Energean Signs Large Greek Lease

Greek upstream independent Energean Oil & Gas said May 25 it has signed a lease agreement with the Greek government for the 4,360-km² Aitoloakarnania block onshore Greece – described as a geological continuation of the Ioaninna block, which Energean has explored since 2014. 

Spanish energy firm Repsol in March agreed to farm into a 60% interest in both onshore blocks in western Greece that together cover 8,547 km². 

Energean said May 25 that Repsol is planned to become operator of both, and that the two companies have already submitted an application to the Greek government to approve Repsol’s plans to farm in and undertake a 2D seismic survey over the Ioannina block in 2017/2018, and conduct 2D seismic survey over the Aitoloakarnania block in 2018/2019.

Energean CEO Mathios Rigas (left) signs the lease (Photo credit: Energean) 

The two blocks are considered by Energean to be the southernmost extension of the greater peri-Adriatic basin, with oil and gas production in Albania, Italy and Croatia; it said over 10bn barrels of oil and 30 trillion ft³ gas have been discovered throughout this region. Greek oil and gas production is minimal, and the country is heavily reliant on imports. 

“Energean is the only producer of oil and gas in Greece where we are developing the 41mn bbls of 2P reserves in Prinos," said Energean CEO Mathios Rigas, adding that it is developing Israel's Karish and Tanin deepwater gas fields: "We are building a promising exploration portfolio in Western Greece and the East Adriatic. We are investing a total of $1.5bn in the region with a vision to become the leading independent in the East Med."

Mark Smedley