|Current and potential companies in Cypriot EEZ (Dec 2016)|
December 15, 2016
The government will next week name the companies with which it will engage in talks with a view to awarding them offshore exploration concessions, energy minister Giorgos Lakkotrypis said on Thursday.
The selection of the preferred bidders does not mean that the same will be awarded the concessions.
A final decision – awarding concessions or not, and for which offshore blocks – is expected around late February.
Cyprus launched its third offshore licensing round in May 2016. Three blocks (6, 8 and 10) have been put up for auction.
Eight energy companies filed six bids for the three offshore blocks as follows: Block 6: ENI/Total; Block 8: ENI, Cairn/Delek; and Block 10: ENI/Total, ExxonMobil/Qatar Petroleum (QP), Statoil.
Oil major Total meanwhile plans to drill its first well in its Block 11 concession – awarded in the second licensing round – during the second quarter of 2017.
Lakkotrypis said there were indications that the size of the target could be as large as the Aphrodite reservoir in Block 12, operated by Noble Energy.
SIGMA LIVE 16.12.2016 07:28
The Republic of Cyprus will announce next week which companies will be granted a licence to launch drilling in Blocks 6, 8 and 10 in the island's Exclusive Economic Zone.
Speaking at an event organised by the Women Entrepreneurs Association, Energy Minister Yiorgos Lakkotrypis said that it is important to define the energy potential of Cyprus as investments to follow will be based on this factor.
Regarding the drilling by TOTAL set to begin in the second quarter of 2017 in Block 11 of Cyprus' EEZ, Lakkotrypis said that it is of great significance because the geological structure is similar to that of the Zhor gas field in Egypt.
The Minister also noted that with constant effort and perseverance, Cyprus has managed to play an important role in the Eastern Mediterranean and Europe as regards energy security.