I would like to thank the organizers for the opportunity to address such an esteemed audience.

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1 Speech by Mr. Panagiotis Mihalos Secretary General for International Economic Relations Ministry of Foreign Affairs Hellenic Republic EU and the Arab Wold - Athens, May 5, 2014 Excellencies, Ladies and gentlemen, I would like to thank the organizers for the opportunity to address such an esteemed audience. Let me start by stating a fact. In Greece we have been talking about investment from the Arab countries into Greece for at least 3 decades. Despite all the talking and the good intentions from all sides though, there was little result. 1 / 17

2 Nevertheless, together with our Arab partners, during the last two years we are producing concrete results. What was the critical element that redefined our economic relations? Beyond any doubt, the fact that Greece changed drastically and is now one of the most attractive investment destinations in the world. Greece passed through the perfect storm and came out stronger and more competitive. 2 / 17

3 Instead of talking: We corrected state finances in an impressive way, never before achieved by an OECD country, We are changing the model of the Greek economy. Reforms are being implemented in a consistent and persistent way. Indeed, according to the report of OECD Greece ranks first in the pace of reforms for the years 2012 and 2013 The crisis became a catalyst for change. 3 / 17

4 Furthermore, this government started early on to advance and promote its vision for strategic foreign investments in the country. I remind you that the Prime Minster, Antonis Samaras, chose Qatar in January 2013 for his first business oriented visit abroad, which was organized by the Ministry of Foreign Affairs. The 50 largest Greek companies participated in that delegation. More such trips headed by the Prime Minister or the President the Republic followed, giving the sign to the international community that things are changing and that the time for international investors to look into Greece is now. 4 / 17

5 Last January we organized the visit of a 55 member business delegation that I headed to Kuwait. There, the strong interest of Kuwaiti companies, such as the Kuwait Petroleum Corporation, for Greek assets was confirmed. Today and tomorrow we are hosting in Athens the 2 nd Joint Cooperation Committee between Greece and the United Arab Emirates, headed by our Foreign Ministers. It should be noted that most of its agenda is about business and investment promotion. 5 / 17

6 Investment interest from the Arab countries for Greece has been steadily growing. Following the example of the Saudi Aramco, which back in 1996 acquired 50% of major refinery in Greece, Qatar Petroleum International invested in Greece in In its first ever such acquisition abroad, QPI partnered with Terna Energy from Greece. QPI now owns 25% of Greece s most efficient natural gas power plant. The strategic alliance between QPI and Terna involves investments in Greece and the greater South East Europe. 6 / 17

7 I am also very happy to say to you that a major energy deal, which I personally supported in the previous months, will be announced tomorrow here in Athens during the works of our Joint Cooperation Committee with the United Arab Emirates. This new deal will give a further boost in Greece s energy sector and the energy cooperation between the EU and the Arab countries. Another major deal that will be signed tomorrow is the one between Lamda Development from Greece and Al Maabar from the United Arab Emirates. 7 / 17

8 It concerns the development of the former Hellinicon Airport in Athens. This is the largest real estate project in Europe. At least 7 billion Euros will be invested in this project in the coming years. Allow me also to remind you that just one month ago, it was announced that a consortium led by an Abu Dhabi company won the long term contract for the Astir Palace Resort, a prime resort on the coast just 18 kilometers away from here. Ladies and gentlemen, Allow me to focus on energy, which has already become the hot prospect in Greece. 8 / 17

9 The Transadriatic Pipeline (TAP) was the turning point (1,5 bn. private investment, 2000 direct and indirect jobs) We started as an outsider, years later than the competing project, Nabucco, but we worked very hard together with our partners Italy and Albania and secured TAP. We are now planning for a broader vision: The energy security of the region. 9 / 17

