Greece set to restart offshore gas drilling in the Ionian Sea, targeting Block 2

Greece is preparing to restart offshore gas exploration in the Ionian Sea after nearly four decades of inactivity, a move that could reshape the country’s long-term energy outlook if results justify further spending. The initiative matters for investors because it combines a potentially large resource target with clear execution and commercial risks typical of frontier offshore work.

Drilling contract and consortium structure

The next phase was initiated through the signing of a drilling contract involving a consortium led by ExxonMobil, alongside Energean and Helleniq Energy, with Stena Drilling partnering in the effort. The campaign will focus on Block 2 in the northwestern Ionian basin, where geological surveys point to the possible presence of significant natural gas reserves.

First target: Asopos 1 in early 2027

Authorities have identified the Asopos 1 prospect as the first drilling target. Operations are scheduled to begin in early 2027, marking a concrete timeline for what has been largely absent from Greece’s offshore activity for decades.

Resource estimates and upfront cost

Industry estimates suggest the area could contain up to 270 billion cubic meters of natural gas—well above Greece’s current annual consumption—though stakeholders stress that exploration outcomes remain uncertain. The planned well is expected to reach depths of more than 4,600 meters and is projected to require investment of 60–70 million euros.

What happens after discovery

Even if a discovery is made, stakeholders note that large-scale development would likely require additional investment of up to 5 billion euros. That could translate into substantial long-term state revenues if production economics hold, but commercial viability has not yet been confirmed.

Regional implications

Officials and international partners have framed the project as part of broader energy cooperation efforts. Beyond potential benefits for Greece’s domestic supply security, it is also positioned as having implications for wider regional energy stability—depending on whether exploration results support further development decisions.