The geopolitical significance of Chevron’s participation in hydrocarbon exploration and the next steps of the major tender

The world’s second-largest lipid company, Chevron, yesterday formalized its involvement successful hydrocarbon exploration successful Greece’s Exclusive Economic Zone (EEZ). With a 70% stake, it assumes the relation of relation successful the associated task being acceptable up with Helleniq Energy, which holds the remaining 30%.

Under the caller scheme, 4 offshore blocks volition beryllium granted for exploration and exploitation: Block A2 southbound of the Peloponnese and 3 further blocks southbound of Crete, covering a full country of astir 47,000 quadrate kilometers.

The Geopolitical Dimension

Chevron’s beingness successful the Greek tender goes beyond a large vigor institution choosing to put successful the country. It is interpreted arsenic a practical endorsement of Greece’s position connected the median enactment betwixt Greece and Libya nether the Maniatis Law, efficaciously nullifying the Turkey–Libya memorandum. At the aforesaid time, Athens upgrades its relation arsenic a cardinal energy hub successful the Eastern Mediterranean, an improvement acknowledged some by the European Union and the United States.

It is nary coincidence that the announcement coincided with the sojourn to Athens of U.S. Interior Secretary and caput of the White House Energy Sovereignty Council, Dan Burgum, who contiguous is holding meetings with Prime Minister Kyriakos Mitsotakis astatine Maximos Mansion, arsenic good arsenic with Greek companies importing earthy gas. Chevron confirmed successful its announcement yesterday its strategic beingness successful the Eastern Mediterranean, a portion it identifies arsenic a priority, and expressed readiness to enactment with the Greek authorities to implicit the bid valuation process.

The New Energy Reality

Prime Minister Kyriakos Mitsotakis stated that the information of American giants is impervious of the upgrading of Greece’s geopolitical position, stressing that the state is evolving into a significant vigor player successful the region.

The combined beingness of ExxonMobil and present Chevron, successful concern with Helleniq Energy, creates a continuous tract of exploration that could reshape the vigor representation of the Eastern Mediterranean.

Helleniq Energy’s Role

From the Greek side, Helleniq Energy’s expected beingness successful the caller circular of concessions is deemed strategic. Holding a 30% involvement successful the associated venture, the institution expands its home hydrocarbon footprint, aiming, arsenic it noted successful its announcement yesterday, to complement the areas successful which it is already progressive successful exploration and production.

The institution presently holds 25% successful the 2 Cretan blocks (West and Southwest) successful collaboration with ExxonMobil, and besides participates successful Ionian Block 2 unneurotic with Energean. In addition, it operates independently successful the Ionian Sea and successful Block 12 of the Kyparissia Gulf. With its caller participation, Helleniq Energy gains a strategic footprint crossed astir each cardinal fronts of exploration successful Greece’s EEZ, strengthening its relation successful the home representation of imaginable deposits.

The Evaluation Process and the Signing of Contracts

Yesterday’s improvement marks the first phase of the tender for the caller offshore blocks, which was initiated a twelvemonth agone by Chevron itself with a ceremonial petition to the Greek government.

The Hellenic Hydrocarbon and Energy Resources Management Company (EDEYEP) is expected contiguous to name the Tender Evaluation Committee, which volition unseal and analyse the bids implicit a play of astir 60 days. This volition beryllium followed by an further two-month dialog signifier to amended presumption and finalize the contracts. According to the plan, the concessions are expected to beryllium signed by year-end, aft which the contracts volition beryllium submitted to Parliament for ratification.