Exxon Mobil has signed a significant agreement to explore for natural gas off the coast of Greece, marking a strategic expansion of U.S. energy interests in the eastern Mediterranean amid efforts to reduce European reliance on Russian gas. This deal was announced during a conference in Athens, where U.S. Energy Secretary Chris Wright emphasized the opportunity to completely displace Russian gas from Western Europe, thereby impacting Russia’s economic capabilities.
Under the agreement, Exxon will collaborate with Energean and Helleniq Energy to explore Block 2, located offshore Western Greece. John Ardill, Exxon’s vice president of global exploration, noted that this exploration could lead to drilling investments around 2027, with initial drilling expected in late 2026 or early 2027. The project, estimated to require an investment between $50 million and $100 million, aims to produce gas by the early 2030s if all goes as planned.
Greece, which has limited oil production and relies heavily on gas imports, is keen to enhance its role as a conduit for energy to Europe. The gas discovered could supply the Greek domestic market or be integrated into the Trans Adriatic Pipeline (TAP), which transports gas from central Asia to Italy. Exxon will hold a 60% stake in the concession, with Energean owning 30% and Helleniq Energy 10%. Energean will manage the project initially, while Exxon will take over if exploration proves successful.
The agreement is part of a broader U.S. strategy, as Europe committed to purchasing $250 billion annually in U.S. energy resources over the next three years. U.S. officials, including the ambassador to Greece, heralded the deal as a return of American energy interests to the Ionian Sea, reinforcing the U.S. commitment to supporting European energy security.