HELPE is the driving force in hydrocarbon exploration in Greece
A brief retrospective in hydrocarbon exploration in Greece proves that over time HELPE (formerly DEP and DEP-EKY) constitutes the driving force in this business activity in Greece.
1975 - 1998
In the beginning DEP and DEP-EKY explored Greece
In 1975 DEP SA (Public Petroleum Corporation) is founded, with international-level infrastructures and personnel and for the next 20 years systematically explores 24 hydrocarbon potential areas in the country, for which Hellenic Republic has granted hydrocarbon exploration and exploitation rights to the company. Know-how is created and several geochemical and geophysical studies are drawn up, geophysical work is carried out monitoring/processing/interpretation of 65.000 km seismic, gravity and magnetic prospects, as well as 75 exploration wells either by using own resources (seismic monitoring and data processing, onshore drilling rig) or by third party service companies.
Three marginally noncommercial fields in Epanomi, Katakolo and Alykes (Zante) are being discovered, nevertheless the existence of an active petroleum system is proven in certain areas (Ionian Sea, N. Aegean, Sea of Thrace, Thrace). Exploration work is being financed by Prinos’ production revenues and by the Public Investment Program.
In 1986, DEP SA establishes a subsidiary, DEP-EKY SA (Public Petroleum Corporation- exploration and exploitation of hydrocarbons) and passes its rights and obligations to the latter. Unfortunately, since the mid ‘ 90s, exploration work is gradually decreased and is limited only to selected areas (onshore W. Greece, Ionian, Thermaikos), due to reduced financing by DEP and the Public Investment Program.
In 1997, DEP EKY successfully launches the first International Licensing Round and 4 Lease Agreements are signed respectively for the areas of W. Greece, Ioannina and NW Peloponnese with the companies Enterprise, MOL, and for the areas of Patraikos and Aitoloakarnania with Triton company, whereas in every concession area DEP-EKY participates as partner (12%) and new exploration work is underway.
HELPE takes over and carries on its activities abroad
In April of 1998, under the umbrella of DEP SA and after the merger between the state owned companies in the oil and gas industry (ELDA, ELDIHIMAK, EKO and DEP-EKY), Hellenic Petroleum SA is founded and is listed on Athens Stock Exchange.
Despite the initially positive results of the exploration activity, especially in Patraikos (localization of the geological structure for drilling) and in Ioannina (drilling with positive indications that was however abandoned, due to technical difficulties), foreign partners withdrew from W. Greece, due to their acquisition by bigger companies (2000-2001 Shell buys out Enterprise and Amerada Hess buys out Triton). HELPE chooses at the relevant period not to continue any exploration work in the country on its own and as a result the 4 concessions areas in W. Greece were returned to the State.
During 2002-2003, when HELPE was setting its policy for development and expansion of the Group and was proceeding in selected acquisitions in the downstream sector in the broader region of NE Europe (BP Cyprus, JPK, OKTA etc.), it was at the same time making impressive moves in the hydrocarbon exploration sector by acquiring concession rights in Libya (6 concession areas), in Albania (two concession areas) and in Montenegro (three offshore concession areas through JPK’s acquisition).
Unfortunately, in Greece exploration work was limited to desk studies and finally the Greek Government in 2007 unilaterally recalled all concession areas granted to HELPE (apart from the concession area of the Sea of Thrace).
HELPE’s presence abroad, sets the foundations for collaborating with international oil companies and the company is lead to a period of greater extroversion. After an International Licensing Round, HELPE is granted hydrocarbon exploration and exploitation rights for two concession areas in Egypt (2005-2007) and creates a fully staffed subsidiary with operator structures. At the same time, in Libya 26 exploration wells were drilled, and 200 million recoverable barrels were discovered (2006-2008), while in the end, their sale was decided based on the country’s difficulties, with HELPE gaining a net profit of approximately 105 million USD.
1999 - 2008
2009 - 2013
The groundwork was laid for HELPE to return in Greece
HELPE’s Upstream team, already possessing accumulated international technical and business experience and with profound knowledge of Greece’s geology, as well as knowledge of the geology of the broader area of North Europe and Mediterranean region as one of its assets, is systematically working and establishes according to strict criteria, business opportunities for hydrocarbon exploration in Greek territory. In parallel, after two voluntary redundancies the company is drastically reorganized and remains a small group of 22 persons.
The Ministry of Environment and Energy launches an international tender for hydrocarbon exploration and exploitation licenses, “open door,” for three areas in Western Greece. The oil market however is hesitant and there is no interest for the country, despite HELPE’s persistent efforts, which in the end participates in the tender (June 2012), and is granted rights for Patraikos as operator of an international consortium with Edison and Petroceltic (today the consortium consists of HELPE 50% and Edison 50%).
2014 - 2019
HELPE creates an important portfolio of ten concession areas in the country
HELPE is integrating new technology-all of PGS’s marine seismic- into the existing legacy data and forms a new image of the petroleum potential in the country (2014-2015), creating thus an especially important and unique comparative advantage, which is reinforced by the Group’s shareholding structure and by its powerful financial and commercial position.
The Upstream team studies and forms interesting geological models, and supports interesting cases both technically as well as commercially (especially after the discovery of Zohr field in Egypt) and after a marathon effort, it has managed to attract the interest of important oil companies, by creating consortiums (Statoil, Edison, ENEL, ExxonMobil, Total).
Hellenic Republic launches an international tender (2014) for three onshore areas (Ioannina, Aitoloakarnania, NW Peloponnese) and another tender for twenty offshore areas in the Ionian Sea and in Crete. The company submits offers and gets awarded concession rights in two onshore areas (Arta-Preveza and NW Peloponnese) and in three offshore areas (blocks 1 and 10 and block 2 with Total (50% operator), Edison 25% and HELPE 25%).
In 2016, based on a technical and business proposal by HELPE, a consortium is established: with Total 40% operator, ExxonMobil 40% and HELPE 20% and submits an expression of interest to Hellenic Republic for two extremely large areas in Crete, and gets awarded hydrocarbon exploration and exploitation rights following an international tender. In parallel, HELPE collaborates with Repsol and the new consortium (Repsol 50% operator and HELPE 50%) submits an offer and gets awarded hydrocarbon exploration and exploitation rights in the “Ionian” sea (March 2018).
HELPE sets the pace in the country’s hydrocarbon exploration
HELPE Upstream has created over the last years a very promising portfolio of ten selected blocks in Greek territory, where it is estimated that there are important commercially exploitable deposits of hydrocarbons to be discovered, and at the same time the company proves in practice on the one hand that the protection of the environment is an absolute condition in all of its business activities, that sustainable development is the core of its operations, and on the other hand, it goes without saying, that the company collaborates and supports local communities.