Posted By Global Banking and Finance Review
Posted on January 20, 2025
ATHENS (Reuters) -Chevron is interested in energy exploration in Greece, the U.S. oil producer and the country's energy ministry said on Monday.
Chevron has submitted a non-binding expression of interest for one open block to Greece's Hellenic Hydrocarbons and Energy Resources Management Company (HEREMA), the company confirmed.
The government welcomed Chevron's expression of interest. A decision will be issued this week on the exact area of exploration and an international tender will be launched soon, the ministry said in a statement.
"It is a very important development, part of our national strategy for energy independence and reducing energy costs," it said.
Chevron operates gas fields in Israel and has interests in Egypt and Cyprus.
"Chevron has a large and important position in the Eastern Mediterranean, a region which is very much a part of our future and a priority for us," a company spokesperson said.
The area being looked at ranges from southwest of the Peloponnese peninsula to west of the island of Crete, the Greek ministry said.
With the new tender, the research area for exploration will eventually be increased by 25%, or by 11,000 square kilometres (4,250 square miles), government spokesperson Pavlos Marinakis said.
The European Union has sought ways to reduce its reliance on Russian gas following Russia's invasion of Ukraine. That has increased the need for Greece to tap domestic resources.
Greece, which views gas as a transition fuel as it ramps up its renewable energy capacity, has produced small quantities of oil in the past and has attempted to explore its hydrocarbon potential.
In October, the country said that an ExxonMobil-led consortium would move to the second phase of seismic research for gas exploration in a block off Crete.
In the meantime, some already licensed offshore areas in the Ionian Sea would be released to expand a planned marine park, the ministry said on Monday, adding that an agreement had already been reached with the licensees on the issue.
Greece, which in 2020 signed an agreement on maritime boundaries with Italy, aims to create two marine parks in the Ionian and Aegean seas, for the protection of marine biodiversity, sea mammals and seabirds.
A government official told Reuters that environmental studies on the Ionian marine park - a first step in defining its boundaries - would be ready this month.
(Reporting by Angeliki Koutantou, Renee Maltezou, Lefteris Papadimas and Ron Bousso; Writing by Renee Maltezou, editing by David Goodman, Mark Potter and Jason Neely)
