ACTIVE LICENSING ROUNDS

LICENSING

HEREMA - Upstream Oil and Gas Exploration - Licensing

LICENSING

We believe we can accelerate the development of Greece’s upstream sector, while supporting the drive to net zero carbon by 2050, by attracting best-in-class energy companies.

Exploration and production rights are licensed by HEREMA on behalf of the Greek state on the basis of any of the following procedures:

1

Bidding Round

Launched following an invitation to tender with respect to a specifically defined area, approved by the Ministry of Environment and Energy, published in the Government Gazette, and the Official Journal of the European Union. Offers must be submitted within ninety (90) days from the day of the last publication.

2

Expression of Interest

Launched following an application by any party interested in an area not included in the aforementioned bidding round. If accepted, HEREMA issues the respective tender notice, approved by the Ministry of Environment and Energy, published in the Government Gazette, and the Official Journal of the European Union. Offers must be submitted within ninety (90) days from the day of the last publication.

3

Open Door

When the area of interest is available on a permanent basis, an earlier tender procedure concerning this area was unsuccessful, or the area has been relinquished by the lessee, HEREMA may issue an open-door invitation for declaration of interest. In such case, in a relevant notice published in the Government Gazette and the Official Journal of the European Union, the Minister of Environment and Energy specifies the minimum requirements for the concession, as well as any other relevant information. Interested parties may submit their tenders for a concession in more than one area, and offers must be submitted no later than the last day of the first and second semester of each calendar year.

BID EVALUATION AND CONCESSION AWARDS

The general timeline for any of the three licensing procedures is one to one and a half years from the moment the invitation to tender is published in the Greek Government Gazette. Sealed offers are submitted to HEREMA, who appoints its own Evaluation Committee upon the decision of the company’s Board of Directors.

Further to the Committee’s evaluation, HEREMA proposes the preferred bidder to the Minster of Environment and Energy based on the offer it deems most advantageous to the Greek state.

Once the terms and conditions of the relevant lease agreement have been agreed upon between the parties, the final agreement is submitted to the Court of Audit.Upon the positive approval of the Court of Audit the final draft of the lease agreement is signed by HEREMA, approved by the Minister of Environment and Energy, and sent to the Greek Parliament for ratification. Once concluded, the lease agreement is published in the Greek Government Gazette, thereby constituting a law of the Hellenic Republic.

HEREMA - Upstream Oil And Gas - History of Awarded Licenses

FISCAL REGIME

The fiscal regime in Greece is based on “tax and royalty” lease agreements. Greece provides a competitive corporate tax rate of 20%, with an additional regional tax of 5%. The taxation model is final and has been specifically designed to avoid any additional direct or indirect costs for the investor.

Royalties are agreed between the parties and may be paid in kind (a percentage of the quantity of hydrocarbons produced) or in cash (a percentage of the value of hydrocarbons produced). Lease agreements may also stipulate a signature bonus – paid upon the conclusion of the agreement – a production bonus, and training and surface fees (an annual fee for each acre of the area of exploration or the area of exploitation).

HEREMA - Upstream Oil & Gas Pages
OIL & GAS EXPLORATION

REGULATORY FRAMEWORK

Keep informed about the regulatory framework for exploration and production activities.

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DEVELOPMENT

Learn about the upstream development phase.

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EXPLORATION

Learn about active upstream exploration concessions.

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PRODUCTION

Learn about production licenses and active production fields.

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