Energy giants Total and Eni have submitted a joint bid for another license to explore and exploit oil and gas offshore Cyprus despite warnings from Turkey, Cypriot authorities said Monday.
In October, Cyprus decided to invite France’s Total, Italy’s Eni and ExxonMobil to bid for unclaimed block 7 of its exclusive Economic Zone (EEZ).
“An application was received on November 26, as part of the procedure for a Hydrocarbon Exploration License for Block 7, by Total / Eni,” said a Cyprus Energy Ministry statement on Monday.
“In the coming days, the application will be examined by the Advisory Committee, which will prepare an Introductory Report for the Minister for Energy. Subsequently, the Minister will present a proposal to the Council of Ministers, where the relevant decisions will be taken,” it added.
Last month, Cypriot Energy Minister George Lakkotrypis said that, due to its geology, firms have expressed an interest in block 7 and so it was decided to invite companies, that already have licences in neighbouring offshore blocks, to express an interest.
He said the process would be similar to the previous licensing round and would involve those companies awarded licenses in blocks 6 (ENI & Total), 8 (ENI), 10 (ExxonMobil) and 11 (Total & ENI) of Cyprus’ EEZ.
Nicosia decided to proceed with exploiting block 7 due to “very specific geological reasons” that have to do with preliminary a discovery in block 6 of Cyprus’ EEZ, announced by ENI in February.
ENI is the operator of Block 6 with a 50% participation interest and Total has the other 50%.
The Calypso field is considered by ENI to be a promising gas discovery that confirms the extension of the “Zohr like” play in the Cyprus blocks.
Turkey has reacted angrily to the decision by Nicosia to invite energy players Total, ENI and ExxonMobil to exploit block 7.
In a statement last month, the Turkish Foreign Ministry advised “companies that might be interested in participating in the tender to act with common sense and to duly consider the realities on the ground”.
Ankara claims that an “important segment” of block 7 “remains within the outer limits of Turkey's continental shelf in the Eastern Mediterranean”.
Turkey said it will continue to take all the necessary measures to protect its rights and will not allow any third party to conduct exploratory activities for the development of hydrocarbon fields in the region.
Cyprus has pushed ahead with exploring for offshore energy resources despite the collapse in 2017 of talks to end the country's decades-long division.
That has angered neighbouring Turkey, which has had troops stationed in the country since 1974, when it invaded and occupied its northern third in response to a coup sponsored by the military junta then ruling Greece.
Turkish President Recep Tayyip Erdogan has also warned foreign energy companies not to "overstep the mark" in disputed waters off the coast of the divided island.
Earlier this month, ExxonMobil began test drilling for hydrocarbons offshore Cyprus despite Turkey warning international firms against such moves.
Texas-based Noble Energy in 2011 made the first discovery off Cyprus in the Aphrodite block estimated to contain around 4.5 trillion cubic feet of gas – it has yet to be commercialised.
The discovery of nearby Egypt’s huge Zohr offshore reservoir in 2015 has stoked interest that Cypriot waters hold the same riches.
Cyprus aims for natural gas to start flowing to Egypt’s LNG facility in 2022, therefore generating its first revenue from natural gas in the same year.
SOURCE
In October, Cyprus decided to invite France’s Total, Italy’s Eni and ExxonMobil to bid for unclaimed block 7 of its exclusive Economic Zone (EEZ).
“An application was received on November 26, as part of the procedure for a Hydrocarbon Exploration License for Block 7, by Total / Eni,” said a Cyprus Energy Ministry statement on Monday.
“In the coming days, the application will be examined by the Advisory Committee, which will prepare an Introductory Report for the Minister for Energy. Subsequently, the Minister will present a proposal to the Council of Ministers, where the relevant decisions will be taken,” it added.
Last month, Cypriot Energy Minister George Lakkotrypis said that, due to its geology, firms have expressed an interest in block 7 and so it was decided to invite companies, that already have licences in neighbouring offshore blocks, to express an interest.
He said the process would be similar to the previous licensing round and would involve those companies awarded licenses in blocks 6 (ENI & Total), 8 (ENI), 10 (ExxonMobil) and 11 (Total & ENI) of Cyprus’ EEZ.
Nicosia decided to proceed with exploiting block 7 due to “very specific geological reasons” that have to do with preliminary a discovery in block 6 of Cyprus’ EEZ, announced by ENI in February.
ENI is the operator of Block 6 with a 50% participation interest and Total has the other 50%.
The Calypso field is considered by ENI to be a promising gas discovery that confirms the extension of the “Zohr like” play in the Cyprus blocks.
Turkey has reacted angrily to the decision by Nicosia to invite energy players Total, ENI and ExxonMobil to exploit block 7.
In a statement last month, the Turkish Foreign Ministry advised “companies that might be interested in participating in the tender to act with common sense and to duly consider the realities on the ground”.
Ankara claims that an “important segment” of block 7 “remains within the outer limits of Turkey's continental shelf in the Eastern Mediterranean”.
Turkey said it will continue to take all the necessary measures to protect its rights and will not allow any third party to conduct exploratory activities for the development of hydrocarbon fields in the region.
Cyprus has pushed ahead with exploring for offshore energy resources despite the collapse in 2017 of talks to end the country's decades-long division.
That has angered neighbouring Turkey, which has had troops stationed in the country since 1974, when it invaded and occupied its northern third in response to a coup sponsored by the military junta then ruling Greece.
Turkish President Recep Tayyip Erdogan has also warned foreign energy companies not to "overstep the mark" in disputed waters off the coast of the divided island.
Earlier this month, ExxonMobil began test drilling for hydrocarbons offshore Cyprus despite Turkey warning international firms against such moves.
Texas-based Noble Energy in 2011 made the first discovery off Cyprus in the Aphrodite block estimated to contain around 4.5 trillion cubic feet of gas – it has yet to be commercialised.
The discovery of nearby Egypt’s huge Zohr offshore reservoir in 2015 has stoked interest that Cypriot waters hold the same riches.
Cyprus aims for natural gas to start flowing to Egypt’s LNG facility in 2022, therefore generating its first revenue from natural gas in the same year.
SOURCE
