ExxonMobil Extends Exploration Offshore Greece by over Three Years

Exxon Mobil Corp. and its local partner are set to launch a second phase lasting over three years for an exploration campaign in a block off the Greek island of Crete to decide whether to pursue development, the country’s hydrocarbon licensing authority said Thursday.

The Southwest of Crete is one of six active exploration concessions in the Mediterranean nation. A preliminary assessment identified the hydrocarbon potential in the block to be natural gas, according to the Hellenic Hydrocarbons and Energy Resources Management Co. (HEREMA SA).

The first exploration phase, which involved offshore geophysical surveys, has now been completed with 3,250 kilometers (2,019.4 miles) of 2D seismic data collected. “The total work conducted well exceeded the minimum investment stipulated in the respective Lease agreement, amounting to 5,000,000 euros ($5.5 million)”, HEREMA said in a statement. “Moreover, the survey itself also exceeded the minimum Work Program; a total of 7,789km (4,839.8 miles) of seismic data was collected, well over the JV’s minimum contractual obligation of 3,250km”.

For the next phase, a minimum requirement has been set for operator ExxonMobil and co-venturer HELLENiQ ENERGY Holdings SA to complete the collection and assessment of 3D seismic data.

“Multichannel seismic data acquired in 2012 indicated the existence of carbonate structures analogous to recent gas discoveries made in the Eastern Mediterranean (Egypt and Cyprus)”, HEREMA says on its website.

Southwest of Crete spans 19,868.4 square kilometers (7,671.2 miles). The block has water depths of 2,080 meters (6,824.1 feet) to 4,500 meters (14,763.8 feet)

United States energy giant ExxonMobil holds a 70 percent stake in the lease while the local partner owns the remaining 30 percent.

HEREMA chief executive Aristofanis Stefatos said investors’ resolve with their exploration activities “verifies our estimates that the Greek subsurface could potentially hold significant natural gas deposits”. Last year HELLENiQ decided to continue to a second exploration phase for Block 10 and the Ionian block.

“And, in turn, these deposits can drive the country’s economic growth and enhance the energy security of the wider region”, Stefatos added.

“I’d like to stress our excellent collaboration with the investors who have already completed a significant part of their contractual obligations for the second phase as well”.

Greece has three fields put into production — Epsilon, Prinos and Prinos North. Prinos started production 1981. Prinos North, developed as a satellite field to Prinos, followed suit 1997. Epsilon became the third production field in Greece in 2019. All three are owned by London-based Energean PLC.

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