By Edward McAllister and Lefteris Papadimas
ATHENS (Reuters) -Exxon Mobil has signed a deal to explore for natural gas offshore Greece, increasing the U.S. presence in the eastern Mediterranean just as the Trump administration seeks to replace Russian energy flows into Europe.
Under the deal, Exxon will partner with Energean and Helleniq Energy to explore for natural gas in Block 2 offshore Western Greece, the companies said on Thursday.
“This significant exploration agreement paves the way for potential future exploratory drilling investments in the 2027 timeframe,” said John Ardill, Exxon’s vice president of global exploration.
First exploratory drilling is expected in late 2026 or early 2027. ExxonMobil expects first gas from the project in the early 2030s if all goes well, Ardill told Reuters on the sidelines of a conference in Athens.
The project will require an investment between $50 million and $100 million, he said.
UNITED STATES SEEKS LARGER SHARE OF EUROPE’S ENERGY MIX
Exxon will take a 60% stake in the concession, while Energean will have 30% and HelleniQ Energy 10%. Energean will run the project during exploration and Exxon will take over if exploration drilling proves successful, the companies said.
The deal increases U.S. interest offshore Greece, which last month named a consortium of U.S. oil major Chevron and Helleniq Energy as the preferred bidder for exploration in other blocks.
The United States, which sits on huge reserves of natural gas, is seeking a larger share of Europe’s energy mix as the European Union seeks to phase out Russian gas imports in the coming years.
In July, Europe pledged to buy $250 billion a year in U.S. energy, from oil and liquefied natural gas to nuclear technology, for the next three years.
U.S. officials who attended the signing ceremony at the Athens conference lauded Thursday’s deal.
“America is back and drilling in the Ionion Sea,” said the United States’ new ambassador to Greece, Kimberly Guilfoyle.
Greece, which produces small volumes of oil and relies on hefty gas imports for power generation and domestic consumption, has been keen to explore for gas and bolster its role as a transit route for Europe.
“This agreement represents an important step toward harnessing Greece’s natural resources and strengthening our country’s role on Europe’s energy map,” Energean Chief Executive Mathios Rigas said in the statement.
(Writing by Angeliki Koutantou and Edward McAllister; Editing by Clarence Fernandez)
