Agreements were signed between Greece and a U.S.-based oil company for hydrocarbon exploration and production off the coasts of the Peloponnese and Crete. If the activities prove successful, the natural gas produced is expected to be supplied to Europe.
Greece has signed leasing agreements for hydrocarbon exploration and extraction in four offshore areas off the Peloponnese Peninsula and Crete through a joint venture between Chevron and Helleniq Energy.
According to Greek media reports, Greek Prime Minister Kyriakos Mitsotakis stated that if exploration efforts are successful, the natural gas produced in Greece will be supplied to Europe via the route known as the “Vertical Corridor.”
In his statement, Mitsotakis noted that it is not yet known whether hydrocarbons exist in the designated areas and said:
“Exploration efforts are full of uncertainties, we all know that. We cannot know for certain what is there without examining it. But we believe in these efforts.”
Seismic surveys, for which Chevron has reportedly chartered a vessel covering an area of 47,000 square kilometers, are planned to begin later this year.
In November 2019, the governments of Turkey and Libya signed a memorandum of understanding on the delimitation of maritime zones between the two countries, including areas south of Crete. Greek authorities do not recognize this memorandum, arguing that it falls within the country’s exclusive economic zone.
Libya’s Ministry of Foreign Affairs has expressed dissatisfaction with Greece’s intention to conduct hydrocarbon exploration activities south and southwest of Crete, accusing Athens of “exploiting the Libyan crisis” and attempting to impose maritime boundaries between the two states by signing hydrocarbon exploration contracts in disputed areas.