Total, Edison sign lease for oil and gas exploration off Greece
A consortium led by France’s Total moved a step closer to exploring for oil and gas off Greece after signing a lease on Tuesday with the government for a block in the Ionian Sea.
Greece wants to tap into its limited oil reserves to reduce dependence on oil imports and boost public finances, Reuters reports.
It awarded the contract to the Total consortium, which also includes Greece’s biggest oil refiner Hellenic Petroleum and Italy’s Edison, in October 2016.
“Undoubtedly it is a vote of confidence in the Greek economy,” Energy Minister George Stathakis said of the agreement on Tuesday.
Total will operate the block with a 50 percent stake, while Edison and Hellenic Petroleum will each hold 25 percent. The agreement must be ratified by Greece’s parliament before exploration work can begin.
Western Greece is a frontier, underexplored area and very little data exists on its hydrocarbon potential.
Bernard Clement, a senior Total executive for the Caspian and Southern Europe, said it would maintain “realistic expectations” before obtaining data.
Total has shown interest in the eastern Mediterranean following major gas discoveries off Israel and Egypt. It is currently drilling for oil off Cyprus.
Together with Hellenic Petroleum in a consortium led by U.S. oil major Exxon Mobil, Total has also expressed interest in exploration at two sites off Crete, prompting Greece to launch a tender.
