Greece: Repsol pulled out of onshore Ioannina block

, SEE Energy News

Repsol was the operator of the Ioannina license, with 60 % stake. Spanish Repsol continues to divest its interests in hydrocarbon explorations in Greece, this time pulling out from onshore Ioannina block in the country’s northwest, leaving Energean Oil & Gas as the sole operator. The move is a part of a wider disinvestment strategy aiming to reduce the company’s international exposure to hydrocarbon exploration and production activities.

Greek Hydrocarbons Management Company (EDEY) has given a 6-month extension to Repsol to complete preliminary exploratory works at onshore Ioannina block due to the coronavirus pandemic. New deadline has been set to 2 April 2021. Energean will now seek new extension, because it will be searching for a new partner in the block.

In 2017, Repsol and Energean have entered into so-called farm-in agreement for 60 % stake in two onshore blocks in western Greece. The agreement envisages the lease of stake in these two blocks, which will also be operated by Repsol – Ioannina and Etoloakarnania. The two blocks cover a total of 8,547 square kilometers are priority exploration targets for Energean and are strategically important for Greek hydrocarbons sector. In January, a consortium consisting of Repsol and Energean Oil & Gas informed EDEY that they will surrender their hydrocarbon exploration and exploitation rights for the onshore Etoloakarnania block in northwestern Greece. The reasoning behind this decision is the sharp drop in oil prices that has made upstream investments unfeasible, as well as increased efforts to reduce their environmental footprint.