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Dept. of Petroleum & Natural Gas Engineering
M.Sc. in Oil & Gas Technology
Course Assignment for Energy Policy - Geostrategy
Team Members:
A. Pitatzis, L. Eleftheriadis
Kavala, December 2014
(References 1,2,8,9)
The recent trilateral partnership and agreement for respect in International Law in Cairo, between
Greece, Cyprus and Egypt have set strong foundations in the declaration of the Greek EEZ.
Furthermore, Cyprus had agreed with Egypt, Lebanon and Israel which also recognize the Greek
EEZ. Libya, on the other hand, does not recognize the existence of Gavdos island and its
participation in the EEZ and at this point the conversation between the two countries about the
middle line is stuck.
Turkey for more than thirty years insist that an agreement between Greece and Turkey in respect
of middle line cannot happen and threats Greece with an act of war ,casus belli ,in case that the
last one proceed to the extension of the territorial sea in twelve nautical miles. Turkey despite the
fact that did not take part in the Convention of the Law of the Sea in 1982, partially declared EEZ
in the black sea in 1986, and proceeded in an agreement with Romania and Bulgaria in respect of
the middle line.
EEZ of Greece and neighboring countries based upon the International Law of the Sea (UNCLOS)- Mazis 2011
(References 3, 4)
An early attempt in hydrocarbon exploration made back to the beginning of the 20th century
(1903).
Exploration efforts were mainly focused on on-shore areas, and were characterized by surface oil
shows evidence. These efforts were discontinuous up to the early 60s. In the next decade
exploration became more systematic and it was first established a public body, oriented to the
exploration of hydrocarbons. The systematic exploration of that period had as result the discovery
of the first exploitable hydrocarbon reserves in Prinos, an off-shore area of Thasos (1971-1974).
The establishment of the public body led in 1975 to the foundation of the Public Petroleum
Corporation (DEP). DEP was responsible for the exploration starting from its establishment till
the mid 90s. The first law governing hydrocarbon exploration (L. 468/76) was approved the next
year from the establishment of DEP. The Greek government granted to DEP and its subsidiary
company 24 on-shore and off-shore areas for hydrocarbon prospecting, exploration and
production. The main outcome of the seismic surveys in these areas was the discovery of oil in the
off-shore Katakolo area in NW Peloponnese.
In 1996 the first International Licensing Round, involving 6 concession areas, was performed,
following the law 2289/1995 which came into act after adopting EC Directive 94/22/EC
concerning the prospection, exploration and exploitation of hydrocarbons. The Greek government
invested in seismic surveys and drilling up to 85M , but failed to deliver results.
In 2011 following a decade with no exploration activity, the Hellenic Hydrocarbons Resources
Management Company S.A was established. The H.H.M.R.C.S.A. was established under the law
4001/2011 concerning the prospection, exploration and exploitation of hydrocarbons and replaced
the law 2289/1995. The Hellenic Republic Ministry of Environment, Energy and Climate Change
(YPEKA) in 2011 granted to Petroleum Geo-Services (PGS) MC2D data for areas in Western and
Southern Greece. The program comprised of 12,500km new data acquisition using GeoStreamer
with GeoSource and combines re-processing of 9,000km and matching of 13,000km of legacy data
into a regional interpretation.
understanding of regional structure and depositional basins and to identify petroleum systems.
(References 12,13,14)
The United Nations Convention on the Law of the Sea (UNCLOS III) that took part in 1982 in
Monteco Bay came into act in 1994 with the EC 94/22/EE. The law 468 was replaced by the law
2289/95, which incorporated a large part of the EC Directive 94/22/EE, concerning the
prospection, exploration and exploitation of hydrocarbons in the Greek legislation. Based on the
law 2289 the Greek government performed in 1996 the first International Licensing Round with
the disappointing results that mentioned above.
