(Oil Price)– ExxonMobil is expanding its exploration portfolio offshore Greece with a new farm-in agreement for a block in the northwestern Ionian Sea.
ExxonMobil, Energean, and Helleniq Energy have reached a farm-in agreement under which the U.S. supermajor will buy 60% in the Block 2 concession in the northwestern Ionian Sea, next to the Italian Exclusive Economic Zone (EEZ), Energean said on Thursday.
With Exxon farming-in in the block, Energean’s stake drops to 30%, down from 75%, and Helleniq Energy’s interest in the block falls to 10% from 25%.
Energean will remain the operator of the concession during the exploration stage, but if the partners make a hydrocarbon discovery, ExxonMobil will assume operatorship during the development stage.
Block 2 is the most mature concession in Greece in terms of readiness for exploratory drilling, Energean said.
Exploratory drilling is expected to begin in late 2026 or early 2027, provided that all necessary approvals and permits are obtained, and that the exploration phase is extended to ensure sufficient time for project completion within the planned schedule.
“This significant exploration agreement paves the way for potential future exploratory drilling investments in the 2027 timeframe,” said John Ardill, Vice President of Global Exploration at ExxonMobil.
Collaboration with ExxonMobil in Block 2 is “a national opportunity to prove that Greece can achieve energy independence, utilizing domestic energy resources responsibly and in line with the strictest international standards,” Energean CEO Mathios Riga commented.
Exxon and the other U.S. supermajor, Chevron, have snapped up exploration blocks offshore Greece in recent months, as the companies and Greece hope the offshore area could hold giant natural gas resources, similar to the ones discovered in the Eastern Mediterranean offshore Egypt and Israel.
Greece last month announced it is awarding four offshore oil and gas exploration blocks south of the Peloponnese peninsula and south of the island of Crete to a Chevron-led consortium.
By Tsvetana Paraskova for Oilprice.com
