ExxonMobil has signed a deal to explore for natural gas offshore Greece, increasing the U.S. presence in the eastern Mediterranean just as the Trump administration seeks to replace Russian energy flows into Europe.
The United States, which holds vast reserves of domestic natural gas, wants to provide a larger share of Europe's energy mix via liquefied natural gas as the European Union seeks to phase out Russian gas imports in the coming years.
"We have a tremendous opportunity right now to displace all of the Russian gas - every last molecule - out of western Europe," U.S. Energy Secretary Chris Wright told a conference in Athens on Thursday.
"Every molecule that Russia does not sell into Europe…stays in the ground, it does not go into the pocket of Russia’s war machine."
Under Thursday's deal, Exxon will partner with Energean, whose flagship gas fields are located offshore Israel, and Helleniq to explore for natural gas in Block 2 offshore Western Greece, the companies said.
"This significant exploration agreement paves the way for potential future exploratory drilling investments in the 2027 timeframe," said John Ardill, Exxon's vice president of global exploration.
GAS COULD FEED INTO TAP PIPELINE
The first exploratory drilling is expected in late 2026 or early 2027. ExxonMobil expects the first gas from the project in the early 2030s if all goes well, Ardill told Reuters on the sidelines of a conference in Athens.
The project will require an investment of between $50 million and $100 million, he said.
Greece, which produces small volumes of oil and relies on hefty gas imports for power generation and domestic consumption, has been keen to explore for gas and bolster its role as a transit route for Europe.
Last month it named a consortium of Chevron and Helleniq as the preferred bidder for exploration in other offshore blocks.
Gas could be fed into the Greek domestic market but, given the project's proximity to southern Italy, it could also join the TAP pipeline system that carries gas from central Asia to Italy, Energean Chief Executive Mathios Rigas told Reuters in call.
U.S. OFFICIALS LAUD NEW DEAL
Exxon will take a 60% stake in the concession, while Energean will have 30% and Helleniq Energy 10%. Energean will run the project during exploration and Exxon will take over if exploration drilling proves successful, the companies said.
In July, Europe pledged to buy $250 billion a year in U.S. energy, from oil and liquefied natural gas to nuclear technology, for the next three years.
"America is back and drilling in the Ionian Sea," said the United States' new ambassador to Greece, Kimberly Guilfoyle.
