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1st East Med Energy Leadership Summit - Yannis Grigoriou

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Yannis Grigoriou, CEO, Hellenic Petroleum Upstream S.A.

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1st East Med Energy Leadership Summit - Yannis Grigoriou

  1. 1. Exploring for hydrocarbons across Mediterranean. A new challenging era is rising up! A presentation prepared for the First Annual Eastern Mediterranean Energy Leadership Summit 1st October 2019 Yannis Grigoriou Hellenic Petroleum Upstream SA CEO
  2. 2. Exploring for hydrocarbons across Mediterranean. A new challenging era is rising up! I. Hellenic Petroleum SA ▪ corporate data ▪ upstream strategy ▪ exploring around Mediterranean countries II. E – SE Med hydrocarbon potential … III. … some current geopolitical aspects IV. and lessons learnt from the past
  3. 3. The leading Greek integrated energy group, listed in Athens Stock Exchange implementing long term strategy fully supported by the controlling shareholders and adopting strict Code of Ethics and Corporate Governance criteria 3
  4. 4. A leading energy group with activities across the energy value chain in Greece and the SEE and Med region 4 Refining, Supply & Trading Exploration & Production Domestic Marketing International Marketing Petrochemicals Power & Gas DESCRIPTION METRICS • Exploration assets in Greece • Patraikos Gulf (HELPE-Operator, 50% & Edison, 50%) • Sea of Thrace (HELPE 25%, Calfrac Well Services 75%) • Complex (recently upgraded) refining system: – Aspropyrgos (FCC, 148kbpd) – Elefsina (HDC, 100kbpd) – Thessaloniki (HS, 93kbpd) • Pipeline fed refinery/terminal in FYROM • Capacity: 16MT • NCI: 9.6 • Market share: 65% • Tankage: 7m M3 • Basel technology PP production (integrated with refining) and trading • > 60% exports in the Med basin • Capacity (PP): 220 kt • Leading position in all market channels (Retail, Commercial, Aviation, Bunkering) through EKO and HF (BP branded network) • c.1,700 petrol stations • 30% market share • Sales volumes: 3.5MT • Strong position in Cyprus, Montenegro, Serbia, Bulgaria, FYROM • Advantage on supply chain/vertical integration • c.290 petrol stations • Sales volumes: 1.2MT • ELPEDISON: Second largest IPP in Greece (JV with Edison/EdF) • Capacity: 810 MW (CCGT) • DEPA/DESFA GROUP: 35% in Greece’s incumbent NatGas supply company (DESFA in sale process) • Volumes (2015): 3.0bcm
  5. 5. BULGARIA GREECE CYPRUS SERBIA FYROM EGYPT LIBYA TUNISIA MONTENEGRO Refinery Retail & Marketing Exploration & Production Power & Gas Solid performance on the back of recent investments and continuous improvement initiatives 5
  6. 6. 6 Hellenic explored extensively the country ➢ The Greek State awarded to Hellenic exclusive rights for E&P activities in 26 oil promising blocks (1975 – 2007) , while audited and overviewed Prinos area operations, still in production by Energean ➢ Hellenic, been operator, explored the country ▪ with extensive geological & geophysical studies ▪ acquiring 63.000 km onshore & offshore seismic data ▪ drilling 75 wells ▪ discovering marginal oil and gas fields EpanomiKatakolo 45 years operations with zero environmental footprint Proven working petroleum system both offshore and onshore
  7. 7. 7 International activities of Hellenic in Ε&P Participation in numeous international rounds mainly in MMEA area in Joint Ventures with Total, ExxonMobil, Repsol, Edison, Woodside, Statoil, OMV, Enel, GDF Suez, Lukoil, JAPEX, Kuwait Energy etc. Last years ELPE invested in international exploration activities, more than $ 220 millions, drilling 34 wells and discovering c. 200 million barrels as operator or participating in JVs ▪ Albania: 3 blocks ( 49% JV with OMV) ▪ Libya: 6 blocks (20% in JV with Woodside και Repsol) ▪ Egypt: 2 blocks (W. Obayed 30% in JV with Vegas and Mesaha 30% in JV with Petroceltic, Kuwait Energy and Beach) ▪ Montenegro: 3 blocks (following the acquisition of the local company JPK) 7