10 In the Azeri company SOCAR we found a great business partner, who saw Greece as an equally attractive new business area for investment. SOCAR, made a long-term commitment in Greece with the acquisition of DESFA, the Hellenic Transmission System Operator. However, TAP is just part of how we envisage Greece into the energy landscape of our broader region. The situation in Ukraine has highlighted the need for energy security and diversification, thus our proposal for a Vertical Corridor linking South to North Europe with a twodirection flow. 10 / 17

11 A network of Interconnectors between the national natural gas grids, which will be fed by the pipelines that transport gas from east to west, such as TAP, possibly Eastmed as well as LNG terminals in Greece. This Vertical Corridor will lead from Revythoussa in the Piraeus area all the way up north to Hungary and Ukraine. Why is it the most realistic scenario for natural gas flow and energy security to Central and South-East Europe? Because it is affordable and can be very realistically accomplished. It does not require a huge new investment, which would take years to put together. 11 / 17

12 The Vertical Corridor consists of the following parts: 1. The national natural gas grids of the countries involved. These are already mostly in place. 2. The Interconnectors linking the national grids to one another. Some of the interconnectors already exist, some have to be constructed. But in any case, these are rather smaller scale projects, especially when compared to the energy projects we are used to deal with. The Interconnector Greece-Bulgaria (IGB) is a mature project. We are reaching the final investment decision this year and by the end of 2016 the project will be 12 / 17

13 operational. We are very strongly committed to it, and 3. New inlets to this system. Greece offers three. The first one is Revythoussa. This is the existing LNG terminal, with a significant excess capacity for regasification, which in 2016 will reach 6 bcm/yr. The Greek LNG terminal is already here and operational, in stark contrast to other projects of similar scale currently under consideration. The second inlet will be a floating LNG terminal in northern Greece, which will be linked to Greece s national grid and provide additional quantities, and 13 / 17

14 TAP, the Transadriatic. At its second phase of development, TAP will be contributing additional volumes to the Vertical Corridor. The combination of the Vertical Corridor with TAP and the Greek LNG terminals will provide energy security for Central and South-Eastern Europe before the end of this decade. The Vertical Corridor will be a new significant pipeline transporting natural gas from the Arab countries, among other sources, to the European market. Now, that the situation in Ukraine is becoming more uncertain, the issue of energy security in 14 / 17

15 Europe has become more vital and urgent than ever and demands our action. In this picture, one should add recent developments regarding newly found reserves in the Eastern Mediterranean, in Israel and Cyprus. As you know, the options regarding possible transit routes are still open. Allow me to mention at this point that 80% of crude oil and 30% of international natural gas trade is done by ship. Greek ship owners are already commanding, as you know, a large fleet of tankers carrying oil around the world. We expect that the Greek shipping community will keep increasing its share regarding LNG ships. 15 / 17

16 Just days ago, Nakilat, which is the largest LNG ship owner in the world, and by 50% belongs to the State of Qatar, announced that partnering with a Greek shipping company, Maran Maritime, will build 3 additional LNG carriers. The two companies already run a joint company owning 11 LNG carriers. I mentioned the basic parameters that give shape to a greater energy vision for Greece and the entire Central and South-Eastern Europe. These parameters is what we believe will transform Greece into an energy hub. In closing, 16 / 17

17 Energy is an important area for economic growth and prosperity for the people of the region. Now more than ever, Central and Southeastern Europe need a future with a stable political and economic environment. Through energy it is within reach. The Vertical Corridor and the other energy developments will contribute to the prosperity of the region for decades to come. I wish you the best of luck in your endeavors. Thank you for your attention. 17 / 17

DEPA. Participations. Trading Activities. DESFA S.A. EDA S.A. IGI Poseidon S.A. Thessaloniki EPA. Eni

DEPA. Participations. Trading Activities. DESFA S.A. EDA S.A. IGI Poseidon S.A. Thessaloniki EPA. Eni Hellenic-Bulgarian Cooperation in the Energy Sector Sofia, April 29 th 2010 Meeting the gas supply challenges in the Balkans and SE Europe Spiros Paleoyannis Vice Chairman & Deputy CEO, DEPA S.A. An event