Greece to Sign 3 Oil, Gas Concession Deals

Greece said it would grant three concessions to explore and exploit oil and gas deposits next week, stepping up its quest to develop untapped energy potential.
 

The three blocks will be awarded to groups including Greece's biggest refiner Hellenic Petroleum and its sole oil producer Energean Oil & Gas, the energy ministry said on Thursday.
 

"We are proceeding rapidly to exploit our mineral wealth in the best way possible," Energy Minister Yannis Maniatis said in a statement.

Encouraged by big gas finds in nearby Cyprus and Israel, bailed-out Greece invited oil companies to explore the areas two years ago, at the height of its debt crisis.

Greece imports almost all its oil and natural gas and spent 15.6 billion euros ($21.5 billion) on fuel purchases last year, about 8.6 percent of its gross domestic product.

Two Energean-led groups will conduct test drills in two blocks, onshore at Ioannina and offshore Katakolo, which combined may hold about 55 million barrels of oil and 1 trillion cubic feet of natural gas, according to official estimates.
 

The other group, which includes Hellenic Petroleum, Italy's Edison and Ireland's Petroceltic, will try its luck offshore at the Gulf of Patras.
 

In addition to the concessions to be signed on May 14, Athens plans to invite international investors later this year to explore other offshore areas in the west and south, following the recent completion of seismic tests there.

Last month, Italy's Enel separately sought permission to explore another three onshore areas, also in the west.

Greece's sole oil operation is off the northern island of Thassos, where Energean produces about 2,000 barrels of crude a day. U.S. hedge fund Third Point holds a 44.5 percent stake in the company.

(Reporting by Harry Papachristou; Editing by Dale Hudson)