Natural Gas Prospects in the Balkans
A recent international energy workshop in Athens, Greece provided several pointers for the up and coming upstream gas sector in several Balkan countries.
The region is unexplored in most respects and workshop participants were assured of promising findings that could literally transform Europe's gas sector in the mid and long term.
IENE’s 2nd SE Europe Regional Upstream Workshop on “Hydrocarbon Exploration and Production in the Adriatic, the Black Sea and the East Mediterranean” featured a number of prominent experts and industry figures, who gave their assessments on the subject.
Greek Energy Minister Ioannis Maniatis relayed information that the initial analysis by Norway’s PGS, the company conducting offshore seismic surveys in Greece, provideed "promising" findings and it is only a matter of a few months before the first licensing rounds are being awarded. Maniatis also added that the East Med pipeline between Israel, Cyprus and Greece is being seriously considered by these three countries since it is a key future asset for the diversification of EU gas supplies.
Kostis Stambolis, General Director of IENE, referred to the impeding Russian-Ukrainian gas crisis that could possibly erupt and emphatically noted that the EU in particular should pay close attention to the upstream gas sectors in the Adriatic, Balkans, Mediterranean and Black Sea regions.
Dr. Hans Hutta, General Director of the International Center for Petroleum & Industrial Management, ICM, spoke about the "great prospects" of the Black Sea in terms of significant assumed hydrocarbon reserves, giving extra credit offshore Romania and Bulgaria, where companies such as Exxon, Repsol, Total and OMV are already in the exploration process.
The Black Sea has several difficulties that have in the past prevented thorough research and exploration. Nevertheless, technology in deep drilling is progressing and in the mid-term there should be discoveries of importance.
Petroceltic’s country manager for Italy and Mediterranean, Peter Shinner, revealed his optimism for Italian as well as Greek reserves and exploitation, where his company is actively pursuing along with ELPE and Edison, offshore Greece in the Gulf of Patras. The region is unexplored and he said that his company is specifically targeting such areas in order to maximize future gains.
Ilia Gjermani, a specialist from Albania’s Ministry of Economy, Trade & Energy, noted in detail Albania’s potential for natural gas production and explained that his country progressively has attracted a number of investments. The country’s legal and regulatory framework was re-arranged recently to attract a greater number of investors. In the central and southern regions as well as at offshore locations near the borders with Greece and Italy, significant reserves are expected and in a few years exploration licenses will hopefully be awarded. Presently the Delvina gas reserve in the country is the largest proven onshore reserve in the Balkans.
Geologist and New Business Development Manager at Energean Oil & Gas, Hank David, believes strongly that Greece and the nearby region is unexplored but promising area for the amounts of hydrocarbons that could satisfy local needs and pave way for exports in other EU markets.
The Adriatic Basin in particular is of great importance, which includes Italy, Croatia, Montenegro and Albania, and continues south to the Ionian sea of Greece. Reserves of importance are expected and Energean recently teamed up with Ocean Rig, a leading global drilling company, to search for opportunities across the Mediterranean.
Eitan Aizenberg, Exploration Manager at Ratio Oil Exploration described the challenges exploring the Leviathan reserves and explained there are more locations to be found in the future in the wider Eastern Mediterranean region.
Production at the aforementioned reserves should come upstream to the Israeli market by early 2016. The three main options for exports being examined presently in Tel Aviv are: East Med pipeline, LNG terminal in Cyprus and a pipeline in Turkey, with no definite decision taken as of yet.