Chevron Signs Deals for E&P Acreage off Greece

On Monday, Chevron signed a large-scale deal for the rights to four E&P blocks off the coast of Greece, expanding the company's Mediterranean portfolio and Greece's prospects for energy independence.

The newly-awarded lease areas are in the southern Greek EEZ and cover a combined area of about 18,000 square miles, consisting of two south of the Pelopponese and two blocks south of Crete. The latter two areas are said to be the most promising candidates for gas exploration. Chevron holds a 70 percent operating interest alongside local partner Helleniq. The deal still has to be finalized by Greece's parliament; if approved, Chevron will have five years to conduct seismic work and find candidate fields for test wells. The timetable puts the prospect of spinning bits out into the early 2030s.

In addition to Chevron's deal, ExxonMobil holds E&P license for seabed in the Ionian Sea and others near Crete. Initial drilling for Exxon's first project in the Ionian Sea is set to begin next year, and is being watched closely for indications of the overall region's potential.

Any successful test well would be the first offshore development in Greece in more than 40 years. New gas production would help reduce the country's heavy dependence on foreign sources, notably imported American LNG.