Greece Secures Historic Energy Deal with ExxonMobil Amid Criticism

Greece has signed a significant deal with the American energy company ExxonMobil, marking its first offshore drilling project in 40 years. The agreement, described by Prime Minister Kyriakos Mitsotakis as “historic,” aims to position Greece as a vital player in European energy supplies. This announcement follows a recent exploration agreement with Chevron, another major U.S. energy firm, further solidifying Greece’s ambitions in the sector.

The deal was finalized on October 19, 2023, during a two-day conference in Athens, attended by four members of the U.S. cabinet, including Energy Secretary Chris Wright. Energy ministers from over 20 countries and representatives from various energy companies were also present. Under the terms of the agreement, ExxonMobil will hold a 60-percent stake in a venture that includes London-listed Energean and Greece’s Hellenic Energy, focusing on exploration in the Ionian Sea, particularly west of Corfu. Prime Minister Mitsotakis stated that exploratory drilling could commence within the next 18 months.

This new energy strategy aligns with broader European goals to reduce reliance on Russian gas imports, especially after most EU member states approved a ban on Russian natural gas by the end of 2027. The initiative aims to diminish funding sources for Moscow amid its ongoing conflict in Ukraine.

Greece has been investing significantly in both renewable energy and natural gas as part of its strategy to decrease dependence on lignite. The recent launch of the Trans-Adriatic Pipeline, linking Greece and Bulgaria, has enhanced the country’s role in supplying energy to Eastern Europe. Additionally, the establishment of storage facilities at the port of Alexandroupolis has facilitated the importation of American liquefied natural gas (LNG), further challenging Russia’s market presence in the region.

Mitsotakis emphasized Greece’s strategic position, stating, “Greece is the natural gateway for American liquefied natural gas to replace Russian gas in the region.”

Environmental Concerns Raise Alarm

Despite the economic prospects, environmental organizations have raised serious concerns about the deal. Critics argue that the offshore drilling project poses a significant risk to marine life, particularly to species such as whales and dolphins inhabiting the local waters. Greenpeace Greece condemned the government’s actions, claiming that it is engaging in “acrobatics” by professing to protect marine ecosystems while permitting seismic surveys and other potentially damaging activities.

The areas designated for hydrocarbon exploration in the Ionian Sea are close to a planned marine protected area. Greenpeace highlighted that the ExxonMobil field is adjacent to the Hellenic Trench, a biodiversity hotspot crucial for various marine species. The organization also pointed to ExxonMobil’s history of operational accidents, which have led to environmental disasters and fatalities.

Furthermore, Thedota Nantsou, policy director for WWF Greece, has warned that the promotion of hydrocarbons carries a “huge risk” of accidents and leaks. “We cannot move towards the future of climate change by looking to the past with outdated tools like LNG,” she stated.

As Greece embarks on this new chapter in its energy sector, the tension between economic aspirations and environmental preservation continues to be a focal point of debate. The government’s commitment to enhancing energy security in Europe must now navigate the complex landscape of ecological responsibility as it seeks to implement these ambitious energy strategies.