

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

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

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

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

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

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

Crete offshore blocks tender set for EU gazette publication

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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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Total, ELPE chiefs to meet at economic forum in Athens today

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The head officials of ELPE (Hellenic Petroleum) and French petroleum giant Total are scheduled to meet in Athens today during an economic forum at the Stavros Niarchos Foundation, organized by Greek and French business leaders as part of French President Emmanuel Macron’s official two-day visit to Greece, concluding today. Both Macron and Greek Prime Minister Alexis Tsipras are scheduled to attend the forum.

Patrick Pouyanne, Total’s president, who is scheduled to meet ELPE boss Stathis Tsotsoros (photo), is visiting Greece for the second time this year. Pouynanne was also here in May for a European Round Table of Industrialists. The Total boss had met with Tsipras on that occasion.

Total and ELPE, along with ExxonMobil, make up a consortium taking part in an international tender for exploration and exploitation rights concerning two offshore Cretan blocks, one south of the island, the other southwest.

The tender, whose deadline expires in November, was launched by Greece’s hydrocarbon sector authority as a result of an interest expressed by the three oil companies in the aforementioned regions off Crete.

In comments offered yesterday to Greek daily “Ta Nea”, Pouyanne highlighted Total’s investment interest for the Ionian Sea and off Crete. The Total chief also expressed confidence of an imminent Greek economic recovery and satisfactory growth rates in the near future.

Total, which is currently conducting its first drilling venture off Cyprus, co-signed an agreement for Block 2 in the Ionian Sea last March with ELPE and Italy’s Edison. The investment trio is now awaiting Greek Parliamentary approval for this agreement by the end of the year before preliminary work is launched.

As for the two blocks off Crete, two ministerial decisions signed by Greek energy minister Giorgos Stathakis were published in the government gazette last month. These decisions detail the boundaries of both blocks, neasuring 19,868.37 and 20,058.4 square kilometers, respectively.

Appraisal procedures of the Cretan block bids will be completed no later than 60 days following the tender’s November deadline, while licensing agreements will be signed within 60 days of the appraisal’s completion, according to the international tender’s terms published in the government gazette.

 

 

 

French not interested in PPC’s lignite, EDF absence highlights

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The confirmed absence of any EDF representation whatsoever in a French business delegation joining French President Emmanuel Macron on his two-day visit to Greece this Thursday and Friday sends a clear message that the French energy company is not interested in main power utility PPC’s lignite-only unit sale package. A market test for the bailout-required sale is expected to be staged next month.

Though the sale list is still subject to revisions based on ongoing negotiations between the Greek government and the country’s lenders, it has now become perfectly clear, following previous indications, that EDF is not interested in PPC’s lignite-based investment offer.

Last April, on a visit to Athens, officials of Edison, an EDF subsidiary firm, had made clear to Greece’s energy minister Giorgos Stathakis that the approaching PPC unit sale package would need to include hydropower units in order to draw their investment interest.

At the time, Stathakis responded by informing the visiting French officials that the Greek government has made up its mind on the PPC sale and would only put up for sale lignite-related facilities.

CO2 emission restrictions in the EU and the costs that would be entailed in upgrading PPC’s lignite-fired units amount to a major disincentive for the French energy company.

The Greek government would like French participation – either by EDF, or through its subsidiary Edison – in the imminent market test, rather than just Chinese and east European interest, as this would add clout to the overall sale procedure.

Even if the French were to take part without any genuine investment intent, this would provide great support for the message the government is seeking to portray of itself as a business mover.

For months now, the energy ministry has sought to create a convincing impression of a strong lignite investment interest, the underlying reason being to gain time against the European Commission, pushing for the inclusion of hydropower PPC units to the sale package.

Offering consolation to the Greek government, French oil giant Total’s chairman and CEO Patrick Pouyanne will be a part of the French delegation to visit Athens this week. Greece’s energy ministry recently announced an international tender offering two offshore blocks southwest of Crete and west of Crete. The tender was prompted by an initial interest expressed for these areas by a consortium comprised of Total, ExxonMobil and ELPE (Hellenic Petroleum).

 

 

Tenders stir up interest amid survey purchase complaints

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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.

 

 

Crete, Ionian oil exploration tender officially announced

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Greek authorities have officially announced an international tender offering exploration and exploitation licenses for offshore blocks west and southwest of Crete.

The tender was prompted by investment interest expressed in the aforementioned areas by a consortium comprised of ExxonMobil, Total and ELPE (Hellenic Petroleum).

As was expected, leasing agreements will be offered to investors. Taxation rates of 20 percent will be included in the terms, along with a 5 percent regional tax.

According to the international tender’s terms, bid appraisals will be processed over 60 days and agreements signed 60 days after this stage has been completed. This essentially means that the procedure should be completed at the end of this year, or, possibly, early in 2018, assuming no extraordinary delays.

Hydrocarbon licensing changes avoided ahead of Crete tender

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The government has softened its stance on an intention to implement hydrocarbon sector revisions that could offer investors production sharing agreements rather than leasing agreements for new tenders.

Governmemt officials fear that such changes to the licensing system would undermine the prospects of future tenders, including an imminent effort aiming to offer investors blocks off Crete. This upcoing effort has drawn the attention of international oil industry giants such as ExxonMobil and Total.

KYSOIP, the Government Council for Economic Policy, which yesterday endorsed a hydrocarbon sector modernization plan forwarded by energy minister Giorgos Stathakis, decided to keep the current licensing model unchanged – at least for the time being.

The minister’s modernization plan will aim to reduce the amount of time needed by authorities to issue exploration and exploitation licenses.

