Monday, December 4, 2023
 
 

Prompted by Egypt’s Zohr find, Total-Exxon will hunt hydrocarbons off Crete

Repsol, Hellenic Petroleum join in Ionian Sea bid

- Advertisement -

ATHENS – A French-led consortium from Total and US energy giant ExxonMobil, each with 40% stakes, as well as Hellenic Petroleum, have submitted a bid to explore for hydrocarbons off western and southwestern Crete, opening the potential for new discoveries in the region and exports to Europe, while boosting the EU’s energy security.

Spain’s Repsol and Hellenic Petroleum have in the mean time submitted a joint bid for a block in the Ionian Sea. On March 5, Greece’s Energy Minister Giorgos Stathakis welcomed the interest of major companies for hydrocarbon exploration offshore Greece, saying, “It is a vote of confidence in the prospects of the Greek economy and the country’s role as a stabilising factor in the Southeast Mediterranean region”. However, industry sources noted that the market expectation was for higher participation.

The Hellenic Hydrocarbon Resources Management (HHRM) will evaluate the bids on the basis of which Greece’s Environment and Energy Ministry will decide.

Commenting on the decision of Exxon and Total to explore off the Cretan coast, energy expert John Roberts told New Europe on March 6 the fact that two of the most prominent companies engaged in prospecting for gas in the Cypriot offshore are also looking for gas in the nearest Greek offshore areas that are closest to Cyprus is highly important.

“If they were to make a commercial discovery it would have two major consequences,” Roberts said, who was in Athens on March 5 to participate in a conference by IENE.

“The first is that it would demonstrate that the Eastern Mediterranean energy province is much greater than previously thought, the second is that it would significantly improve the economics for an Eastern Mediterranean gas pipeline between the fields that have already been discovered in Israel, Cyprus, and Egypt and a landing point in Italy from which it could serve the major markets in Western Europe. But it is still a very big ‘if’ and we probably won’t know whether either of these consequences will come about for quite a few years,” he added.

Meanwhile, Cyprus Natural Hydrocarbons Company CEO Charles Ellinas told New Europe on March 7 that the Total-Exxon bid is good news for Greece as it opens up the potential for new, major, hydrocarbon discoveries. He noted that these companies were attracted to the region by the discovery of Zohr off of Egypt.

“As a result of the success with Zohr and now Calypso in Cyprus, the East Med is becoming very attractive for the industry,” Ellinas said. “Another factor is that these are areas free of conflict and geopolitics, something which poses major challenges in the rest of the East Med,” he added.

He explained that these are international majors with the technical and financial capabilities needed to explore and develop hydrocarbon resources in the challenging areas west of Crete and Greece, where water depths can exceed 2,000 metres and the total depth of potential reservoirs can reach 5,000 metres.

“For Greece it has been a tortuous path getting to this stage, following a number of disappointing attempts and more than 50 years of trying. What has become clear in 2017 is that the Greek Ministry of Energy and HHRM are now giving priority to the hydrocarbons sector and are ready to work with the international oil companies needed to develop it,” Ellinas said, adding that these developments bode well for Greece, which has been struggling with a severe debt crisis in the past few years.

“Resuming efforts to search for and develop Greece’s hydrocarbons sector can only help. Success can possibly lessen the country’s dependence on energy imports in the future and actually become an energy exporter, something which has the potential to shore up its battered economy,” he said.

The proximity to Europe makes getting any discovered oil and gas there more competitive and less challenging in comparison to the East Med, Ellinas said.

Turning to ExxonMobil drilling in Block 10 in Cyprus’ Exclusive Economic Zone (EEZ), Ellinas expressed his hope that it can proceed as planned.

“This is crucial. Much hangs on the more optimistic indications from the evaluation of seismic data that has shown that Block 10 may hold significant amounts of natural gas, in formations similar to nearby Zohr,” he said. “A major discovery there could alter the gas balance and associated geopolitics in the region. It could put ExxonMobil at the forefront of future gas developments and would rekindle interest in the region. It would also increase pressure on all sides to solve the Cyprus problem, to unlock the gas riches of the region,” Ellinas added.

follow on twitter @energyinsider

- Advertisement -

Subscribe to our newsletter

Co-founder / Director of Energy & Climate Policy and Security at NE Global Media

Latest

US-Central Asia relations: It’s time for a Green 5+1

During the United Nations General Assembly in September, a...

Ukraine, Middle East will dominate Cameron’s UK foreign policy agenda

David Cameron, who was made Foreign Secretary in a...

What will it take to prevent a Gaza reconstruction fiasco?

Let us be unequivocal about the current war between...

Don't miss

US-Central Asia relations: It’s time for a Green 5+1

During the United Nations General Assembly in September, a...

Ukraine, Middle East will dominate Cameron’s UK foreign policy agenda

David Cameron, who was made Foreign Secretary in a...

What will it take to prevent a Gaza reconstruction fiasco?

Let us be unequivocal about the current war between...

Ukraine’s persecuted mayor

Lest it be forgotten, the major thematic issue in...

US-Central Asia relations: It’s time for a Green 5+1

During the United Nations General Assembly in September, a historic meeting took place: President Joe Biden met with the presidents of the five nations...

What will it take to prevent a Gaza reconstruction fiasco?

Let us be unequivocal about the current war between Israel and the Palestinian terrorist organization Hamas - the latter declared this war on Israeli...

Cameron’s return as Foreign Secretary raises UK’s international profile

David Cameron, who was made foreign secretary in a surprise move by Prime Minister Rishi Sunak during his cabinet reshuffle on November 13, brings...

Russia’s powerful economic levers over Armenia

Armenia's relations with its strategic partner Russia are getting worse and worse and its leaders seem to desire a shift in geopolitical orientation towards the West....

Economy Minister says Kazakhstan to expand investment and diversify trade with Europe

Kazakhstan’s Minister of National Economy, Alibek Kuantyrov, spoke to NE Global in an exclusive interview about his country's relations with Europe, Astana's economic partners,...

New US actions against corruption and Russian malign influence in the Western Balkans

On November 16, the US Department of the Treasury’s Office of Foreign Assets Control, known by its acronym OFAC, designated eight individuals and six...

The EU Green Deal is a barrier to trade and global partnerships

There is an English saying that if you can’t see the wood for the trees, then you should step back and then you will...

IEA warns transitions bring new risks to energy security

Clean technology and critical mineral supply chains are highly geographically concentrated, the International Energy Agency warned in its World Energy Outlook for 2023 and...