Hopes for Greek Offshore Natural Gas Reserves
Greece's government awarded Norway-based Petroleum Geo-Services (PGS), during winter 2012-2013, a contract to conduct far-range offshore research for hydrocarbon reserves, based on previous indications for substantial amounts of oil and gas found mostly in the western and southern regions of the country.
Recently concluded research by PGS's vessel M/V Nordic Explorer, which cost around $40 million, bore preliminary optimistic results. The total number of seismic research in terms of seismic lines laid for exploration reached 12,500 km of sea surface and was conducted throughout a period of four months, covering a sea region of around 200,000 km2. The Greek Ministry of Energy, stated around "Positive results to be expected," whilst PGS relayed that all went according to plan and a series of analyses will be conducted until September 2012 in PGS's offices in Houston and London in order to make exact estimations.
Originally the Nordic Explorer was to lay in the sea surface around 8,000 km of seismic research lines, but certain indicators and interest from energy companies increased that number by 50 percent. Moreover, Greek media discussed, based on information by governmental officials, interest from Total SA, ExxonMobil, in addition to preliminary interest from Shell.
A more intriguing approach is made by Greek geologists, particularily from Professor Antonis Foskolos, who in the past cooperated with the Geological Survey of Canada and Dr. Elias Konofagos, a hydrocarbons expert and the Greek Prime Minister's energy advisor. They concluded via thorough investigation, based on idicators from the U.S. Geological Survey (USGS) and French Beicip, that the sea region south and east of the Island of Crete could potentially have up to 120 trillion cubic feet of natural gas, half of which is located in Greece's exclusive economic zone.
It should be noted that in the summer of 2011, J. Robinson of PGS at a conference in Athens discussed a region of great potential, which is geologically connected with the Levantine basin in Cyprus and Israel, where large discoveries have been made. Greek scientists go one step further and point out that the gas reserves could also be found in the southern part of the Island of Zakynthos in western Greece and by forming an arch they spread up to the Latakia port of Syria.
Konofagos recently stated that his research findings were used in a Deutche Bank investors report, which noted the chance of finding the specified gas amounts stands at 50 percent and that PGS has found that Greece's probable reserves are in very deep water, which calls for considerable investments and use of technology. Reuters recently reported that Greece's potential natural gas reserves may be worth up to $600 billion with today’s prices and also added that total gas volumes in the eastern Mediterranean sea are estimated at over 10 trillion cubic meters, according to USGS estimates, which is enough to meet Europe's gas demand for more than 15 years (area excludes south of Crete).
Overall, there is indeed indication that something is beneath the surface as far as natural gas reserves in the wider eastern Mediterranean region. Nevertheless it will take some time before more definite data is available, so as to be able to calculate the amounts involved and associated costs.