US energy giant Chevron and Greek energy group HELLENiQ Energy have jointly submitted a formal bid for the exploration and exploitation of Greek hydrocarbons in four offshore blocks spanning a total of almost 47,0000 square km (or almost 18,147 square miles). They are:

-“South of Peloponnese,” spanning an area of 11,000 square km (about 4,247 square miles)
-“A2,” spanning an area of 826 square km (about 319 square miles)
-“South of Crete I” and “South of Crete II,” spanning an area of 35,000 square km (about 13,514 square miles)

Hydrocarbon Exploration Areas (yellow dashed and solid lines) / Image Credit: HEREMA

Following the formal bid submission, Greek Environment and Energy Minister, Stavros Papastavrou, issued a statement hailing the development as “a new chapter for the exploitation of the underwater energy wealth of our homeland” and characterised it as an “evolution of hope and perspective” for Greece.

Papastavrou also emphasised that Greece is establishing “solid foundations” for its energy self-sufficiency and effectively leveraging its geopolitical position in the Eastern Mediterranean.

The “South Crete II” block holds particular significance as a portion of it overlaps with the area outlined in the Turkey-Libya memorandum. Thus, Chevron’s presence in the region is seen by Athens as a diplomatic deterrent against challenges to Greek sovereign rights and against claims stemming from Turkey’s memorandum with Libya.

The next stage in the process will involve the bid’s evaluation by the Hellenic Hydrocarbons and Energy Resources Management Company (HEREMA) which make take up to 60 days. The final agreement will need to be ratified by the Greek Parliament while, after ratification, seismic surveys will commence to identify promising drilling targets.