Next Steps for Hydrocarbon Exploration: How Greece’s Economy Could Benefit

Speed is now the primary requirement to avoid bureaucratic delays of the past. As our country currently has tangible investment interest for hydrocarbon exploration from Chevron, the second-largest oil company after ExxonMobil, the focus shifts to the government and management company EDEYP. A ministerial decision will officially confirm this interest. Then, precise geographical boundaries of the sites will be determined, and the contract model with the oil companies will be selected based on previous concessions’ experience. The ministry aims to conduct a single tender instead of two for the new sites Chevron requests south of Crete and the A2 site in the Ionian Sea, where HELLENiQ Energy has also shown interest. Positive signals indicate that procedures will move swiftly, aiming to complete the tender by the end of this year. If the tender progresses smoothly, Chevron will decide on its next steps, potentially conducting additional seismic surveys to gain the best possible image of potential underground targets. These explorations may last around one year, followed by months for data processing and evaluation. The critical investment decision for exploratory drilling will then follow, revealing any extractable quantities. Only then can we discuss billions of euros or barrels of oil equivalent or cubic meters of gas. Any other estimate at this stage is premature. The exact timeline will be defined shortly, with the best-case scenario being the first drills within the next three years, though realistically, they might occur later in this decade. Regarding potential benefits for Greece’s economy and citizens, it should be noted that gains won’t manifest as lower natural gas prices domestically. Instead, the state will collect a specific percentage of sales as royalties, previously set above 20%. Likely, Greece will follow Norway’s model by establishing a fund to use these funds for public welfare and long-term goals like social security support or education. In summary, if the entire venture succeeds, it could provide a steady, long-term boost to the economy indirectly through public expenditure savings.