ExxonMobil, HelleniQ Upstream and Energean Hellas signed on Thursday morning an agreement accompanied by the intention for exploration and offshore drilling at Block 2 in the north-western Ionian – a partnership that is characterized as a “vote of confidence” in Greece.

The exploratory well Asopos-1 will examine a possible carbonate reservoir at a depth of 4,000 meters and concerns a potential deposit of about 200 billion cubic metres (bcm) of natural gas.

The objective is to confirm a new geological play – one of the largest mapped structures in the Mediterranean region which has not yet been drilled.

Block 2 is the most mature concession for carrying out an exploratory drilling after the processing of 3D seismic data in 2022, in order to verify the existence of an exploitable hydrocarbons deposit with a success probability of around 15–18% (High Risk – High Return).

The area where the first drilling after 40 years in Greece will take place, is located in the Ionian Sea, 30 km west of Corfu, and covers 2,422.1 sq. km. To the west it extends to the maritime border of the EEZ between Greece and Italy. Water depths range from 500 m to 1,500 m and the area belongs to the Pre-Apulian geological zone.

Formally, the commitment to carry out exploratory drilling must be taken by March 2026 in order to officially submit the request to move to the next (second) exploration period to HEREMA. Its execution, provided the necessary permitting process proceeds smoothly, is possible within the next two years.

The agreement provides for ExxonMobil to acquire 60% of the concession. Based on the agreement the consortium shares are:

• ExxonMobil 60%
• Energean Hellas 30%
• HelleniQ Upstream West Corfu 10%

Energean remains Operator during the exploration period, while in case of a hydrocarbons discovery, ExxonMobil will assume Operatorship for development.

The beginning was in 2018

Block 2 was initially awarded in March 2018 to the consortium of Total 50%, Edison 25% and Hellenic Petroleum (ELPE) 25%. In February 2021 Energean Hellas acquired the 50% stake held by Total and simultaneously became Operator for this concession.

Through the acquisition of Edison’s exploration and production segment, Energean took on the additional 25%, so its total share in the concession rose to 75%. The 25% stake belonged to HelleniQ Upstream West Corfu (formerly Hellenic Petroleum Group).

Although the initial exploration programme did not include 3D seismic, after a scientifically documented proposal and recommendation by HEREMA, Energean agreed to upgrade the originally planned 2D seismic programme to a 3D seismic programme.

The assumption of operatorship of this block by Energean Hellas was completed in February 2021 following HEREMA’s recommendation and approval by the Ministry of Environment and Energy, acquiring the 50% stake held by Total in Block 2 in the NW Ionian.

This process was completed at record speed, in December 2021, following immediate actions by HEREMA and the Ministry of Environment and Energy.

In 2022, the 3D seismic survey was performed with complete success by the survey vessel Ramform Hyperion (flagship of PGS, now TGS) which essentially mapped the entire block. The surveys were carried out applying the strictest environmental protection measures, which HEREMA monitored and verified in the field with its own specialized observers. It is also worth noting that with this survey the consortium significantly exceeded the initially agreed minimum financial commitment for exploration in the block – a decision which today delivers significant results.

Historic agreement

“When there is abundant energy, people prosper. If you are in this room, you are part of the solution,” said U.S. Interior Secretary Doug Burgum.

“The future is extremely bright. That begins with good leadership, the Prime Minister of Greece is doing an amazing job, his ministers have become our friends,” Burgum said, adding that the U.S. will help with the Vertical Corridor.

“We have common values for everything we spoke about today. We talked about peace and prosperity. All these are at the top of President Donald Trump’s agenda. When we have the ability to sell energy to our friends and allies, we will do it,” he stressed.

The U.S. Ambassador to Greece Kimberly Guilfoyle described the signing of the agreement as “historic” in her brief remarks at the Summit. Congratulating those who participated in the agreement, she said it is an example of what can be achieved when we cooperate and when there is a bilateral relationship that advances regional stability.

“I am here to tell you that America is back. And now, with the extractions in the Ionian, we show what we can do when America and Greece work together. This is not only about America’s energy sovereignty, but energy sovereignty together with the great Greek Republic,” she emphasized.

Guilfoyle thanked U.S. Energy and Interior Secretaries Chris Wright and Doug Burgum respectively, as well as Greek Minister of Environment and Energy Stavros Papastavrou, and everyone who sat at the table for the signing. “They are visionaries, they will create an impressive energy future that will stabilize the entire region,” she said, adding that it is essential, as it responds to other Russian and Chinese interests – which is absolutely critical for national security.

“You are all witnesses to this historic moment, we share it and embrace it,” she said. Guilfoyle even announced other impressive actions: “We are just getting started. Wait and see,” she concluded.

For his part, Finance Minister Kyriakos Pierrakakis underlined that the Greek-American relationship has acquired an “existential dimension” for the Greek economy, since “15 years ago the attraction of American capital was difficult — today the interest is strong and mutual.” “Greece is back,” he said.