Positive developments in the field of hydrocarbons and strengthening the country’s energy independence were described by the Minister of Environment and Energy Stavros Papastavrou, speaking on the program “Connections” and ERTnews, emphasizing that Greece is now on the “radar” of major international energy companies.
As he noted, the recent development concerns an expression of interest by Chevron for yet another offshore block in Greece, with the acquisition of a significant stake in one of them and first development rights. “It shows that our country is of interest and that this region has potential for commercial exploitation,” he noted, emphasizing that the development of the sector requires high costs and expertise, with strict environmental standards.
First exploratory drilling in 2027 – Billions in investments
Mr. Papastavrou clarified that the first exploratory drilling is scheduled for February 2027, in the “Asopos,” northwest of Corfu. This specific project is at the most advanced stage of exploration, while “Block 10” is second.
The cost of an exploratory well is estimated at approximately 80 million euros, while in the event of a successful discovery and commercial exploitation, total investments could reach 3 to 4 billion euros.
In this scenario, public revenues for the country could rise to as much as 10 billion euros over time, derived from taxation and other revenue linked to production, with the percentage estimated at 38% to 40% of profits.
Energy independence and improved standard of living
The minister noted that a successful outcome would significantly strengthen the country’s energy independence, pointing out that estimates indicate reserves of 270 billion cubic meters of natural gas, while annual consumption amounts to approximately 6 billion.
At the same time, he emphasized that the potential revenues could help improve citizens’ standard of living, while they would boost overall investment interest in Greek offshore blocks.
Combination of hydrocarbons and renewable sources
Responding to questions about the relationship between hydrocarbons and green energy, Mr. Papastavrou emphasized that energy policy is based on a balanced mix. As he said, Greece must utilize all available sources—sun, wind, hydroelectric power, and potential reserves—to ensure energy independence.
He clarified that the development of hydrocarbons does not negate the goal of sustainable development and decarbonization, noting that natural gas remains necessary for the stability of the energy system.
Increase in RES and the need for energy storage
The Minister noted that energy production from renewable sources has already tripled since 2019, rising from 6.3 GW to 18 GW, while approximately 3 GW were added in the last year alone.
However, he acknowledged that the country lags behind in the field of energy storage, which leads to losses, particularly of energy generated during midday hours by the sun. As he said, until recently there were no grid-connected storage facilities, while now the first projects have begun, aiming to reach 700-800 MW by the end of the year and 1.2-1.4 GW by 2027.
Storage, as he emphasized, is critical both for utilizing surplus energy and for the stability of the power system.
Energy prices and international developments
Referring to energy prices, he noted that Greece is below the European average, despite the price hikes caused by the war in Ukraine and developments in the Middle East. As he explained, the high share of renewables in the energy mix limited the pass-through of price increases to consumers.
Greek-Turkish relations and energy policy in the Eastern Mediterranean
Mr. Papastavrou emphasized that Greece is exercising its sovereign rights, while stressing that the international community condemns the instrumentalization of energy.
As he noted, the Eastern Mediterranean is emerging as a major energy hub, with the participation of major companies in Greece, Cyprus, Israel, and Egypt, emphasizing that coercive practices are unacceptable in the new energy landscape.
Delay in the Greece – Cyprus and restart
Regarding the electricity interconnection between Greece and Cyprus, he acknowledged delays due to differing approaches on the Cypriot side, but emphasized that the project is being restarted, with the involvement of European institutions to update and promote it.
ADMIE: Strong investor interest in the networks
Finally, he referred to ADMIE’s share capital increase, highlighting the strong interest from international investment funds. As he said, the Greek government retains a 51% stake, while private participation reflects confidence in the Greek economy and in the role of the networks as critical infrastructure.
