Following its announcement of last January 17, the Institute of Energy for SE Europe (IENE) submitted an integral proposal regarding the Restructuring of the Sector of Hydrocarbons Research & Development in Greece to the Minister of Development, Mr Dimitris Sioufas, on April 17, 2006. The proposal initially focuses on the crude oil potential in Greek territory. IENE then stresses the international interest shown towards oil exploration in Greece and the total incapacity to take advantage of this due to the inexistence of a competent agency to handle the management of state interests in the sector of Hydrocarbon R&D in Greece.
Explorations for the discovery of hydrocarbons have a high yield, but by their very nature are high-risk, capital-intensive ventures that require specialized technology. The international practice is to concede the corresponding Exploration and Exploitation rights (Ε&Ε) pertaining to hydrocarbons to specialized oil companies under specific conditions.
Western countries adopted this “concession” approach decades ago. Following the discoveries of important reserves in the Caspian Sea, but essentially after the fall of state socialism, a number of new oil-producing areas in previously politically inapproachable regions (ex-Soviet republics) opened to concessions. Countries such as China and Vietnam have proceeded with multiple “Concession Rounds” with impressive results. As of 1990, neighbouring Albania has conceded the whole of its offshore region to large oil companies. Since 1962, Turkey has offered to concessions via its state-owned oil company (TPAO). More recently, countries with a high crude oil potential and which not so long ago were inaccessible, such as Libya, Algeria and Egypt, have also opened up the exploration of oil & gas fields to the international market through Concession Rounds.
With a view to the systematic organization of Concession Rounds in Greece and the supervision and organization of the Hydrocarbons Research sector, IENE proposes the creation of an agency in the form of a société anonyme, 100% owned by the Hellenic state, whose main objective will be to exercise the State's rights according to the legislative framework in effect (Law 2289/95). This company's objective should be to develop and manage, on behalf of the state, the whole of the oil industry's up-stream, comprising:
· The management of the State's rights as provided for in the legislation in force
· The promotion of hydrocarbon exploration, research and exploitation in Greece to ensure the security of supply, reduction of import costs and development of a new industry
· The issue of Research and Development permits and licenses regarding Hydrocarbons as provided for by the Law
· The supervision of the contractual terms
· The management of State participation
· National control of sensitive regions (e.g. Thracian Sea, East Aegean)
· The development of regions currently at HELPE's «disposal» that have yet to be exploited
· Participation in the necessary mapping out of Greece's sea frontiers.