Hydrocarbons: ExxonMobil Enters Block 2 – A Historic Step for Greece

A Historic Agreement

ExxonMobil has acquired 60% of the joint venture with Helleniq Energy and Energean, which holds Block 2 in the Ionian Sea, during the 6th Transatlantic Energy Cooperation Summit (P-TEC) at Zappeio.

“This agreement opens the way for the first exploratory drilling in Greece in over 40 years,” noted Prime Minister Kyriakos Mitsotakis, following his meeting with the senior U.S. delegation attending the summit.

The Minister of Environment and Energy described the deal as historic, while Matthios Rigas, CEO of Energean Group, emphasized:

“It creates the prospect for Greece to achieve energy self-sufficiency. It paves the way for the first exploratory drilling in decades.”

John Ardill, Vice President of ExxonMobil, added:

“We identify natural gas and oil and build the infrastructure for its production. We are expanding our exploration program in Greece. The U.S. is the world’s largest hydrocarbon producer, creating conditions for low costs and development of new sectors like Artificial Intelligence.”

Andreas Siamisis, CEO of Helleniq Energy, confirmed that Block 2 is the most mature for hydrocarbon production:“Conducting exploratory drilling is a major step for Greece.”

Ownership Structure and Roles

After the agreement, the Block 2 shares are:

• ExxonMobil 60%
• Energean Hellas 30%
• Helleniq Upstream 10%

Energean remains the operator during the exploration phase. In case of a discovery, ExxonMobil will manage the development of the field.

“The government implements consistently its commitment to exploit the country’s offshore resources and develop the hydrocarbon sector with a long-term vision,” stated sources from the Ministry of Environment and Energy.

First Drilling After 40 Years

The exploratory well Asopos-1 will target a potential carbonate reservoir at 4,000 meters depth, with an estimated 200 billion cubic meters (bcm) of natural gas.

The last exploratory drilling in Greece was in 1986 with the Nireas-1 and Olympia-1 wells in the Thermaikos Gulf.

Block 2, covering 2,422.1 sq km, is located 30 km west of Corfu, with water depths from 500 to 1,500 meters, within the Pre-Apulian geological zone.

“This drilling will test a potential carbonate reservoir in one of the largest mapped structures in the Mediterranean that has never been drilled,” said the Ministry.

The initial estimated resources (Gas Initially In Place) are approximately 200 bcm.

Seismic Survey and Preparation

In 2022, a 3D seismic survey was conducted by the vessel Ramform Hyperion, fully mapping the block. The survey followed strict environmental measures, monitored and verified by EDEYEP.“The consortium exceeded the initially agreed minimum financial obligations for exploration in the block, yielding significant results,” highlighted official sources.

Greece on the Path to Energy Independence

ExxonMobil’s entry signals the revival of Greece’s hydrocarbon exploration and offers the potential for the country to achieve energy self-sufficiency and economic growth by leveraging its offshore resources.

The exploration plan is scheduled for 2027, pending completion of necessary licensing processes, marking the first offshore well in four decades.

“Greece receives another vote of confidence from the international energy community,” noted the Ministry, emphasizing the strategic importance of Block 2 for the country’s energy and economic future.