The evolution of the Greek upstream regulatory framework and thoughts on further development

Transcription

1 East Mediterranean Energy Law Forum Athens, 8 December 2017 The evolution of the Greek upstream regulatory framework and thoughts on further development Dorina Papadimitriou Advocate Director, Group International Business Activities & Financial Services Legal Division 1

2 Agenda The milestones of the legal regime The enduring policies of the Greek regime The new policies introduced by the Licensing Directive The current regime The Contract Type International Rounds Lessons Learned Conclusions 2

3 The milestones of the legal regime The Early Years Texaco 1968, Ada Oil Exploration Corporation 1969, An Car 1970, Oceanic 1970 Law 98/1975, in force for the Exploration Area of the Sea of Thrace (Calfrac 75% Hellenic Petroleum 25%) 1976 The State Owned Company Era Law 468/1976 for the exploration and exploitation of hydrocarbons 1995 The Licensing Directive Directive 1994/22 EC regarding the conditions on granting and using authorizations for the prospection, exploration and production of hydrocarbons (the Licensing Directive) Law 2289/1995 for the prospecting exploration and exploitation of hydrocarbons 2011 The New Era Law 4001/2011 incorporation of Hellenic Hydrocarbon Resources Management SA 3

4 The enduring policies of the Greek regime (1/2) Law 468/1975 included important provisions which set the base of the Greek State s policy over hydrocarbons and have been adopted by Law 2289/1995 : The Greek State s ownership rights over the hydrocarbons resources The authorizations granted by the Greek State, being: - Prospecting - Exploration & Exploitation 4

5 The enduring policies of the Greek regime (2/2) Regarding the type of the contract for granting exploration and exploitation rights Law 468/1976 included both options of the two internationally known types of contracts, being: Τhe Production Sharing The Royalty/Τax system, referred in the Law as Lease Agreement The final decision for the use of each type of contract is left to the competent Minister in charge from time to time. 5

6 The new policies introduced by the Licensing Directive (1/2) Mandatory public tender process The Call for Tenders is published : - In the Government Gazette - In the EU Journal The process commences : - By the initiative of the authority, or - following the application of an interested party Open door process 6

7 The new policies introduced by the Licensing Directive (2/2) Mandatory tenders process The call for tenders must clearly set : - The points of competition - The selection criteria 7

8 The current regime The surviving provisions Law 2289/1995 maintained a good number or Law 468/1975 provisions. Among the surviving provisions are: - the definitions of the Law - the contractual terms of the Lease Agreement and the Production Sharing Agreement - the Exploration Stage - the Exploitation Stage - the rights and obligations of the contractors - the assignment of contractors rights - the income tax 8

9 The Contract Type Since 1996 the Royalty/Tax agreement (Lease Agreement), was chosen as the most appropriate by the State. Format and content of the Lease Agreement are based in older regime - PD 193/1979 Lease Agreement format, - PD 127/1996 regarding the Lease Agreement provisions - Lease Agreement Models 9

10 International Rounds (1/5) Five (5) international Rounds under Law 2289/ Round launched by DEP EKY Lease Agreements entered between DEP EKY of behalf of the State and i) Triton for the onshore area of NW Peloponese, ii) Triton for the onshore area of Aitoloakarnania, iii) Enterprice Oil for the onshore area of Ioannina iv) Enterprise Oil for the offshore area of West Patraikos Golf, all ratified by the competent Minister. 10

11 International Rounds (2/5) 2012 Open Door International Round Lease Agreements entered between the State and i) Energean Oil and Gas and Trajan Oil for the offshore Katacolo area, ratified by the Law 4298/2014, ii) iii) Hellenic Petroleum, Edison International SpA and Petroceltic Resources Plc for the offshore West Patraikos Golf, ratified by Law 4299/2014, Energean Oil and Gas and Petra Petroleum Inc for the onshore Ioannina area, ratified by Law 4300/

12 International Rounds (3/5) 2014 International Round following the application of an interested party Lease Agreements entered between the State and i. Hellenic Petroleum for the onshore area of Arta-Preveza, ii. iii. Hellenic Petroleum the onshore area of NW Peloponese, Energean Oil and Gas for the onshore area of Aitoloakarnania, Ratification process by the Greek Parliament is pending. 12

13 International Rounds (4/5) 2014 International Round on the initiative of the State - Lease Agreement entered between the State and Total, Edison and Hellenic Petroleum consortium as Contractor for Block 2 of the Ionian Sea. The agreement is expected to be ratified shortly by the Hellenic Parliament. - Hellenic Petroleum has been declared as the preferred bidder for Block 10 of the Ionian Sea. 13

14 International Rounds (5/5) 2017 International Round following the application of an interested party In 2017 HHRM, acting for the Hellenic Republic, launched an international round for: - two (2) Offshore areas North West and West of Crete following an application filed by Total, Exxon Mobil and Hellenic Petroleum, and - for one (1) offshore area in the Ionian Sea following an application filed by Energean Oil and Gas. The Call for Tenders has been published in the Government Gazette and also recently in the EU Journal and the 90 days period for submitting the offers is now running. 14

15 Lessons Learned Harmonization of the regime with the international practices of industry in certain areas, included but not limited to: Joint Venture Tax Unitization Updating references 15

16 Conclusions Successful implementation of the Law 2289/1995 Room for improvements in order to - to update the regime in accordance with the international practice, - to mitigate legal risks The Lease Agreements entered so far should be used as a tool for the necessary reformation of the regime 16

17 Thank you for your attention! 17