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

On Monday, a consortium led by U.S. oil giant Chevron signed exclusive lease agreements to search for natural gas in southern Greece. This agreement expands the United States presence in the Eastern Mediterranean. The deal will double the amount of Greek marine acreage that is available for exploration. It's also the second time in recent months that a U.S. oil major has been involved. This is because the European Union wants to reduce its dependence on Russian gas and the U.S. wants to replace it.

Exxon Mobil joined Energean in November to search for gas on another offshore block of Western Greece. Chevron, which plans to increase production in Israel, will now lead the search for natural gas in four deep sea blocks south of the Peloponnese Peninsula and Crete. The area covered by the agreement is 47,000 square kilometers. The agreement follows a previous international tender won by Helleniq Energy and Chevron, Greece's largest oil refiner.

GREECE WANTS TO BE A GATEWAY OF US GAS

Greece, a country with 'no gas production,' and which relies on gas imports to power its domestic and industrial needs, has renewed its search for gas exploration following a 2022 energy shock caused by Russia invading Ukraine. The country also wants to become a hub for U.S. LNG transported through the Vertical Gas Corridor route, which carries gas to central Europe and Ukraine. U.S. Ambassador to Greece Kimberly Guilfoyle stated that U.S. LNG flowing 'through Greece has strengthened the alliance between Europe and the United States.

Guilfoyle stated during the presentation of the contracts in Athens that "it redraws the energy map of Europe." The European Union is building renewable energy capacity to reduce greenhouse emissions. However, it has acknowledged that natural gas can be used as a fuel transition to stabilise the grid when intermittent wind or solar energy is not available.

The Greek Parliament will need to approve the lease agreements before the Chevron led consortium can begin seismic research in the latter part of this year. The consortium will have up to five years to find potential recoverable deposits and no test drilling is allowed before 2030-2032.

Exxon Mobil, Helleniq and other companies also have a license to search for hydrocarbons on two additional deep-sea block south of Crete. They are currently evaluating the seismic data in these blocks before proceeding with exploratory drilling. (Reporting and editing by Barbara Lewis; Additional reporting by Louisa Gouliamaki)

(source: Reuters)