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ELPE, Exxon, Total express exploration interest for broad offshore area

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A powerhouse consortium comprised of ExxonMobil, Total and ELPE (Hellenic Petroleum) has expressed an interest to Greek authorities for hydrocarbon exploration work covering a gigantic offshore expanse southwest of the Peloponese and stretching all the way to the island Gavdos, south of Crete, according to souces.

Quite clearly, the trio is interested in exploring deep-sea regions for which sufficient data does not yet exist. The only favorable hydrocarbon hints at this stage are limited to encouraging signs provided by previous seismic surveys at specific areas.

The wider area of interest, measuring numerous square kilometers, includes offshore blocks that had been incorporated into an international hydrocarbon tender back in 2013.

The areas framed by the consortium are not located in any disputed zones. All are clearly located within Greece’s Exclusive Economic Zone (EEZ), as prescribed by the United Nations Convention on the Law of the Sea.

The Greek State does not face any deadline as to the time period it has at its disposal to respond to the consortium’s proposal. However, once the proposal has been officially received, the Greek State will need to publish the consortium’s expression of interest in the Official Journal of the European Union (OJ), formalizing its acceptance and setting the terms of an international tender. The publication will need to remain in the OJ for at least one month.

An announcement of a tender within the current year, followed by the launch of seismic survey work in 2018, whose results will determine future moves, is viewed as timely progress.

ELPE, ExxonMobil, Total eyeing blocks in Ionian, south of Crete

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ELPE (Hellenic Petroleum), ExxonMobil and Total officials are currently processing data in order to identify locations of interest with the objective of submitting an exploration and exploitation offer to the Greek State and EDEY, the Greek Hydrocarbon Management Company, by August, as one consortium.

This expression of interest by the prospective consortium will prompt local authorities to launch a related tender.

According to sources, the three companies are focusing their interest in the Ionian Sea’s north, as well as south of Crete, all the way to the small island of Gavdos, Greece’s southernmost point.

As these locations are high-risk, high-cost deep-sea areas, ELPE will look to establish a consortium offering its partners fair shares for their demanding roles. ExxonMobil and Total are expected to take on shares of 40 percent each with ELPE holding 20 percent in the venture. Drilling ventures at waters of such depths are estimated to cost approximately 100 million dollars each.

ExxonMobil’s extensive experience in deep-sea exploration and financial strength were key factors in the interest shown by ELPE for the establishment of a partnership as the areas of interest are challenging, both technically and financially.

ExxonMobil has already purchased a package of seismic data produced following survey work conducted by Norwegian firm PGS three years ago.

Energean Oil & Gas also expressed an interest, yesterday, in the new round of offshore licenses expected to be offered by the Greek State. The company plans to capitalize on its expertise being gained at Israeli offshore blocks.

At this stage, it appears that Energean Oil & Gas and Repsol, currently conducting joint onshore exploration work in west Greece, at blocks in the Ioannina and Etoloakarnania areas, will attempt to broaden their venture to the sea extensions of these blocks.

 

 

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

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

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

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

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

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

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

Ministry appoints adviser for pending hydrocarbon licenses

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

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

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

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

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

ELPE partners for Ionian block exploration waiting for green light

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

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

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

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

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

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

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

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

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

 

 

 

 

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

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

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

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

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