A multi-billion-dollar revised development and production plan for exploiting the Aphrodite gas field within six years is expected to be received by the government within days, said Energy Minister Giorgos Lakkotrypis.
According to the timeframes given by the consortium, the gas field is expected to produce natural gas by 2025.
Cyprus expects to earn $9.3 bln over 18 years from exploiting its Aphrodite gas field after Nicosia renegotiated the contract in June.
A re-working of the production contract ensures Nicosia receives an average yearly income of 520 million dollars over the lifespan of the gas field. The figures are based on the average price of oil being around $70 a barrel.
Previously the consortium - Texas-based Noble Energy, which is the operator, British-Dutch giant Shell and Israel’s Delek - had no obligation to stick to a timeline, now natural gas is expected to flow from Aphrodite and be pumped to Egypt via a pipeline.
A second confirmatory drill will be conducted to ascertain the exact size of the reservoir.
“It is intended for a second confirmatory drill to take place in the Aphrodite gas field which will show us with greater precision the quantities of natural gas that can be exploited,” said Lakkotrypis who gave no timeline for the drill.
Shell officials were received by President Nicos Anastasiades on Tuesday at the Presidential Palace to discuss energy plans.
“Shell Executive Vice President Venter De La Rei has taken over the region’s portfolio and it was the first opportunity for him to meet Anastasiades to discuss developments both in the region and Cyprus,” said Lakkotrypis.
He said efforts to commercially exploit Aphrodite gas interests Shell from two different points of view -- as part of the consortium exploiting Cyprus’ EEZ and as co-operator of the LNG terminal in Idku, Egypt where the natural gas is intended for.
“An exchange of views took place as to how we can move forward with the gas field’s exploitation as quickly as possible,” said Lakkotrypis.
The government is in consultation with the consortium on the development and production plan.
“We expect to receive a new version of the plan in the coming days,” said Lakkotrypis.
Once the production and revenue sharing contract is approved by cabinet then an exploitation license will be issued for the project to go ahead, said Lakkotrypis.
He said the consortium has presented a timeframe of 2025 for natural gas production.
On whether the Egyptian LNG terminal will wait for Aphrodite gas, the minister said, “since changes that need to be made at Idku are under discussion, we believe the answer is yes”.
Lakkotrypis said there is still a “lot of work still to be done” from a technical and economic point of view before constructing a gas pipeline from Cyprus to Egypt.
It is the biggest development project on the island with around 7.9 bln dollars invested in infrastructure.
US-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 as soon as possible via pipeline.
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.
Turkey was widely condemned for sending two drillships inside Cyprus’ exclusive economic zone after announcing it would begin its own energy exploration.
In February, ExxonMobil and Qatar Petroleum discovered a huge natural gas reserve off the coast of Cyprus, the island's largest find to date, holding an estimated five to eight trillion cubic feet.
The Italian state-controlled ENI and France’s Total are also heavily involved in exploring offshore Cypriot oil and gas.
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