The companies ExxonMobil, Energean, and HELLENiQ ENERGY Upstream have announced the Farm-In Agreement for ExxonMobil’s participation in the Block 2 concession, located in the northwestern Ionian Sea, adjacent to the Italian Exclusive Economic Zone (EEZ).
According to the agreement:
- ExxonMobil acquires 60% of the concession.
- Energean’s participation is set at 30%, down from 75%.
- HELLENiQ ENERGY’s participation is set at 10%, down from 25%.
- Energean will remain the Operator of the concession during the exploration stage.
- In the event of a hydrocarbon discovery, ExxonMobil will assume operatorship during the development stage.
Block 2 is the most mature concession in Greece in terms of readiness for exploratory drilling. The relevant decision to proceed with drilling will be made by the consortium in the near future.
Completion of the transaction remains subject to applicable governmental approvals and the satisfaction of customary closing deliverables.
The exploratory drilling is expected to take place in late 2026 or early 2027, provided that all necessary approvals and permits are obtained in a timely manner from the competent authorities, and that the exploration phase is extended to ensure sufficient time for project completion within the planned schedule.
This drilling operation will be the first exploratory offshore drilling in Greece since 1981, when the well that led to the discovery of the Katakolo hydrocarbon field was completed. Over the past two decades, the only offshore wells carried out in Greece have been production wells in Prinos, implemented by Energean.
Statements
Dr. John Ardill, Vice President of Global Exploration, ExxonMobil, stated: 'We look forward to working with the Greek government and our partners to evaluate the exploration potential of Block 2 in a safe, effective and environmentally responsible manner.
This significant exploration agreement paves the way for potential future exploratory drilling investments in the 2027 timeframe.'
Mathios Rigas, CEO of Energean Plc, stated:
'This agreement represents an important step toward harnessing Greece’s natural resources and strengthening our country’s role on Europe’s energy map. Collaboration with ExxonMobil in Block 2 is not just a new business venture; it is a national opportunity to prove that Greece can achieve energy independence, utilizing domestic energy resources responsibly and in line with the strictest international standards. Energean is proud to lead this effort, continuing a path that combines scientific expertise, environmental responsibility, and confidence in our nation’s potential. As I have often emphasized, only by drilling will we know whether natural gas truly exists in our country. The success of this initiative could become a turning point for Greece’s energy security and for the future of the next generations.'
Andreas Shiamishis, CEO of HELLENiQ ENERGY, stated:
'Over the recent years, the Group has gradually acquired, and is developing, a highly promising portfolio of exploration blocks. Amongst them, Block 2 has reached the exploration well phase and the partnership with ExxonMobil will help advance the asset’s development further and faster. Greece is emerging as one of Europe’s newest and promising regions for hydrocarbon exploration and development. This transaction represents a positive step not only for the joint venture partners, but also for the Greek economy.'
About Block 2
Block 2 is located in the northwestern Ionian Sea, an area of significant geological interest adjacent to the Italian EEZ. In 2022, 2,244 square kilometers of 3D seismic data were acquired. Their processing and interpretation confirmed that the 'Asopos' structure is the most mature target for exploratory drilling. It is the largest unexplored offshore structure in the Mediterranean, with potential prospects to substantially enhance the energy security of Greece and the broader region.
Source: Energean
