The clock is ticking for the Chevron-Helleniq Energy consortium as it evaluates the data collected in “Block 10” in the Gulf of Kyparissia, likely taking into account data from new adjacent concessions ("A2"), with all that this may imply for the first drilling in the southwestern Peloponnese.
The ball is now in the consortium’s court, as the state apparatus, although it has not accustomed us to such speed, nevertheless completed all the necessary steps in less than a month—since May 28, when Chevron submitted its request to enter “Block 10.”
That is, both the 15-month extension requested by the other partner (Helleniq Energy), as well as the transfer of the operator role to the American company, and the so-called FDI Screening by the Ministry of Foreign Affairs—that is, the green light that every major foreign investment must receive for national security reasons before proceeding.
In this case, all that remains is the formal transfer (farm-in) of Helleniq Energy’s 70% stake to Chevron, which is expected in the coming days, so that the 15-month period can begin immediately thereafter, that is, until September 2027.
At that point, the consortium—having likely first evaluated the data from “Block 10” alongside that of the neighboring “A2” in the southwestern Peloponnese— —the vessel will logically begin seismic surveys within the year—it will be called upon to make its decision as to whether or not to proceed with drilling (drill or drop).
If the answer is yes, then sometime in 2028 we will see a drilling rig in the southwestern Peloponnese, following the ExxonMobil-Energean-Helleniq Energy consortium’s move into “Block 2” in February 2027.
Yesterday’s broad-based meeting at the Ministry of Environment and Energy, chaired by Stavros Papastavrou and attended by U.S. Ambassador Kimberly Guilfoyle, the head of the Hellenic Petroleum Exploration and Production Company (HEPEPC) Aris Stefatos, Chevron’s Director of Research for the Middle East and North Africa, Andrew Deighan, and Helleniq Energy CEO Andreas Siamis, aimed to formalize the completion of these pending matters on the part of the state.
“The Greek government completed the regulatory process in record time; now we are waiting to see how quickly the companies will move,” said a person familiar with the proceedings.
The operational side
On the operational side, the research programs for Phases 1 and 2 of the Basic Research Stage in “Block 10” have been completed, with seismic surveys covering nearly the entire concession area. In addition to the 1,210 square kilometers of 2D seismic data collected in 2022, 2,416 square kilometers of 3D seismic data have been added, now covering 88% of the concession.
Regarding the key question of why Chevron is purchasing Helleniq Energy’s 70% stake in “Block 10” of the Kyparissia Gulf— a deal the two sides have been negotiating for some time, the answer was provided yesterday by the American company’s own executive, Andrew Deighan, who spoke of “an interesting, exploratory area,” which is part of the group’s ongoing efforts to build momentum in the Mediterranean region.
Essentially, with this move, Chevron statistically increases the chances of identifying exploitable targets in the area south of the Peloponnese. Combining the 2,376 sq. km of “Block 10” with the two other blocks where it is already the operator—“A2” (826 sq. km) and “Southern Peloponnese” (10,211 sq. km.), a unified exploration area is created, offering it great flexibility in selecting drilling sites.
Scenarios for an oil structure in “Block 10”
It should be noted that Chevron’s move to enter “Block 10” may also be linked to its geological structure.
The plot is adjacent to the offshore field at Katakolo, Elis, which is estimated to have potential reserves of 14 million barrels of oil at a shallow depth of 300 meters, but all indications suggest it will not be developed. The area has now been included, effective 2025, in the strict protection zone of the new Ionian National Marine Park, with all that this entails.
“The proven hydrocarbon system in the neighboring licensed area of Western Katakolo, combined with the large number of surface natural oil and gas seeps in the wider region, make “Block 10” a particularly interesting area.
Furthermore, several oil and natural gas fields have been discovered in Albania, which belong to the same fold and thrust zone and share the same geological characteristics,” according to the website of the Hellenic Hydrocarbon and Energy Resources Management Company (EDEYEP).
When asked, therefore, whether the new block Chevron is entering might also contain an oil structure, experts do not rule it out at all. “It depends on the stratigraphic level and the target. The chances of finding natural gas increase as we move south,” they note, referring specifically to the southern Peloponnese and, of course, Crete.
Transactions in the secondary market
According to hydrocarbon market sources, Chevron’s move to enter “Block 10,” as well as ExxonMobil’s move to enter “Block 2” in the northwestern Ionian Sea, indicate that activity is beginning to pick up in the so-called secondary market—that is, in existing blocks, as well as those that have at times been returned to the state.
This category includes, for example, the “West of Crete” offshore block, which was recently returned to the State by the ExxonMobil - Helleniq Energy consortium, and all indications are that it is being considered for inclusion in a new open-door round, as EDEYEP CEO Aris Stefatos recently stated.
“We have already proposed (to the Ministry of Environment and Energy) the launch of a new international tender for the acquisition of seismic data, and we are also evaluating the launch of an open-door process for areas that will be available on a permanent basis.
In this context, we will also evaluate the possibility of contributing to solutions that reduce investment risk and make the plots more attractive. I hope that we will be in a position to make specific announcements relatively soon,” he noted.