Chevron and a consortium of companies sign contracts for gas exploration offshore Greece

The United States has expanded its presence in the Eastern Mediterranean with the signing of exclusive lease agreements by a?consortium headed by U.S. major oil company?Chevron? to search for natural gas offshore southern Greece. This deal, the second to be signed in recent months by a 'U.S. company, doubles the amount available of Greek marine acreage for exploration. The European Union is phasing out Russian supplies and the United States is looking to replace them. The European Union is looking to replace them.

Exxon Mobil joined Energean, Helleniq and others in November to search for natural gas in another offshore block off Western Greece. The agreement signed on Monday allows Chevron, as the leader in the search for natural gas, to be the one leading the search south of the Peloponnese Peninsula and Crete. It covers a total area of 47,000 square kilometers, or 18,147 square miles. The agreement follows a successful international tender won by Hellenic Energy and Chevron, Greece's largest oil refiner.

After a shock in energy prices caused by Russia's invasion of Ukraine, Greece has re-opened its search for gas. The European Union has committed to increasing renewable energy capacity in order to reduce greenhouse gas emissions. However, it also acknowledged that natural gas is needed as a "transition fuel" to stabilise grids when intermittent wind and solar energy are not available.

The Greek parliament must approve lease contracts before Chevron's consortium can begin seismic research this year. The Greek government has stated that the consortium has five years to find potential recoverable deposits, and no test drilling will take place before 2030-2032.

Exxon Mobil & Helleniq also hold a license to 'look for hydrocarbons' in two other deep-sea block south of Crete. They are currently evaluating seismic data prior to moving forward with exploratory drilling. (Reporting and editing by Barbara Lewis; Additional reporting by Louisa Gouliamaki)

(source: Reuters)