US-based oil major ExxonMobil has signed a farm-in agreement with Energean and Helleniq Energy to acquire a 60% interest in Greece’s Block 2 concession. 

Under the terms of the agreement, Energean will retain a 30% stake, down from 75%, while Helleniq Energy will hold 10%, down from 25%. 

Energean will remain as the operator during the exploration phase. ExxonMobil will act as the operator in the development stage if the consortium discovers hydrocarbons. 

The Block 2 concession, located adjacent to the Italian Exclusive Economic Zone, is currently the most advanced in Greece in terms of readiness for exploratory drilling. 

The consortium is expected to decide when to proceed with drilling soon. 

ExxonMobil expects first gas from the project in Block 2 in the early 2030s, with project investment estimated at between $50m and $100m, reported Reuters. 

ExxonMobil global exploration vice-president John Ardill said: “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 time frame.” 

Exploratory drilling is anticipated in late 2026 or early 2027, subject to regulatory approvals and an extension of the exploration phase. 

This operation would mark the first exploratory offshore drilling in Greece since 1981, when the Katakolo hydrocarbon field was discovered. 

In the past two decades, the only production wells to have been drilled offshore Greece have been by Energean in the Prinos area. 

Energean CEO Mathios Rigas said: “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, utilising domestic energy resources responsibly and in line with the strictest international standards.” 

In 2022, the consortium acquired and processed 2,244km² of 3D seismic data across Block 2. 

The data identified the ‘Asopos’ structure as the primary target for exploration. Block 2 is considered to be the largest unexplored offshore structure in the Mediterranean. 

The completion of the agreement is contingent on securing all required governmental approvals and meeting customary closing conditions. 

The deal reflects growing US interest in Greek offshore energy following the recent selection of a consortium led by Chevron and  Helleniq Energy as the preferred bidder for other exploration blocks. 

Helleniq Energy CEO Andreas Shiamishis said: “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.”