The existing legal framework concerning the procedure of granting exploration/exploitation rights,
was recently reformed with the approval by the Greek Parliament of the new law 4001/2011. The
new law modernizes and clarifies the legal framework being in force since 1995, followed by the
establishment of new attractive entrepreneurial environment. Before the approval of the law 4001,
the Hellenic Republic Ministry of Environment, Energy and Climate Change (YPEKA) has
already preceded to an International Public Invitation for the Participation in non-exclusive seismic
survey offshore Western and Southern Greece. The State, at the same time, announced the granting
of exploration and exploitation rights in three areas (Patraikos Gulf, Ioannina and Western
Katakolo) following the procedure of open door invitation which was published in the
Government Gazette (No.76/27.01.2012).
Moreover, the establishment of the Hellenic Hydrocarbons Resources Management Company S.A
was included in the law 4001/2011 and its statute in the Presidential Degree No 14 (FEK A
21/13.02.2012). The H.H.R.M S.A. has the responsibility to manage the exclusive rights of the
Greek Public related to exploration and exploitation of hydrocarbons.
Exploitation of Hydrocarbons, and other provisions. These 20 offshore blocks have a total
acreage of 225.000 square kilometers. Furthermore, on November 13 the Notice of Call for
Tenders was published in the Official Journal of European Union (2014/C 400/03). The
Application Deadline is six months after the date of publication of the Notice of Call for
Tenders, on May 14 of 2015.
20 offshore blocks south and west of Greece-Official Journal of European Union (C400/4)
included in the invitation, and the rights for this area were granted to Hellenic Petroleum, Edison
and Petroceltic.
The Italian company ENEL TRADE SpA on April 14 of 2014, submitted to the Ministry of
Environment, Energy and Climate Change (YPEKA) an expression of interest in granting and
using authorization for the exploration for and exploitation of hydrocarbons within three (3)
onshore areas, Arta-Preveza, Aitoloakarnania and NW Peloponnese in Western Greece. These
three onshore areas were included in the first Licensing International Round of 1996. The Ministry
after accepting the aforementioned expression announces an invitation to other possible interested
parties to participate in this tendering procedure. The Notice of Call for Tenders was published in
the Official Journal of European Union (2014/C 390/05) on November 5. The interested companies
have three months to apply for granting the rights for exploration and exploitation of these three
areas. Hellenic Petroleum and Energean Oil & Gas, are the companies that interested for these
areas, except ENEL Trade.
The second International Licensing Round 2014 were interested parties are called to apply for
granting rights for exploration and exploitation in respect of the twenty off-shore blocks west and
south of Greece is expected to attract the interest of major companies of the Oil & Gas industry.
In the International Congress Balkans and the Adriatic Oil & Gas which was hosted in Athens
on October 1, seventeen international companies were participated. Among these companies were
Shell, Statoil, Dana Gas, Exxon Mobil, Gazpromneft, Bankers Petroleum, Petromanas and OMV.
Exxon Mobil and Total are the first two international companies that bought recently for 5 million
dollars from PGS the seismic survey.
(References 5,6,15)
10
of European interest, included it among the Southern Corridor projects co-financed from the
resources of the European Plan for Economic Reconstruction in the energy sector (EEPR),
approving a grant of the manufacturing cost of the amount of 100 million euro. The ITGI project
is scheduled to be operational by 2015 as the first phase of the Southern Corridor.
11
final
consumers.
The ASFA Alexandroupolis aims to create a fourth gas inlet gate in Greece, providing capacity to
of 6.1 billion cubic meters of gas annually and storage capacity of 170,000 cubic meters LNG gas.
This project was also recognized on November 21 as a project of European interest and is part of
the Front-End Engineering and Design program (FEED) co-financed from the resources of
Connecting Europe Facility (CEF).
(References 7, 17, 18, 19)
12
http://www.defencegreece.com/index.php/2012/04/southeastern-mediterranean-hydrocarbons-a-new-energycorridor-for-the-eu/
13
Greece leads Europe Energy Security for the next decades through the
existence of Methane Hydrate in Greek Economic Zone (EEZ)
Source: Praeg, D., Geletti, R., Wardell, N., Naziole, I. Sperimentale, G., Gigante, B. G., Migeon, S.
