Greece Opens Adriatic Coast For Oil, Gas Exploration

Greece will start licensing for natural gas and oil exploration in areas along its western coast at the end of September, a Greek energy ministry representative has said.



Greece will open up 20 offshore and three onshore blocks ranging from 1,800 to 9,500 square kilometers in western Greece and the south of Crete, after a call for tenders is published in the EU Gazette at the end of this month, according to a representative of the Greek Ministry of Environment, Energy and Climate Change.



He told Anadolu Agency:  "We expect €150 billion of investment over the next 30 years.



"But those are very rough estimates until the companies come up with firm programs."



Currently, Greece's production of crude oil is 1,250 barrels per day and that of natural gas is 5 million cubic meters, which is not sufficient to meet even one percent of its total demand, according to the U.S. Energy Information Administration. 



Highly dependent



Greece is hoping to unlock the potential of domestic hydrocarbon reserves via private sector investment as it is highly dependent on Russia for its oil and gas supply.



Other countries exporting hydrocarbons to Greece include Qatar, Saudi Arabia and Algeria. 



The deal will open up an area measuring 101,000 square kilometers.



Companies will have six months to submit their offers after the call for tenders is published.



After the assessment and negotiation period is over, exploration activities are expected to start in September, 2015.



Applications from companies will be considered according to their legal statues and financial and technical capability he said, adding they must apply with a bank guarantee and applications from "tax-haven" countries will not be accepted.



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