ExxonMobil Joins Energean, HELLENiQ ENERGY in Ionian Sea Block 2 Through New Farm-In Deal
ExxonMobil, Energean, and HELLENiQ ENERGY Upstream have announced a Farm-In Agreement under which ExxonMobil will acquire a participation interest in the Block 2 concession, located in the northwestern Ionian Sea, near the Italian Exclusive Economic Zone (EEZ).
A farm-in agreement is a contract commonly used in the oil, gas, and mining industries, where one company, known as the farmee, acquires an interest in another company’s (farmor’s) exploration or production license by funding part of the project’s work program, such as drilling or seismic surveys.
According to the terms of the agreement, ExxonMobil will acquire a 60% stake in the Block 2 concession, while Energean’s share will be reduced from 75% to 30%, and HELLENiQ ENERGY’s interest will decrease from 25% to 10%.
Additionally, Energean will continue to serve as the operator during the exploration phase, ensuring continuity in ongoing activities. However, in case of a hydrocarbon discovery, operatorship will transfer to ExxonMobil for the development stage.
Block 2 is regarded as Greece’s most advanced concession in terms of readiness for exploratory drilling, with the consortium expected to make a final decision on commencing drilling activities soon. The completion of the transaction remains pending to obtaining the necessary governmental approvals and fulfilling customary closing requirements.
Subject to the timely issuance of permits and a possible extension of the exploration phase, the first exploratory drilling is anticipated to take place between late 2026 and early 2027.
The operation will mark a significant milestone as the first offshore exploratory drilling conducted in Greece since 1981, when the Katakolo hydrocarbon field was discovered. Over the past 20 years, offshore drilling activity in the country has been limited to production wells in the Prinos field, operated by Energean.
ExxonMobil is actively expanding its presence in Greece’s offshore energy sector through key exploration projects. The company operates the “West of Crete” and “Southwest of Crete” blocks in partnership with HELLENiQ ENERGY, where extensive seismic surveys have been completed to assess hydrocarbon potential.