(2011). The Meditteranean Sea: A natural laboratory to study gas hydrate dynamics? Vikram
Unnithan, (Icgh).
14
As you can observe from the maps above of the entire Mediterranean region the majority of the
possible recoverable methane hydrate deposits are in EEZ of Greece and in the Levantine Base in
Egypt. It is an opportunity for the exploration of Methane Hydrates for the European Union for
several reasons, including the following:
Change the European Energy mix to more environmentally friendly natural resources
through the decrease of the use coal and oil and an increase in the use of natural gas from
methane hydrate- Urban Development- Unlimited safe supply of natural gas to the
European industry.
Increase the geopolitical impact of the European Union through common defense and
energy policies[20]
Some facts about the European Union and Methane Hydrates that can be crucial for the future are:
Europe until the given date is confused and focuses its attention on internal affairs. This
can be catastrophic because if the EU wants to enter and explore the possibility of
extracting methane hydrates it is at best lagging 20 years behind the USA and 10 behind
Japan in terms of Technology, Research, Legislation and Geopolitical planning.
According to Japanese scientists that complete the first successful drilling operation on
methane hydrates this process will be commercially available in the next 6 years until 20182020. Our personal estimation is that within the next 3 years the process will be
commercially available. This hypothesis nevertheless explains the latest American
geopolitical actions and steps, such as the focus of American strategy in South East Asia,
maybe not only in China but also the possible commercially recovery of enormous methane
hydrate deposits (refer to the map above for the methane hydrate deposits). This situation
concludes that Europes geopolitical blindness will lead this historic place to being an
energy hostage by one of the major geopolitical actors.[20]
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Energy Security
We also want to mention that Greece does not have the capabilities of the USA nor Japan but can
provide these countries with the opportunity to perform the first commercial drilling operations
within the Greek Exclusive Economic Zone due to the proximity of the Mediterranean Sea hence
making these specific operations safer. Moreover, the USA and Greece have as a common goal
the safe energy security of the European Union.[20]
Resources Technology
16
Perfect
Geography
Total independence of Japan by imports of natural gas, partly perhaps the independence of
China as well.
Gradual crowding from countries which produce conventional forms of hydrocarbons such
as Saudi Arabia and Qatar, but not Russia, which has several possible areas with existing
deposits of methane hydrates.
Future supply of the European Union's natural gas production from methane hydrates from
the Black Sea and the Southeast Mediterranean.
Increase of the geopolitical importance of the following areas due to the presence of
methane hydrates: Southeastern Mediterranean, Southeast Asia, the Black Sea, Caspian
Sea, North Sea and of course the seas around India which appear to contain large amounts
of methane hydrates.[20]
Through extraction of Methane Hydrate when it will be commercial possible in Greek EEZ, Greece
can involve all the major Geopolitical Players and their interests, more specific USA, Japan, China,
Russia and of course European Union.
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LNG Fuel Tanks- Transportation through train from Greece to Europe- New
adding value for Greek EEZ
As Nikos Lygeros present us in this article http://www.lygeros.org/articles.php?n=15854&l=gr
LNG technology evolves rapidly and in Greece we dont exploit this. The last decades in USA
they transfer fuel (Oil mainly) through train, so we dont transfer natural gas in LNG from Greece
to European Union Market.
Opportunity here
http://www.centreforenergy.com/AboutEnergy/ONG/LiquifiedNaturalGas/Overview.asp?page=1
18
According to the article Natural Gas Trains & Trucks Coming Through from the
http://energyindepth.org/marcellus/natural-gas-trains-trucks-coming-through/
The
Canadian
National Railway is experimenting with natural gas as a train fuel, which involves adding a
liquefied natural gas tank behind the locomotive. The switch from diesel could save money. Photo:
Canadian National Railway/San Francisco Chronicle. (Observe the photo below)
http://energyindepth.org/marcellus/natural-gas-trains-trucks-coming-through/
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Through the implementation of the above strategy we adding value to Greek EEZ and economy,
some suggestions which can lead us to our target:
According to the Greek government privatization program we are going to privatize our
national train companies, if we are going to sell them then we must give them to a company
or state who has a lot of cash and with the ability to make a lots of investments in our train
infrastructures because if we want to implement the above strategy we want to change all
of train transportation system. The basic idea is to give them to the Chinese due to they
already possess Piraeus port and they want to deliver their product in Europe through train.
