Chevron Expands Exploration Footprint in Greek Mediterranean

Chevron Corp has signed an agreement to acquire a 70 percent operating stake in Block 10 on Greece's side of the Mediterranean Sea from Helleniq Energy Holdings SA.

Helleniq Energy said in a press release it will retain a 30 percent interest. "The partnership combines Chevron’s technical and operational capabilities with HELLENiQ ENERGY's established domestic portfolio, supporting a balanced approach to risk-sharing while maintaining exposure to future exploration upside", the Greek company said.

"Block 10 is currently in its second exploration phase, where both 2D and 3D seismic studies have been completed, providing a more advanced understanding of the subsurface and supporting the evaluation of potential future drilling targets", it said.

"As exploration activity progresses, the partnership is expected to focus on further de-risking the asset through additional technical evaluation and potential drilling phases, in line with the broader development of Greece’s offshore exploration sector".

Chevron and Helleniq Energy have now expanded their partnership in Greece to five offshore concessions.

"Chevron's entry into Block 10 further strengthens our existing partnership and aligns the interests of both companies across all blocks in the Southern Ionian, creating a significantly larger exploration area in which we jointly participate", said Helleniq Energy chief executive Andreas Shiamishis.

"Flexibility within our portfolio, along with the ability to operate across a broader acreage position, are key factors in attracting leading international energy companies and unlocking potential synergies".

Andrew Deighan, Chevron director for exploration in the Middle East and North Africa, said, "This is another key milestone for Chevron as we continue to build momentum in the Mediterranean region, an area where we are looking to further expand and strengthen our global exploration portfolio".

Chevron and Helleniq Energy said February 16 they have jointly entered into lease agreements to explore four blocks in the Greek Mediterranean. Two of the blocks are in the south of the island of Crete, South Crete 1 and South Crete 2, and two are in the Peloponnese peninsula, Block A2 and South of Peloponnese. The areas cover about 47,000 square kilometers (18,146.79 square miles) in total, according to Helleniq Energy.

The agreements provide for a three-phase exploration program, it said.

"The target areas lie in ultra-deepwater settings - some beyond 1,500 meters [4,921.26 feet] of sea depth - with complex geological structures", Helleniq Energy added.

Chevron said, "Under the terms of the lease agreements, the consortium will complete 2D and 3D seismic exploration work programs in phase one of the leases, to assess the hydrocarbon potential of the areas".

Chevron owns a 70 percent operating stake in the partnership. Helleniq Energy holds 30 percent.

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