  8. 8. 8 The existing Greek legal and fiscal regime is competitive Source: IHS PEPS Report 3Q 2019 Fiscal regime: Greece is ranked 7th amongst 130 countries 3.95 8.24 7.55 4.42 4.49 7.45 8.21 8.77 6.24 8.11 2.83 2.32 5.59 8.50 5.75 5.29 4.76 2.12 4.48 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 Greece - Fiscal Rating
  9. 9. 9 Political stability with low risk in a safe EU country Source: IHS PEPS Report 3Q 2019 Political risk: Greece is ranked 41rd amongst 130 countries 8.45 8.46 7.09 6.45 7.74 5.92 8.38 7.46 7.42 6.97 5.70 3.04 7.05 6.76 6.56 8.46 7.09 2.33 5.03 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 Greece - Political Risk Rating
  10. 10. 10 Greek E&P sector as a pillar for growth building a promising portfolio of blocks partnering with major oil companies
  11. 11. 2012
  12. 12. 2012
  13. 13. 2012 -2014 Open door
  14. 14. 2015 Onshore round
  15. 15. 2016 2017
  16. 16. 4Q 2019 10 blocks
  17. 17. Understand 17 Evolve Energise The market environments, the competitive fiscal terms, the existing opportunities combined with the geological risks in the greater area of SE Europe and Mediterranean compelled us to better that our strategy for growth should be adopted to and reformulate our portfolio, focusing in Greece, where our commercial and technical competitive advantages are strong We are energized by our position now, while our excellent progress against our strategy leaves us in a confident position for the years ahead.
  18. 18. 2012
  19. 19. 4Q 2019 10 blocks
  20. 20. 22 Apoulian Platform Mediterranean Ridge Inner Plateau Thrace Basin Herodotus ? Nile Delta Western Dessert Levantine Basin EM Gulf of Suez Huge offshore deep water areas are still practically unexplored Greece’s hydrocarbons potential is extremely promising Hydrates? Promising known geological targets never drilled so far (i.e. deep targets below Triassic evaporites in W. Greece)
  21. 21. ➢ Following an open door international tender the Greek State on October 2014 awarded exclusive exploration and production rights to the business scheme of ▪ Hellenic Petroleum (50%, operator) and ▪ Edison International (50%) ➢ Following an extensive exploration work program during the 1st exploration phase (geological and geochemical studies and dual azimuth 3D seismic data.) numerous targets are mapped ➢ The most promising prospect (Echo) will be drilled 1H20 with the environmental studies to completed within the next months Lease Agreement of W. Patraikos Gulf 23
  22. 22. Patraikos lease: Prospect ECHO Pmean 140 MMbbls
  23. 23. 25 E - SE Med hydrocarbons resources: a rising global energy star ➢ Several options exist to monetise & transport hydrocarbons from the current and potentially producing countries (Egypt, Israel, Cyprus, Lebanon, Greece etc) to consumers (local markets, Europe and Asian market etc) ▪ EastMed pipeline to European market ▪ pipe to European market, using TANAP /TAP chain ▪ existing Egypt LNG ▪ New LNG in Cyprus ▪ New and existing pipes to nearby local markets
  24. 24. 26 Stability Peace Prosperity E - SE Med hydrocarbons resources for stability, peace and prosperity of the countries in the area ➢ The only viable solution requires all neighboring and all involved countries in the area and the stakeholders must, without terms and asterisks, to: ▪ Comply and keep International Laws and Treaties ▪ Fully respect the borders and EEZ of each country and ▪ Honor the existing decisions of the United Nations

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