Tuesday, 9 August 2011 - 16:25
The New Oil Exploration Map In Greece
The Hellenic Hydrocarbon Resources Management SA (EDEY) is expected to be announced by October. It would take over on behalf of the Greek State the management of exclusive rights for the exploration and exploitation of hydrocarbons. The new institutional framework creates expectations that tenders would be launched soon after decades of immobility regarding investment in research and production of oil and gas in Greece.
Under the new law, the company would have share capital of €1million and would be managed by a seven-member board of directors, which would be appointed by the Ministry of Environment, Energy and Climate Change after notice. Three members (president, vice-president and CEO) would be selected by the cabinet after the parliamentary committee on institutions and transparency has expressed its opinion. The service would have five-year duration.
The new company would primarily manage and monitor the existing state agreements, assess the potential of the country and plan the awarding of new explorations. It would also manage old data, grant licenses for exploration of hydrocarbons and conduct the relevant renders. In addition, it would negotiate the contract terms and monitor the proper implementation.
The company may well receive subsidies from the government, but it would seek to receive funds through disposal of assets and data as main revenue.
Under the new law, EDEY would manage all types of data files generated by research and production processes. The new law requires that the old data could be granted to the company after a decision of the Energy Minister for storage, management and development.
The law defines that the underwater areas are the seabed and subsoil of inland waters, territorial sea, continental shelf and exclusive economic zone to a distance of 200 miles. It also provides that in the absence of an agreement with neighbouring states, the outer limit of the continental shelf and exclusive economic zone is considered the median line.
The new company would grant 18-month licenses for surveys in specific areas that do not exceed 4,000 square km onshore and 20,000 square km in the sea. The concession right for the exploration and exploitation would be implemented in three way: announcement of tenders, request of an interested investor, open door invitation for expression of interest.
The contractor is subject to income tax of 20% and regional tax of 5%, without any additional regular or special levy.