ATHENS, Feb 16 (Reuters) – A consortium led by U.S. oil company Chevron has signed exclusive lease agreements to search for natural gas off the southern coast of Greece. This move increases the U.S. presence in the eastern Mediterranean.
The deal doubles the maritime area in Greece that can be explored and is the second agreement in just a few months involving a U.S. energy company. This comes as the European Union aims to reduce its reliance on Russian supplies, and the U.S. looks to fill that gap.
Back in November, Exxon Mobil teamed up with Energean and Helleniq to explore another offshore block in Western Greece.
The latest agreement lets Chevron, which also plans to expand its production in Israel, lead the search for gas in four deep-sea blocks located south of the Peloponnese peninsula and Crete, covering an area of 47,000 square kilometers (about 18,147 square miles).
This follows Chevron and Helleniq Energy, Greece's largest oil refiner, winning an international tender last year.
Greece, which currently has no gas production and relies on imports for energy and consumption, is renewing its focus on gas exploration following an energy price shock in 2022 due to Russia's invasion of Ukraine.
Greece also wants to become a gateway for U.S. liquefied natural gas (LNG) that can be transported via the Vertical Gas Corridor, a route transporting gas from Greece to central Europe and Ukraine.
U.S. Ambassador to Greece Kimberly Guilfoyle stated that U.S. LNG moving through Greece has strengthened ties between the United States and Europe.
“It simply changes the energy map of Europe, providing a long-term alternative to Russian gas, not just for this season but for generations,” Guilfoyle said during the contract announcement in Athens.
The European Union is working on increasing its renewable energy capacity to reduce greenhouse gas emissions, but acknowledges the ongoing need for natural gas as a transitional fuel to help maintain grid stability when renewable sources like wind and solar are less reliable.
Before the Chevron-led consortium can begin seismic research later this year, the Greek parliament needs to approve the lease contracts. Greece has indicated that the consortium has up to five years to find potential gas deposits, with any test drilling not expected to start before 2030-2032.
Exxon Mobil and Helleniq also hold licenses to explore for hydrocarbons in two other deep-sea blocks south of Crete and are currently examining seismic data before proceeding with exploratory drilling.