Licences for ENI and Total to explore block seven

The cabinet on Monday licensed energy companies ENI and Total to explore block seven of Cyprus’ exclusive economic zone (EEZ) and approved a partnership between the two in five other blocks.

The cabinet also approved nine other drills inside the EEZ within the next couple of years.

Block seven neighbours the Calypso field in block six where ENI carried out an exploratory drill early in 2018 and is believed to hold between six and eight trillion cubic feet.

Total and ENI had applied for an exploration licence in block seven back in November 2018.

The joint projects include block three where in February 2018 Turkish warships prevented an ENI drillship from carrying out a drill.

Ankara has repeatedly warned Cyprus against taking “unilateral steps” in exploring and developing hydrocarbons without factoring in the Turkish Cypriots.

In September 2001, Turkey and the north signed a ‘continental shelf delineation agreement’.

Turkey’s claims on the island’s EEZ partly overlap with Cyprus’ blocks 1, 4, 6 and 7. Ankara also supports the north’s claims on blocks 1, 2, 3, 8, 9, 12 and 13, including within few kilometres from the Aphrodite gas field.

Turkey is currently carrying out exploration west and east of Cyprus, prompting protests.

Source

Lakkotrypis Minister Exxon

MPs welcome news of gas find

Lawmakers on Tuesday sounded optimistic about ExxonMobil’s recent discovery of natural gas offshore Cyprus, some opining that the find could put the island back on the energy map.

MPs were given a behind-closed-doors briefing by Energy Minister Giorgos Lakkotrypis and head of ExxonMobil Cyprus Varnavas Theodosiou.

Speaking to reporters later, MP and chair of the House energy committee Andreas Kyprianou said the briefing confirmed “the very important results, especially optimistic for the Republic of Cyprus both in terms of energy and geopolitics.”

Last week Exxon announced a gas find of 5-8 trillion cubic feet (tcf) in an offshore field inside Block 10 of the island’s exclusive economic zone (EEZ). The discovery re-ignited talk of construction of a liquefied natural gas facility on the island, although more quantities of gas would be needed.

According to the information given to MPs, the US oil and gas giant is considering further drilling in the EEZ, within Block 10 and possibly in other licensed acreages.

“The signs are encouraging,” said Diko MP Angelos Votsis.

“Most importantly, ExxonMobil are here to stay, and their interest in the Cypriot EEZ remains strong.”

The recent discovery boosts prospects of having an LNG plant in Cyprus, although this would take years and depended on additional gas discoveries, Votsis added.

For it to be viable, an LNG plant would require a capacity of 10 to 15 tcf. The 5 to 8 tcf discovered in Block 10 falls well short of that, but Exxon have intimated they will continue their search for gas.

For his part, Akel’s Costas Costa welcomed the discovery but said that at the same time it puts the onus on the government to develop a coherent and consistent energy policy.

The Akel deputy also asked the energy minister for an update on the talks between Cyprus and Israel regarding the commercial development of the Aphrodite gas reservoir in Block 12.

A small part of the reservoir is said to lie within Israel’s EEZ. The companies involved on either side have thus far not reached agreement on how to divvy up the resources.

According to Costa, Lakkotrypis said only that negotiations with Israel are ongoing.

The energy minister was also asked about the state of play in the talks between the government and the companies holding the concession on the Aphrodite field (Noble, Delek and Shell).

The companies are reportedly seeking to amend the production-sharing contract they signed with the government.

Lakkotrypis told MPs that discussions on this are continuing and that an outcome should be expected “soon.”

Source: Cyprus Mail

TOTAL FOR BLOCK 8 OF CYPRUS

TOTAL may expand presence into block 8

French energy giant Total, wants to expand its presence into block 8 of Cyprus’ exclusive economic zone (EEZ) Energy Minister Yiorgos Lakkotrypis said on Monday.

Speaking to reporters at the presidential palace after the meeting between President Nicos Anastasiades and the Regional Director of Total, Stephane Michel, Lakkotrypis said the discussion had been constructive. “The next steps in the exploration programme were discussed and one of the most important issues was the interest by Total in participating in block 8,” he said.

Block 8 was licensed to Italy’s ENI and “now we see interest by the French company to grow in this segment. It is a very important development that strengthens the [ENI-Total] consortium and expand its presence in Cyprus’ EEZ,” Lakkotrypis added. The consortium has 50 per cent stake each in blocks 6 and 11.
Michel, who is in charge of production and research activities in the Middle East region, echoed the minister saying: “We applied as well to enter block 8 owned by ENI and wanted to come to support that demand which is currently being examined by the Minister,” he said.

He did not give any further information on the share that the French company wished to acquire in block 8 or on the timetable for confirmation drilling in Calypso field in block 6.

Asked about Calypso, Lakkotrypis said the consortium’s work was continuing there but the government planned to secure an independent assessment of quantities in the field.

In February, ENI announced that it made a discovery of lean gas after drilling an exploratory well at Calypso. The company said it believed the gas play to hold around 6 to 8 trillion cubic feet.

“We discussed the next steps. We are not ready yet to say anything. We are in discussions on other issues, which will be announced as they develop,” he said.

Michel, asked if the company would proceed with confirmatory drilling in Calypso, said there was a lot of technical work to be done before this happened. He said so far results had come only from the first borehole and noted there would certainly be confirmatory drilling.

To another media question, Lakkotrypis referred to the navy blockade imposed by Turkey on ENI’s drillship in February this year, which prevented it from carrying out its work in block 3, the minister said: “After everything had occurred in Block 3, what we see is that one of the most important partners of the Republic wants to expand its presence in our EEZ, especially in a field such as block 8 which is largely still unexplored.” He said 3D surveys had already been carried out in block 8. “They are currently being processed to determine targets,” he said.
Turkey has repeatedly warned Cyprus against taking “unilateral steps” in exploring and developing hydrocarbons without factoring in the Turkish Cypriots with whom Ankara signed a ‘continental shelf delineation agreement’ in 2001.

Turkey’s claims on the island’s EEZ partly overlap with Cyprus’ blocks 1, 4, 6 and 7. Ankara also supports the north’s claims on blocks 1, 2, 3, 8, 9, 12 and 13, including within few kilometres from the Aphrodite gas field in block12.

Source: Cyprus Mail