After 40 years, the path opens for the realization of the first exploratory drilling in Greece, in a particularly interesting area as the potential resources, according to previous surveys, reach 200 billion cubic meters of natural gas. According to the new energy mega-deal provisions, in case of hydrocarbon deposit discovery, ExxonMobil will assume operatorship during the development phase. It is also anticipated that Block 2 represents the most mature concession in Greece regarding exploratory drilling readiness. The exploratory drilling is scheduled for late 2026 to early 2027. If commercially viable deposits are confirmed, investments of approximately 5 billion euros will follow for gas extraction, processing and transportation facilities, with gas flow expected after 2030.
Greece is at the center of American plans for a dramatic increase in available US liquefied natural gas quantities distribution, which became clear after the first day of the Trans-Atlantic Energy Cooperation (P-TEC) summit, with high-level representation of three American ministers and the signing of the offshore drilling agreement in the Ionian Sea. “Greece will have special significance for both Europe and the world, as it will serve as the point through which American gas will be channeled to Europe. This has enormous economic and political significance,” emphasized Alexandros Exarchou, CEO of ATLANTIC – SEE LNG TRADE S.A. and chairman and CEO of AKTOR Group, speaking at the OT FORUM and announcing a new LNG deal within 36 hours.
What the ExxonMobil agreement with Helleniq Energy provides
ExxonMobil, Energean and HelleniQ Upstream companies announced the Farm-In Agreement for ExxonMobil’s participation in Block 2 concession, located in the northwestern Ionian Sea, adjacent to Italy’s Exclusive Economic Zone (EEZ).
Based on the agreement:
– ExxonMobil acquires 60% of the concession.
– Energean retains 30% participation, from 75% previously.
– HelleniQ Energy maintains 10% participation, from 25% previously.
– Energean will remain Operator during the exploration phase.
– In case of hydrocarbon deposit discovery, ExxonMobil will assume operatorship during the development phase.
– Block 2 represents the most mature concession in Greece regarding exploratory drilling readiness. The relevant decision for conducting drilling will be made by the consortium in the near future.
– Transaction completion is subject to approval by competent state authorities and fulfillment of standard closing deliverables.
Where drilling operations will focus
The agreement was signed within the framework of the Trans-Atlantic Energy Cooperation (P-TEC) while it’s noted that the existence of an oil system in Western Greece (Western Katakolon) and the Adriatic Sea has been confirmed.
“Block 2” is located in the Ionian Sea, 30 km west of Corfu. The western boundary is the Greece-Italy maritime border and water depths range from 500m to 1,500m, with the area belonging to the Apulia Platform geological unit.
Under the agreement, ExxonMobil acquires 60% of the concession, while Energean’s share is reduced to 30% (from 75% previously) and Helleniq Energy’s to 10% (from 25%).
Mitsotakis: Historic moment for Ionian drilling agreement
“Today we write a new chapter in Greece’s energy history,” noted Kyriakos Mitsotakis after the ExxonMobil participation agreement for hydrocarbon exploration in Block 2 in the Ionian Sea.
In his message, the Prime Minister, referring to the agreement between ExxonMobil, Energean and HelleniQ Energy for ExxonMobil’s participation in Block 2 concession in the Ionian Sea, emphasized that Greece is taking the next big step.
“With the new agreement, the company commits to proceed with exploratory drilling immediately, a process that can begin within 18 months,” he added.
The Prime Minister noted that “this is not just another investment. It is the first exploratory drilling in our homeland in almost 40 years.”
Kyriakos Mitsotakis stated it is “a historic moment, an act of responsibility and vision. We implement our commitment: We utilize our national wealth with planning and vision.”
Doug Burgum: Ensuring our allies no longer depend on adversaries
US Interior Secretary Doug Burgum, referring to today’s agreement, noted in his post that under the US President’s leadership “we ensure that our allies will no longer depend on our adversaries for their critical energy needs.”
He characteristically states in his post: It was my honor to join @USAmbassadorGR and @SecretaryWright in Greece to witness the signing of @exxonmobil’s agreement to expand natural gas exploration in Western Europe. Under @POTUS leadership, we’re ensuring our allies will no longer depend on our adversaries for their critical energy needs.
Chris Wright: US proud to partner with Greece
In his X post, Chris Wright referred to the historic agreement that will restart offshore drilling in the Ionian after 40 years, emphasizing that the US is proud of its cooperation with Greece.
“Today in Athens, ExxonMobil signed a historic agreement with Greek EnergeanPLC to restart offshore natural gas drilling in the Ionian Sea for the first time in over 40 years.
The United States is proud to partner with Greece as we restore sanity and unleash affordable, reliable, and secure energy!” wrote the US Energy Secretary on the social media platform.
Mitsotakis speech at Trans-Atlantic Energy Cooperation Summit (P-TEC)
Tomorrow, Friday, the Trans-Atlantic Energy Cooperation Summit (P-TEC) work continues.
Prime Minister Kyriakos Mitsotakis will be at the Zappeion, while US Energy Secretary Chris Wright will speak again.