Recently and according to this article http://www.viadiplomacy.gr/h-kina-isvali-stavalkania-kineziki-ikonomiki-diplomatia/ Chinese will invest in Serbia rail way system, this
is a signal that they want to connect Greece with Europe through train through GreeceSkopia- Serbia and then to Europe. Also they have express their interest officially and
through the media that China want to invest in Greek train infrastructure. It is a great
opportunity for Greece to expand her strategic alliance with China, a rising geopolitical
player.
Secondly, the Greek state must force the private sector of Greece to involve in the
construction of these LNG Fuel Tanks and through cooperation with foreign companies
the Greek companies must learn and adopt the know-how of LNG Technology. This
strategy can give Greece new opportunities for growth and the ability to use LNG
Technology to public and private transportation and many other things.
Dont act individual in this issue because we will never succeeded alone
Every one of us share the idea of Greek EEZ and the benefits which derived from this
action to the Greek citizens
All of us must unite to complete this target, for that reason Nikos Lygeros promotes the
Signatures
favor
of
establishing
the
Greek
EEZ
in
this
site
20
We know we had extend the 10 pages but we want to give to any Greek individual citizen a small
Handbook- tool in case somebody wants to present to the other Greeks, in families, organizations
or friends the benefits for Greek nation which derived from the declaration of Greek EEZ.
In terms of logic we want the transaction from the Greek term vision to the real. (Observe the
photo below)
21
References
[1] ( 2013).PDF. (n.d.).
[2] Area, B. (2014). NOTICE ANNOUNCING THE INTERNATIONAL CALL FOR TENDERS
FOR GRANTING AND USING, 711.
[3] Gas interconnection. (2013), 3.
[4] Nations, U. (n.d.). of International Cases on the Law of the Sea United Nations.
[5] Parliament, E. (2014). Notices from member states, 411.
[6] Republic, H., Environment, M. O. F., Change, C., Secretariat, G., Energy, F. O. R., Change,
C., Policy, P. (2012). FURTHER INFORMATION & GUIDANCE ON THE OPEN DOOR
INVITATION ( Government Gazette No 76 , Part B , 27 . 01 . 2012 ) for granting and using
authorizations for the exploration and exploitation of hydrocarbons ., (76), 118.
[7], . (2014). , (20).
[8] http://www.elzoni.gr/html/ent/984/ent.29984.asp
[9] http://www.onalert.gr/stories/aigaio-ola-osa-prepei-na-xeroume-gia-aoz-yfalokripida/33581
[10] http://www.iskra.gr/index.php?option=com_content&view=article&id=18244:2014-10-2515-20-38&catid=71:dr-kinitopoiisis&Itemid=278
[11]http://www.cyprus.gov.cy/moi/pio/pio.nsf/0/AB89462E00BC0F73C22575710025E69C?ope
ndocument
[12]http://www.ypeka.gr/Default.aspx?tabid=765&locale=en-US&language=el-GR
[13] http://www.ypeka.gr/Default.aspx?tabid=766&locale=en-US&language=el-GR
[14] http://www.pgs.com/Data_Library/Middle-East-and-Mediterranean/Greece/
[15] http://www.psg.deloitte.com/newslicensingrounds_gr_140819.asp
[16] http://www.ethnos.gr/article.asp?catid=22770&subid=2&pubid=64042549
[17] http://www.tap-ag.gr/
22
[18] http://www.depa.gr/home.html
[19] http://www.gastrade.gr/
[20] Article Methane Hydrates: Fuel Of The Future As It Is Called, And The Geopolitical Footprint
In The Global Energy Map, By Athanasios Pitatzis, Hatziioannou, G. (2014). E n erg y I nter n
atio n al R is k A s s es s m ent, 2(12), 115.
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