A meeting was held regarding Block 10 at the Ministry of Environment and Energy. The meeting was attended by the Minister of Environment and Energy, Mr. Stavros Papastavrou, the Deputy Minister, Mr. Nikos Tsafos, the Secretary General of Energy and Mineral Raw Materials, Ms. Despina Paliaroutou, the United States Ambassador to the Hellenic Republic, Ms. Kimberly Guilfoyle, the CEO of the Hellenic Hydrocarbon and Energy Resources Management Company (HEREMA), Mr. Aristofanis Stefatos, the Middle East and North Africa Exploration Director of Chevron, Mr. Andrew Deighan, the CEO of HELLENiQ ENERGY, Mr. Andreas Siamisiis, as well as other senior executives from the companies.
Read: Kimberly Guilfoyle: Participated in event celebrating Greece-US maritime ties
Ministry of Environment and Energy: Procedures for Chevron’s participation
During the meeting, Messrs. Papastavrou and Stefatos informed both companies about the completion of all administrative steps/approvals for the transfer of participation percentage in the Lease Agreement and the assumption of the operator role in Block 10 by Chevron. This was followed by discussions with the Consortium representatives about next steps and the potential timeline for this specific concession.
This followed the official request on May 28 from companies Chevron and HELLENiQ ENERGY for Chevron’s participation in the AREA 10 (Block 10) concession, which is located offshore in the Kyparissiakos Gulf, in the maritime area of the southern Ionian Sea, as well as for the transfer of the operator role from HELLENiQ ENERGY to Chevron. Additionally, the operator had submitted a request to HEREMA for a 15-month extension of the 2nd Exploration Phase in Block 10.
With the completion of the approval process for the requests by the Ministry of Environment and Energy and HEREMA, and the corresponding Foreign Direct Investment (FDI) approval from the Ministry of Foreign Affairs, the path is now officially open for completing the farm-in transfer between the two companies, which is expected within the coming days. After completion of the transfer procedures, Chevron will hold 70% of the concession and the operator role, while HELLENiQ ENERGY’s percentage will be adjusted to 30%.
It should be noted that the research programs for the 1st and 2nd Exploration Phases of the Basic Research Stage in the concession have been completed, with geological, geophysical and environmental studies conducted. With the acquisition of 1,210 kilometers of 2D seismic data in 2022, the available database initially increased by 40%, followed by the first-time acquisition of 2,416 square kilometers of 3D seismic data covering 88% of the concession. The new Consortium will jointly evaluate the data to decide on entry into the 3rd Exploration Phase, which includes conducting exploratory drilling.
Lease agreements
It is recalled that Chevron – HELLENiQ ENERGY have already signed lease agreements with the Hellenic Republic for four new offshore areas, south of Crete and south of the Peloponnese, with Block 10 being the fifth concession in which the Consortium now operates.
During the meeting, the Minister of Environment and Energy, Mr. Stavros Papastavrou stated: “Today the procedures for Chevron’s entry into Block 10 were completed. The participation of Chevron, one of the world’s largest energy companies, in the country’s fifth offshore area for hydrocarbon exploration, represents another significant step toward responsible utilization of our national resources.
An utilization that is carried out according to the highest international standards, aimed at strengthening our homeland’s energy security and the possibility of significantly increasing public revenues. At the same time, it confirms the confidence of leading international investors in our homeland’s prospects and in the stable and effective framework that has been developed in recent years.
Greece has been established as a reliable energy partner in the wider Eastern Mediterranean region. With consistency and planning, it strengthens our energy resilience, attracts high value-added investments and continuously upgrades its geostrategic position. I want to thank the staff of the Ministry of Environment and Energy, HEREMA, as well as the representatives of Chevron and HELLENiQ ENERGY for their excellent cooperation, which allowed us to complete the process in record time. We continue with confidence and determination, so that Greece can fully utilize its capabilities, for the benefit of citizens and future generations.”
“Deepens energy architecture”
US Ambassador Kimberly Guilfoyle commented: “The development of Greece’s hydrocarbons, which is promoted through partnerships such as that between Chevron and HELLENiQ ENERGY, with the support of the Ministry of Environment and Energy and HEREMA, deepens and strengthens the region’s energy architecture. In this way, it accelerates Greece’s emergence as a dynamic regional energy hub and as a strategic pillar of Southeast Europe’s energy security. It proves that when the United States and its closest allies work together as one, they can achieve substantial results.”
From the Consortium’s side, Chevron’s Middle East and North Africa Exploration Director, Mr. Andrew Deighan, noted: “This is another significant milestone for Chevron as we continue to build our momentum in the Mediterranean region, an area where we seek to further expand and strengthen our global portfolio of exploration activities.
Together with our partner, HELLENiQ ENERGY, and the Hellenic Republic, we look forward to evaluating the hydrocarbon potential in Block 10, which is located in an interesting, under-explored area. Chevron has significant expertise in developing oil and natural gas projects globally. We believe that the combination of experience and support from our partner, in synergy with our own resources and technological capabilities, will contribute to promoting and utilizing new energy sources in the region.”
Meanwhile, HELLENiQ ENERGY CEO Mr. Andreas Siamisiis added: “Chevron’s entry into Block 10 complements our existing cooperation and aligns the two companies’ percentages across all blocks in the southern Ionian, thus forming a much larger exploration area where we participate jointly. Mobility and flexibility in concession portfolios and the ability to operate in larger areas is something that attracts leading industry companies and allows synergies, initially in exploration and possibly later in development.
The work we had already completed in Block 10 in previous years allowed better evaluation of prospects and Chevron’s entry into the entire portfolio. The diversification of our percentage is a move fully compatible with the strategic management of exploration areas as a dynamic portfolio, in which changes can and should be made according to prevailing conditions. The steady strategy and substantial work of recent years, as well as faster response and cooperation with competent authorities, creates the conditions for such dynamic moves, which can only positively affect the Company, our country, and the region more broadly.”
Finally, the CEO of the Hellenic Hydrocarbon and Energy Resources Management Company (HEREMA), Mr. Aristofanis Stefatos, emphasized: “The successful completion of all required approvals for Chevron’s entry into Block 10, in less than 20 days, constitutes another excellent administrative performance and another significant milestone for the Greek hydrocarbon exploration program. I must personally thank the Minister, Mr. Stavros Papastavrou, and the Ministry staff for their excellent cooperation that enabled this unprecedented speed of performance. We welcome Chevron taking the operator role in another exploration concession in Greece, and look forward to continuing cooperation with the Chevron-HELLENiQ ENERGY Consortium for the next phase of work in Block 10. This is a development that once again confirms the confidence of leading international investors in the country’s offshore potential, and demonstrates the ability of the Greek State and its institutions to support strategic investments with speed, effectiveness, and transparency.”
