The first onshore concession that looked like it would go ahead with exploratory drilling in Greece appears to be heading for the wall after a series of bureaucratic delays. The reason is the Ipiros-1 concession to Energean, for which 30 residents and local collectives had filed two objections to the Environmental Conditions Approval Decision for exploratory drilling.

THE PROPOSALS

Recall that the Ministry of Environment issued the decision in November 2023, following a lengthy consultation period during which local political bodies, including the Regional Council of Epirus, the Municipality of Zitsa, and the community of Agios Christoforos, the site of the drilling, expressed their support. The technical bodies involved in the project were also positive, such as the Forestry Department, the Water Directorate, the Ephorate of Antiquities, and the Technical Chamber of Epirus.

The State Court postponed the hearing to the spring after not hearing the residents' objection last October.

END OF CONCESSION

State and energy time limits and extension possibilities will end by then. Now, Energean must ask the Council of Ministers for a contract extension. However, company sources openly express their concern about the huge delays, both in terms of permits and studies and in court decisions regarding appeals. As the same sources point out, the company has already invested €46 million and would require another €40 million for the next step, underscoring that such an investment is a risk when another appeal could set the project back another 2-3 years.

THE SYNOPSIS 

The Ministry of Environment's decision paved the way for the first exploratory drilling in Greece in more than 25 years, with the exception of Prinos. Remember, the Ministry of Environment had granted four previous exploration permits in the late 1990s, but they had yielded no results. 

According to market players, companies are currently evaluating potential drilling in five areas, but the state's reluctance to provide a definitive solution due to judicial bureaucracy delays does not provide a clear signal about the direction of investment. 

An indicator of the delays companies are facing in the country is the comparison of the drilling operations Energean is running in Greece and Israel. The company received the concession in Ioannina in 2013 and, to date, has not even drilled an exploratory well. 

In Israel, the company acquired the Karis field in 2017 and began production in October 2022, despite a pandemic-induced delay. The same company discovered North Karis in 2019, and despite the country being in a state of war, it recorded a 39% year-on-year increase in production in the country in the nine months, with the Katlan field development project progressing on schedule, while drilling is expected to start in 2026 on the Athena and Zeus structures, which may include exploratory drilling in the region in order to start production in 2027.