EU liberalization deadlines in the coming year will require Greece to step up the pace of its privatization plans. Relations between Greece and Turkey have improved in recent months, allowing for discussion of economic and energy cooperation. Greece is a major investor in the reconstruction of the former Yugoslavia. The Balkan states plan to become an increasingly integrated energy market. OIL Greece has limited oil reserves of 10 million barrels.
Oil is imported primarily from Iran and Saudi Arabia.
The Middle East is expected to remain the major source of Greek oil supplies, although Russia could become more important in the coming years. HP conducts oil exploration, imports crude and products, operates two large refineries, and distributes and markets oil products. Although Greece's oil market has been opened to competition, HP continues to dominate the domestic market. Greece's oil production comes from the Prinos area in the Aegean Sea, off the coast of Kavala. Many analysts believe that there is potential for further oil discoveries in Greece, but extensive oil exploration activity has not yet occurred and would require significant foreign investment.