Prof. John Maniatis, Greece’s Minister of Environment, Energy & Climate
Change addressed today
IENE’s 2nd SE Europe Regional Upstream Workshop on “Hydrocarbon Exploration
and Production in the Adriatic, the Black Sea and the East Mediterranean” . Here follows Mr. Maniatis's speech at IENE's Workshop:
"Ladies and gentlemen,
Southern Europe finds itself at a crucial crossroads of its
contemporary history. Italy, Spain, Greece, Portugal, Cyprus, Ireland,
all the political European South, faces tremendous shocks that go deep
in the heart of their social cohesion.
Taking into account the need for a new, sustainable development
model, natural resources and especially hydrocarbons, can play a vital
role for the provision of new public revenues that will keep national
economies alive and resistant.
Energy can play a leading role in helping Greece to break out from
an austerity “trap” that has been “shrinking” our economic prosperity
for more than 6 years.
It can also help consolidate Greece’s image as a country that
remains necessary for Europe as an “island” of stability in what is
becoming an “Ocean” of increasing volatility in the wider Eastern
Mediterranean.
At the top of our priorities is the need to consolidate our
nation’s energy security by diversifying our import sources and routes
and increase our energy efficiency.
One important step was the establishment of the public authority, of the Hellenic Hydrocarbons Management Company S.A, which, on behalf of the Greek state, shall exercise its hydrocarbon rights and will
undertake the responsibility to organize and execute all the relevant
exploration and/or production tenders, evaluate the offers, select the
winners, prepare the relevant contract agreements and constantly
supervise their appropriate execution.
Our obligation to reattribute the value of
hydrocarbons wealth to the Greek society and to support at the greatest
possible way the next generations has been demonstrated through the
foundation of the National Account of social solidarity of new
generations.
Greek Government is fully committed to explore its hydrocarbon
potential in all areas where the Hellenic Republic exercises sovereign
rights in accordance with the provisions of the United Nations
Convention on the Law of the Sea.
The Open door tender for the three blocks of Ioannina, Gulf of
Patraikos and Katakolo in offshore and offshore Western Greece is at the
final stage.
In addition to the three abovementioned areas, Greece engaged in an
extended multy-client seismic survey programme of 12.500 km of seismic
lines covering an area of 220.000 km2 (square km) in offshore western
Greece and south of Crete, which performed by the Norwegian PGS. Data
acquisition completed in February 2013, data processing is ongoing at
Houston expected to be completed by January 2014.
The preliminary analysis of acquired data indicates the existence
of promising target areas in the Ionian Sea and the Sea to the South of
Crete. The interest already being expressed by oil companies to data
purchase strengthens our confidence that our endeavor will be successful
and the upcoming official licensing round will be a milestone to the
opening of upstream market in Greece.
Ladies and Gentlemen,
A number of significant developments in terms of policy and
infrastructure are currently taking place in SE Europe which when
completed, by the end of this decade, will have helped reshape the
energy landscape of the region. These developments concern both market
operation and energy production/ transmission capabilities.
The large scale exploration of Cyprus’ gas deposits and broader
hydrocarbon development in SE Mediterranean will necessitate new gas
corridors (like East Med pipeline and LNG)
Greece through its participation in the
Trans Adriatic Pipeline
consortium has emerged as the gateway for Azeri gas exports to Europe
and the leading champion of the EU’s Southern Gas Corridor that will
provide the EU with up to 20 bcm/y.
The IGB pipeline has a wider regional importance (ranked first
among EU Projects of Common Interest (PCI). IGB is creating synergies
with smaller interconnectors in the region (eg. IBR), allowing access to
the evolving SEE energy market.
In conjunction with IGB, FSRU terminals in North Greece provide
opportunity to reach the growing SE European energy market offering
possibilities for diversification of natural gas sources and further
penetration of LNG in the area.
The Underground Gas Storage Facility of South Kavala together with
Revithousa LNG storage will fulfil the obligation to Member States to
cover the maximum daily consumption in the event of disruption of the
single largest gas import infrastructure with possible occurrence once
in 20 years. The Kavala Gas Storage is ideally positioned to support
major gas pipelines and interconnectors (TAP, IGB, IGI) or act as an
entry point for new offshore gas projects in the East Med region.
Whether by LNG and/or by pipeline, the linking of East
Mediterranean resources with European markets should constitute a new
European Strategy, analogous in significance, with the Southern Gas
Corridor Policy. Greece along with Italy will systematically promote the
concept of this new
East Med Corridor Strategy throughout 2014 during the successive Greek and Italian Presidencies.
The East Med pipeline to link Cyprus to Crete and then to mainland Greece has some distinct advantages for Europe.
The pipeline option helps to strengthen political and economic
cooperation, enabling countries to determine their own foreign policy
and security orientation. As a result, a pipeline may become easily a
significant regional factor.
In the field of electricity, latest discoveries of substantial
hydrocarbon deposits in the Eastern Mediterranean, may have a positive
effect on European energy security as well as on the commissioning of
new international electricity interconnections.
We are delighted that the Commission’s competent Decision Making Body, decided some months ago, to include
the
subsea electrical cable, the Euro-Asia Interconnector, a project of 3.5
billion Euros budget, in the final Projects of Common Interest (PCI)
list.
The further development of the Greek Transmission Grid and the
proposed new cross-border interconnections with Bulgaria and Italy is of
paramount importance in terms of evolving the unification of the SE
European electricity market
Ladies and gentlemen,
To conclude I would like to say that through careful policy design
and good governance countries can develop natural resources
successfully.
The coming years will undoubtedly bring new gas discoveries in the Eastern Mediterranean.
Getting the greatest possible number of countries that share or are
interested in the region’s hydrocarbons on the same page and earmarking
their exports for an energy-thirsty Europe, we will boost them all
geopolitically and geo-economically.
Thank you very much for your attention".