(Adds detail, Energean CEO comments)
ATHENS, March 31 Spain's Repsol has
entered a so-called farm-in agreement with Energean Oil & Gas
for a 60 percent stake in two onshore blocks in western
Greece, Energean Oil said on Friday.
Under a farm-in agreement, an oil and gas company acquires
an interest in a lease owned by another group.
Repsol will become the operator of the Ioannina and
Aitoloakarnania blocks and plans to acquire seismic surveys over
the areas in the 2017-2019 period, Energean said.
Energean, Greece's sole oil producer, holds an exploration
licence in Ioannina and is expected to acquire one for the other
Energean did not disclose the size of the deal, which is
subject to Greek approval.
Energean Chief Executive Officer Mathios Rigas said that the
agreement was a significant step forward for the development of
the Greek oil and gas sector.
"Repsol’s expertise and Energean’s knowledge of the area’s
geology will undoubtedly drive forward the possibility of making
new discoveries in Western Greece," he added.
A consortium led by France's Total signed earlier
this month a deal for deep see gas exploration in one offshore
block in western Greece.
(Reporting by Angeliki Koutantou; editing by Alexander Smith)