When do investors decide and what did the Deputy Minister of Development reveal about the first drillings
The search for natural gas deposits in the five blocks of Western Greece and Crete is at a critical juncture.
The investors who have leased the specific areas are called upon within 2024 to make their decisions on whether or not to continue their research programs.
The data of the seismic surveys
The large program of seven seismic surveys was completed in February 2023 in the marine blocks “Ionio” and “10 – Kyparissiakos Kolpos” by the lessee company HELLENiQENERGY, “2 – NW of Corfu” by the Energean scheme – HELLENiQ ENERGY and “West of Crete ” and “Southwest of Crete” from the scheme “ExxonMobil – HELLENiQ ENERGY”.
According to ot.gr, the oil companies have in their hands the results of the seismic surveys carried out by the special vessels and are now reading and analyzing them in order to evaluate the material in terms of the content and quantity of geological structures in natural gas fields.
A total of 12,583 square kilometers of subsurface mapping was done and 53 million euros were spent on seismic surveys.
The information, and according to what has been said publicly by executives of the Hellenic Hydrocarbons and Energy Resources Management Company (EDEYEP) as well as by scientists, is encouraging as to the existence of such quantities, even for natural gas exports to Europe. These estimates show the two sea blocks of Crete.
The decisions
As mentioned above, 2024 will be the year of investment decisions by the oil companies for the maritime concessions of Crete and the Ionian Sea.
Last October the CEO of HELLENiQ ENERGY, Mr. Andreas Siamisii, speaking at a BSE conference, noted that “the data collected from the seismic surveys are in the processing phase, and in 6-12 months a decision can be made regarding the possibility of exploratory drilling ». He hastened to add: “We don’t hear about huge deposits seriously”, stressing that a lot of time is needed to be able to safely talk about such a thing.
So everything shows that in 2024 the investment decisions will be made answering the dilemma: “Drilling or withdrawal”.
In the marine areas of Crete, if 3D seismic surveys are also required, then this answer will be given in 2025 and the first research drilling will take place in 2026.
The Deputy Minister of Development Mr. Maximos Synetakis speaking on December 16 at a conference organized by the TEE in Heraklion, Crete on the topic “Hydrocarbons, energy transition, hydrogen. Crete as an energy hub”, he determined the time of the first drillings.
He estimated that “investment decisions will be made in 2024 to 2025 and the first drilling will be done in 2026”, in the event that the results of the seismic surveys are such as to allow them.
The faster drilling scenario
If ExxonMobil does not proceed with 3D seismic surveys in the two offshore blocks of Crete, then the first exploratory drilling will come a year earlier, i.e. in the first half of 2025.
Such a scenario is very likely, according to information, if we also evaluate the fact that recently, last October, the CEO of EDEYEP Mr. Aris Stefatos together with ExxonMobil and HELLENiQ ENERGY executives visited the ports of Souda, Patras and of Igoumenitsa in order to be informed about the readiness and availability of their infrastructure to accommodate the necessary equipment of the oil companies for drilling.
Ioannina
However, the most mature area for the first exploratory drilling is the land concession of Ioannina, which has been leased by Energean.
At the end of November, the Ministry of Environment and Energy issued the Decision of Approval of the Environmental Conditions for the first exploratory drilling. “Epiros-1” will be performed in the Molossi Municipal Unit of the Zitsa Municipality of Ioannina.
In the first phase, the company thoroughly studies the AEPO and will then proceed with the design of the drilling project.
However, this particular phase of exploratory drilling, which ends in April 2024, will reportedly require an extension.
Then the specific deadline expires.
New investors
However, 2024 cannot be ruled out to be the year of entry of new investors into the Greek upstream.
Information wants the existing contractors, namely HELLENiQ ENERGY, Energean and ExxonMobil to look for oil companies – partners for the implementation of their research programs in the Greek concessions.
Each drilling especially in the marine areas costs 100 million euros, so the cost needs to be shared.
The existing oil companies are in the phase of searching for partners and its fate will largely determine their investment decisions.
Source: ot.gr
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