The next day after Total’s departure

The next day after Total’s departure

By Harry Floudopoulos

Yesterday’s official announcement of Total, came to confirm the information that wanted the French company to have second thoughts in relation to the two concessions for hydrocarbon exploration in the south and west of Crete. The departure of the French company, however, did not just fall like lightning, as Total had made its intentions clear at all levels in time. In fact, according to information, already about two months ago, when a government official who had contacts with Total representatives visited France, it was said that the company now focuses on investments in RES and not on hydrocarbons. The content of Total’s announcement confirmed the truth of the statement as it stated, “Total Energies remains committed to its commitment to the development of renewable energy sources in Greece.”

This very information that had preceded, had already mobilized the Greek authorities which are looking for a possible replacement for the French company.

According to the provision of the concession agreement, the first two words after the departure of Total will have the other two shareholders of the consortium, ExxonMobil and Hellenic Petroleum. Until the departure of Total, the shape of the consortium was as follows: Total 40%, ExxonMobil 40% and ELPE 20%. The two remaining shareholders will be asked to respond if they want to increase their stake by taking a stake in Total. Only in case there is no positive response from the existing shareholders then the way will be opened for a new player or new players to enter the consortium.

Information that had come to light in the previous period wanted EDEY to have already started the processes in order to fire up potential interested suitors.

Regarding the two concessions in Crete, these are the most promising areas for the existence of large gas fields but at the same time the less mature ones where the immediate acquisition of seismic data is imperative. The goal is for this to happen in the winter season 2022 – 2023. The three-dimensional seismic will follow in 2024. According to the planning announced by EDEY, the decision for drilling or withdrawal is expected to be taken in 2025 – 2026 while the development of the deposit in 2027. production is set for 2029 as long as everything goes smoothly.

It is worth mentioning that the two sea plots in the south and west of Crete, extend to about 40 thousand square kilometers, which is the size of the Peloponnese. The research phase is divided into three stages: the geophysical studies and the acquisition of two-dimensional seismic data in the two blocks. The three-dimensional seismic data will follow, while finally the research drilling at a depth of 4 thousand meters will follow.

Regarding the investments required for the development of the potential deposit, according to recent estimates made by the South East European Energy Institute, for every 1 TCF of potential deposit, investments of 2 billion euros are required, which means that for example a possible 10TCF deposit in Crete will € 20 billion in investment is required.

In any case for the region south of Crete, IENE estimates that there are satisfactory indications that could attract large companies, as long as large concessions are made, over 20 thousand square kilometers, as happened with the concessions in the south and west of the island where they came. Total and ExxonMobil.

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Source: Capital