Greece’s parliament is expected within the week to approve lease agreements between the Greek state and a consortium formed by Chevron and HELLENiQ ENERGY for the exploration and potential exploitation of hydrocarbons in four offshore areas in the eastern Mediterranean. The blocks, located south of Crete and the Peloponnese and designated “A2,” “South of the Peloponnese,” “South of Crete 1,” and “South of Crete 2,” will gain legal force once the agreements are ratified and published in the Government Gazette, allowing the companies to begin exploration activities.
According to Greece’s environment and energy minister, Stavros Papastavrou, the project could help pave the way for the country to become a producer of natural gas by 2032 and broaden its energy mix. The contracts follow an international tender process that unfolded amid significant geopolitical tension in the region. Between March and September 2025, Libya and Turkey took diplomatic and political steps aimed at obstructing or undermining the Greek tender, aware that its success would challenge the maritime claims embedded in the 2019 Turkey-Libya maritime memorandum and Ankara’s broader “Blue Homeland” doctrine. Despite the pressure, Chevron maintained its interest, ultimately winning the tender and signing the agreements.
The areas south of Crete lie opposite Libya’s coastline, placing the project within a complex geopolitical setting. Libya, backed by Turkey, argues that Greek islands should not generate full maritime zones such as continental shelf or exclusive economic zone (EEZ) rights. This interpretation conflicts with the United Nations Convention on the Law of the Sea, which grants inhabited islands the same maritime rights as mainland coasts. Through the Turkey-Libya agreement, Tripoli claims a large portion of the seabed south of Crete, including areas overlapping with the newly awarded blocks.
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Despite speculation about major hydrocarbon discoveries, experts caution that it is far too early to draw conclusions. The offshore regions in question remain largely unexplored from a geological standpoint. While there are indications suggesting the possible presence of hydrocarbons, no confirmed discoveries exist. Extensive seismic surveys and exploratory drilling will be required before any reserves can be verified. The waters south of Crete are extremely deep and geologically complex, meaning exploration will involve high costs and long timelines. The first exploratory drilling alone is expected to exceed €100 million, entirely funded by the companies involved, and could take several years to materialize. Commercial production, if hydrocarbons are eventually found, would likely take close to a decade.
Chevron’s participation is nevertheless considered strategically significant for Greece. Large energy companies typically avoid operating in areas that are strongly contested by third parties. By proceeding with the project, Chevron effectively recognizes Greece’s jurisdiction in the concession zones, extending to the median line between Crete and Libya.
For Athens, this represents a practical affirmation of its maritime rights in the eastern Mediterranean.
The agreements have also drawn criticism from some commentators in Greece, who claim that certain clauses could allow future concessions of sovereign rights. In reality, the provision in question allows the boundaries of the concession areas to be adjusted if Greece reaches a maritime delimitation agreement with a neighboring state. In such a case, any portion of the licensed area found to lie outside Greece’s continental shelf or EEZ would automatically be removed from the concession without compensation claims from the contractor. The clause is intended to protect the Greek state from future legal disputes should maritime boundaries be formally defined through international agreements.
Negotiations between Greece and Libya on maritime delimitation have recently resumed, raising the possibility that some boundaries could eventually be revised. Any adjustment would likely involve only a small portion of the southern concession area. For Greece, however, the broader significance of the Chevron agreement lies less in immediate energy prospects and more in its geopolitical implications, as it reinforces the country’s position in a contested region of the eastern Mediterranean.
