sions in late 2013 or early 2014, in
order to bring in the first rigs.
Moreover, in the first quarter of 2013 we
are expecting the completion of the ten-
der for the concession of oil and natural
gas exploration rights on three blocks in
the Gulf of Patras, western Katakolo and
Ioannina. The possibility of the existence
of large hydrocarbon reserves in
Greece, especially in the area south of
Crete and the Ionian Sea, has been cor-
roborated by a report by Germany’s
Deutsche Bank, which estimates the
value of undersea natural gas reserves
at
€
427 billion.
The report cites available geological
surveys, stating that, if these reserves
were actually proven, the gain for the
Greek state would stand at
€
214 billion,
i.e. 107% of the current gross domestic
product.
According to Deutsche Bank, these rev-
enues will start kicking in from 2020,
when Greece’s debt is expected
–according to the set target– to
decrease to 120% of GDP.
Hydrocarbon production usually starts
8-10 years after the deposits have been
verified.
The report reaches this
€
214 billion figure
–i.e. the state’s revenues– on the basis
of the assumption that 25% (of the
€
427
billion) accounts for the cost of extracting
and distributing the natural gas, another
25% represents the companies’ profit
margin, and the remaining 50% repre-
sents the public sector’s revenues.
Deutsche Bank’s report also assesses
the risk borne by foreign investors
regarding the offshore deposits south of
Crete. Thus, in regard to the political cli-
mate, the report states that, if these fig-
ures were confirmed, Greece would
become the 15th largest natural gas
producer in the world, and this would
encourage centrifugal trends in regard
to the country’s European prospects.
Given that foreign hydrocarbon compa-
nies are used to operating in less stable
political environments, business risk is
deemed to be limited.
DEPA -DESFA
Moreover, the completion of the tender
for the sale of DEPA-DESFA is expect-
ed in the first half of 2013.
Trade with Greece
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