Corfu, October 31 – Energean Group CEO Mathios Rigas announced on Thursday that the company’s most probable drilling location in Greece will be block 2, situated west of Corfu. The announcement was made during his intervention at the 4th Economic Conference organized by Naftemporiki newspaper.
Energean Takes Over Block 2 After Total’s Exit
Block 2, located in the Ionian Sea west of Corfu, was previously held by French energy giant Total and Greek company ELPE (Hellenic Petroleum). After Total made the strategic decision to withdraw from the project, Energean assumed control of the exploration block.
“That’s where Total and ELPE were once. Total made the decision to leave. So we took the block into our own hands, we did the seismic surveys and we are ready to start the first drilling,” Rigas told conference attendees.
The CEO emphasized that the company has completed all necessary seismic surveys in the area and is now prepared to commence drilling operations. However, he acknowledged that administrative and regulatory obstacles remain a concern.
Drilling Expected Within Two Years
Rigas expressed cautious optimism about the timeline for beginning exploration activities in the block. “I hope that we will not have the known obstacles and that we will be able to see the first drilling in the next two years. And only then will we know if there is oil or natural gas. We will only know when we do the drilling,” he stated.
The reference to “known obstacles” appears to allude to bureaucratic and regulatory challenges that have historically delayed energy exploration projects in Greece. Environmental concerns and local opposition have previously slowed or halted drilling operations in various parts of the country.
The CEO stressed that until actual drilling takes place, it will be impossible to determine whether the block contains commercially viable quantities of oil or natural gas. Seismic surveys can indicate geological structures that may contain hydrocarbons, but only exploratory drilling can confirm their presence and assess their economic potential.
Energy Production Critical for Greece, Says Rigas
During his presentation at the economic conference, Rigas emphasized the importance of domestic energy production for Greece’s economy and energy security. He cited several countries as examples of nations that have benefited from developing their own energy resources.
“Rigas pointed out the need for energy production in the country and cited the US, Russia, the Gulf countries and Israel as examples,” according to the conference report.
Israel, in particular, has emerged as a relevant comparison for Greece. Over the past 15 years, Israel has discovered significant natural gas reserves in the Eastern Mediterranean, transforming the country from an energy importer to a potential exporter. The Leviathan and Tamar gas fields have provided Israel with energy independence and created new economic opportunities.
Greece has been exploring its potential hydrocarbon resources in both the Ionian Sea, west of the mainland, and in the waters south and southwest of Crete. The country’s energy strategy aims to reduce dependence on imported energy while potentially creating new revenue streams and employment opportunities.
Energean’s Operations in the Region
Energean is a London-listed independent energy company with significant operations in the Mediterranean region. The company has been active in Israeli waters, where it operates the Karish and Tanin gas fields, and has exploration and production activities in Egypt, Italy, Croatia, and Greece.
The company’s interest in Greek waters represents part of a broader strategy to develop Mediterranean energy resources. Block 2 west of Corfu is one of several exploration blocks that have been licensed by the Greek government to energy companies in recent years.
The Ionian Sea region has been considered prospective for hydrocarbon exploration due to its geological characteristics, which are similar to those found in productive areas of the Adriatic Sea off the coast of Italy and Albania.
Regulatory and Environmental Considerations
Energy exploration projects in Greece must navigate a complex regulatory environment that includes environmental impact assessments, consultations with local communities, and approvals from multiple government agencies. The waters around Corfu, a major tourist destination known for its natural beauty, present particular sensitivities.
Environmental organizations have historically raised concerns about offshore drilling in the Ionian Sea, citing potential risks to marine ecosystems and the tourism industry. The Greek government has sought to balance energy development objectives with environmental protection and the preservation of tourism, which is a critical sector of the national economy.
Energean has not yet disclosed the specific timeline for obtaining final regulatory approvals or the estimated investment required for the drilling campaign in block 2. Industry analysts note that offshore exploratory drilling typically requires investments ranging from tens to hundreds of millions of euros, depending on water depth, geological complexity, and the number of wells drilled.
Implications for Greece’s Energy Future
The potential development of hydrocarbon resources west of Corfu could have significant implications for Greece’s energy landscape. The country currently imports the majority of its natural gas and oil, making it vulnerable to price fluctuations and supply disruptions in international energy markets.
Successful discovery and development of domestic energy resources could enhance Greece’s energy security, reduce its trade deficit, create employment opportunities, and generate tax revenues for the government. However, the timeline from discovery to production typically spans many years and requires substantial capital investment.
The announcement comes at a time when European countries are seeking to diversify their energy sources and reduce dependence on imports, particularly following recent geopolitical tensions that have disrupted traditional energy supply chains.
Energean’s commitment to proceed with drilling in block 2 represents a vote of confidence in the geological potential of Greek waters and the country’s regulatory framework for energy development. The results of the planned drilling operations will be closely watched by the energy industry, government officials, and environmental groups alike.
Source: https://www.naftemporiki.gr/english/2027085/mathios-rigas-energean-at-the-4th-economic-conference-of-n-the-most-likely-drilling-is-in-block-2-west-of-corfu/