Though any imminent hydrocarbon leasing model changes should not be expected following yesterday’s KYSOIP decision, future revisions, which would make the Greek State a partner in oil exploration and exploitation ventures, along the lines of models applied in African, Latin American and Central Asian countries, cannot be ruled out.

Cyprus drilling, now started, prompts flurry of diplomatic, military activity

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The West Capella drilling ship hired by a consortium comprised of Total and Eni launched its exploration work at Block 11 in Cyprus’s Exclusive Economic Zone (EEZ) last Wednesday, as was scheduled, amid heightened diplomatic and military activity, as anticipated by the Cyprus government.

Turkey has made clear its intentions to escalate the tension amid the intensifying competition for natural gas and other interests in the region.

The West Capella drilling ship, which has reached Block 11’s sea bed, at 1,698 meters below sea level and on a slight angle towards the southwest, has been given a 21 percent chance of discovering a natural gas field, a relatively high probability rating. Drilling is expected to reach 2,230 meters. The initial results are expected to be determined by mid-September.

As a result of Total’s involvement, France is keeping a close watch on the overall developments. The country’s defense minister Florence Parly, expected in Cyprus today, will visit French frigates that initially arrived in the wider area to contribute to the United Nations Interim Force in Lebanon (UNIFIL) before being moved to Larnaca, on the southern coast of Cyprus, over the past few days.

The visiting French defense minister, who is scheduled to hold talks with her Cypriot counterpart, Christoforos Fokaidis, may also visit Total’s drilling platform.

Besides the French frigates, Cypriot, US and Greek forces have also been deployed to protect the drilling activity and Total’s interests. The region already represents a crucial launching pad for operations in Syria and Iraq.

French President Emmanuel Macron is keeping an open line of communication with the Cypriot government. In addition, Cyprus’s Foreign Minister Ioannis Kasoulidis recently traveled to France for an official visit.

Making the current hydrocarbon exploration activity in Cypriot waters even more complicated, the West Capella drilling ship arrived to the country’s EEZ just days after the breakdown of the latest UN-backed Cyprus reunification talks.

In the lead up to the drilling at Cyprus’s Block 11, a US State Department official declared that the US recognizes Cyprus’s rights to develop sources within its EEZ, adding that Washington will continue to discourage any actions that may escalate tension in the region. This statement has been interpreted as a show of support for the Cypriot government and Total. Many pundits have linked the US support to the prospective interests of US energy giant ExxonMobil in Cyprus and Greece.

The State Department official also added that the US continues to believe that Cypriot oil and natural gas revenues need to be shared fairly between the divided island’s Greek and Turkish communities.

The Cypriot govermnent has declared that Turkey’s aggressive response comes as no major surprise. Fokaidis, the Cypriot defense minister, stressed there is no reason for alarm, adding that “the sooner we stop being involved with what’s happening at the drilling rig the better.”

However, he also admitted the situation is being closely monitored, adding that Cypriot officials are implementing plans they have been trained to implement, cooperating with all interested parties, and remaining focused – seriously and calmly – on the national objective, which is “to fulfil our energy plans.”

 

Crucial times for Cyprus’s hydrocarbon aspirations

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Cyprus’s hydrocarbon aspirations face a crucial test this week as, firstly, ongoing research will determine whether needed additional deposits exist and, secondly, activities planned for the next few days should indicate how far Turkey is prepared to take its reactions.

The West Capella drilling ship hired by a consortium comprised of Total and Eni is scheduled to reach Block 11 in Cyprus’s Exclusive Economic Zone (EEZ) at 3am on Wednesday morning and prepare to start work within 24 hours.

This initiative represents part of a new and ambitious exploration drive that is expected to take about one year to complete.

The findings will be of pivotal importance as they will determine the possible existence and size of hydrocarbon deposits at Block 11, which would emerge as an addition to the deposit already discovered at Block 12. Estimates and forecasts only have real value if confirmed by drilling efforts. All is possible. The result could be an utter disappointment or a major future-altering discovery for the island is also possible.

The endeavor will also test Turkey’s true capacity for reaction, beyond its regular cast of verbal threats, against major international petroleum powerhouses that have acquired rights to Cypriot blocks and are gradually making progress to begin work.

Four drilling endeavors have taken place within Cyprus’s EEZ over the past seven years. Two of these were carried out by US firm Noble Energy, at Block 12, and two by Italy’s Eni, at Block 9.

The deposit discovered within Block 12, dubbed Aphrodite, may have provided momentum to Cyprus’s overall hydrocarbon drive, but its quantity, alone, is not sufficient to make the development of gas storage and transmission projects sustainable. The discovery of a new deposit is crucial as it could provide the additional hydrocarbon quantity that is needed to make such investments worth pursuing.

The discovery of Zohr, a gigantic deposit in Egypt’s maritime zone, has turned the attention of major petroleum firms to Cyprus. France’s Total has joined forces with Italy’s Eni to explore Blocks 11 and 6, while Eni has acquired exclusive rights for Block 8.

Also, the world’s largest oil and gas company ExxonMobil, until recently led by US Secretary of State Rex Tillerson, has been joined by another industry giant, Qatar Petroleum, for the rights to explore Cyprus’s Block 10.

The upcoming hydrocarbon exploration endeavors planned for Cyprus have been made more complicated by the breakdown, just days ago, of latest UN-backed Cyprus talks in search of a reunification deal.

Reacting to previous exploration endeavors around Cyprus, Turkey has responded in a standard way, sending a seismic vessel into Cypriot EEZ waters, accompanied by at least one frigate monitoring from a distance. Turkish reaction will certainly not be missing this time either, and could well be stronger following the recent collapse of the Cyprus reunification talks. Just how far Turkey is prepared to go remains to be seen.