Greece will launch a tender for new gas exploration rights in its southwestern waters on Friday after an expression of interest by U.S. oil producer Chevron CVX, the Greek energy minister said.

Chevron submitted its non-binding interest to explore for energy at a deep-sea block south of the Peloponnese peninsula in the Mediterranean Sea.

“The tender process will start today,” Energy Minister Theodore Skylakakis told Greek radio, adding that a winner would be named by the end of the year.

Once the tender is published on the government gazette, Chevron and any other interested investors will have a deadline of three months to submit binding bids, the nation’s Hellenic Hydrocarbons and Energy Resources Management Company (HEREMA) said in a statement on Wednesday.

The area of interest borders two licensed blocks off the island of Crete, where an ExxonMobil-led consortium has been evaluating seismic data. Exxon XOM is expected to finalise any exploration drilling there later this year, Skylakakis said.

Greece, which has ramped up renewables capacity but still relies heavily on Russian gas for power generation, aims to tap domestic resources more actively as part of a European Union push to shift away from Russian energy after Russia’s invasion of Ukraine.

Major gas finds off Egypt, which lies south of Crete, have sparked hopes that Greek waters could also contain significant gas reserves.
Source: Reuters