Greece Eyes $206 Billion From Oil & Gas Deposits

Greece can potentially bring in more than 150 billion euros ($206 billion) in state revenue over the next 30 years through untapped oil and natural gas deposits, said Prime Minister Antonis Samaras on Wednesday, with the sum worth nearly half of Greece’s current debt mountain.

There are “very strong indications of significant” reserves off Greece’s western coast, Samaras told reporters, as cited by Bloomberg, adding that explorative work was already ongoing in waters off the island of Crete in the south.

The gulf of Patras, in the west, is thought to hold some 200 million barrels of crude oil, while another 50-80 million barrels are believed to lie near Ioannina and another three million barrels near Katakolo.

In 2012, the government commissioned a Norwegian contractor to carry out seismic surveys in the Ionian Sea and south of Crete in search for oil and gas. Drilling contracts for the region are to be issued later this year.

“We are completing the concession agreements for the gulf of Patras and Ioannina, where the indications are strongest, and they will be tabled for ratification by parliament,” Samaras said.”

Meanwhile, Greece resumed bailout talks with its international lenders on Monday, hoping to end six months of wrangling over the release of new rescue loans it needs to avoid default.

Athens has already obtained 218 billion of the 237 billion euros set aside under the bailout, which expires this year; and will require another disbursement of funds to repay 9.3 billion of bonds maturing in May.

Economy Watch