News & Highlights

GREECE, Saturday, October 8, 2011

Green Light for Hydrocarbon Exploration

Greece’s Inner Cabinet gave the "green light" for hydrocarbon (oil) exploration and drilling in three regions of Greece.

The Cabinet gave the go-ahead for oil exploration in an area in the Gulf of Patras, west of Ioannina in Epirus prefecture, and in the region of Katakolo in Ileia prefecture, with an estimated potential of 250-300 million barrels over a period of 15-20 years.

"This is the first time that Greece is doing this, and everything will be conducted with full transparency," said Environment, Energy and Climate Change Deputy Minister Yannis Maniatis.

The entire process is slated for completion in a year's time, with the announcement of the winner of the tender, while in 18 months activities are set to commence with the installation of the required drilling equipment.

According to available information, oil deposits in the Patras Gulf are estimated at 200 million barrels, in the Ioannina region at 80 million barrels and in Katakolo at 3 million barrels. Calculated with the international forecasts for oil prices, which are expected to reach 150 dollars a barrel in the next few years, the estimated value of the three deposits is approximately 25 billion Euros over a 15-year-period, of which 13-14 billion euros are anticipated to enter the state coffers.

At the same time, procedures are being completed for the commencement of seismic studies for possible hydrocarbon deposits in the entire region of the Ionian and southern Crete, given that early indications have been "encouraging". (Source: ANA)