Greek hydrocarbon exploration clears up

Companies that will undertake the offshore hydrocarbon exploration in the Ionian Sea and south of Crete, and explorations in three onshore regions (Arta, Aetoloakarnania, NW Peloponnese) whose tendering go-ahead has been signed by Maniatis, will pay to the state 4 pct of the hydrocarbons' value, 20 pct income tax and 5 pct regional tax.

There will be no additional tax or fee, extraordinary or regular, or any other type of fee, accordign to the decision. The two relevant ministerial decisions signed on Monday will be published in the Government Gazette and afterward in the Official Journal of the European Union.

The ministerial decisions concern the tender for the International Round of Concessions for the Rights to Exploration and Exploitation in 20 sea blocks in the Ionian Sea and south of Crete.

According to the procedure, offers will be accepted within six months after the day the tender will be published in the Official Journal of the European Union, or roughly until March 2015.

They also concern the international tender for the onshore regions in Western Greece “Arta-Preveza”, “Aetoloakarnania” and “Northwest Peloponnese” for which ENEL company has expressed interest in mid April. According to existing legislation, investors are called to express interest and submit their offers within 90 days after the tender's publication in the Official Journal of the European Union.

The exploration stage will last up to 8 years with the option of extension, while the exploitation stage begins as soon as commercially exploitable hydrocarbon reserves are found and can last 25 years with the option of other two five-year extensions.

A high-profile and well-attended event at London’s Hellenic Centre on July 1-2 most recently gave the government an opportunity to highlight the new opportunities in this sector

The July gathering in London constituted an official pre-launch event for the upcoming Offshore Licensing Round 2014 for new hydrocarbon blocks in the Ionian Sea and the Libyan Sea, south of Crete. 

The offshore hydrocarbon potential targets spread through an area of over 225,000 sq km, ranging from north of Corfu in the Ionian Sea to the Libyan Sea south of Crete.