All necessary measures being taken for Exxon drilling, minister says - CYPRUS MAIL

JULY 22, 2018 

Cyprus is taking all necessary measures to ensure that US energy giant, ExxonMobil’s exploratory programme in the island’s exclusive economic zone (EEZ) proceeds smoothly, Energy Minister Yiorgos Lakkotrypis said on Sunday.

He also reiterated that developments on the Cyprus problem should not affect the country’s energy programme.

ExxonMobil, which along with Qatar Petroleum has been awarded the exploration licence in block 10, will carry out two exploration wells in the fourth quarter 2018, Lakkotrypis said, speaking to the press in Larnaca.

“The procedures for Exxon to obtain the necessary licences are proceeding as planned and two wells will be carried out in Q4,” he said.

Lakkotrypis did not elaborate on the licences which the company should obtain.

ENI preparing to drill in ‘murky’ plot 6 - IN CYPRUS

September 19, 2017

There is a change of guard when it comes drilling within Cyprus’s EEZ.

The Italian giant ENI’s drill ship Saipem 12000 is scheduled to start a series of exploratory drills at the beginning of 2018 replacing Total’s West Capella, which has already left Cyprus after a disappointing gas find in Onisiphoros well in plot 11.

According to daily “Phileleftheros”, Saipem 12000 has already departed from Angola where it was operating and is heading to Tenerife for essential maintenance before arriving in Cyprus waters at the end of the year or the beginning of the next.

Energy minister plays down Turkish threats over gas drilling - CYPRUS MAIL

Cyprus' Energy Minister Yiorgos Lakkotrypis

April 10, 2017
George Psyllides

Turkish threats over the Republic’s natural gas exploration are nothing new, Energy Minister Giorgos Lakkotrypis said on Monday, reiterating that Cyprus would continue applying its policy on energy.

“Provocations and threats are nothing new,” the minister said.

Ankara had issued threats in 2007, 2011, when US-based Noble Energy started drilling, as well as 2012, when Cyprus announced its second hydrocarbon licensing round.

“We must handle them calmly and certainly we must be prepared well,” Lakkotrypis said.

Cyprus begins signing EEZ energy contracts - IN CYPRUS / CYPRUS WEEKLY

Saad Sherida Al-Kaabi (L), Andrew Swiger (C), Yiorgos Lakkotrypis (R) 

April 5, 2017

Cypriot concessions covering exploration rights within the island’s Exclusive Economic Zone (EEZ) have been ratified with the signing of the first contracts with an energy firm consortium on Wednesday.

The signings will continue on Thursday too.

Last month, the cabinet approved contracts with France’s Total, Italy’s Eni, Exxon Mobil and Qatar Petroleum to explore for oil and gas in offshore areas south of the island. The consortium will officially sign the contracts with the Cypriot government for exploration rights for three offshore blocks off the south and south-western coast.

Welcoming the Senior Vice President of ExxonMobil Corporation, Andrew Swiger, the President and CEO of Qatar Petroleum, Saad Sherida Al-Kaabi, and their associates, Energy Minister Giorgos Lakkotrypis said that Wednesday’s signing ceremony concluded the 3rd licensing round.

Cyprus to move forward with more oil drilling licensing -minister (XOM, ENI, FP) - MARKETS INSIDER / REUTERS

Mar. 22, 2017, 05:26 PM

Reporting: Dion Rabouin & Michele Kambas; Editing by Andrew Hay

NEW YORK, March 22 (Reuters) - Cyprus will move ahead with further licensing for oil drilling after analyzing the results of its most recent exploration, the country's energy minister Yiorgos Lakkotrypis said on Wednesday.

Cyprus announced the completion of a third round of licensing for well drilling in which Exxon Mobil, Italy’s ENI and France’s Total won additional blocks offshore. The contracts will be signed on April 5 and 6, but it has not yet been determined which blocks off Cyprus' coast the companies will drill, Lakkotrypis said.

The minister said that while the country's current priority is "exploration, exploration, exploration," he expected much more for Cyprus on the energy front.

"Once we have the results of this exploration 2.0 as I called it, then of course there will be a fourth (round) and a fifth and a sixth and I’m sure there will be plenty more," Lakkotrypis told Reuters on the sidelines of Capital Link's Invest in Cyprus Forum in New York City.

Contracts with energy companies to be signed next month - FAMAGUSTA GAZETTE

Friday, 17 March, 2017

Cyprus is set to sign on April 5 and 6 contracts with the selected bidders of the third licensing round for explorations in blocks 6, 8 and 10 of its Exclusive Economic Zone, Energy Minister Yiorgos Lakkotrypis announced on Friday.

The three contracts were approved today by the Cabinet.

The body authorised the Minister to sign the contracts with the three companies. “The signing will take place on the 5th and the 6th of April and the details will follow very soon,” Lakkotrypis announced to the press after the meeting of the Cabinet.

Asked whether the contacts differ from those signed with companies in previous licensing rounds, the Minister noted that the contracts were negotiated on March 7, as announced. “Today we had the opportunity to present both the technical and the financial results, as well as the legal (results) of the negotiations, in detail to the Cabinet” he said.

Cyprus approves Eni, Total, Exxon offshore block deals - REUTERS

Fri Mar 17, 2017 | 9:54am EDT
Michele Kambas; Editing by Edmund Blair

Cyprus's cabinet on Friday approved contracts with France's Total, Italy's Eni , Exxon Mobil and Qatar Petroleum to explore for oil and gas in offshore areas south of the island, officials said.

Exploring the Mediterranean's Levant Basin has become more attractive since Eni discovered Egypt's offshore Zohr field in 2015, the biggest gas field in the Mediterranean and estimated to contain 850 billion cubic metres of gas. The Cypriot concessions cover exploration rights for three offshore blocks off the south and southwestern coast and contracts would be signed on April 5 and 6, Energy Minister Georgios Lakkotrypis said.

Eni and Total are in a consortium for one of the blocks and ExxonMobil and Qatar have joined up for another. Eni will be on its own in a third block. The blocks were offered in the third licensing round held by Cyprus.

Constantinos Papalucas on East Med gas developments - ANTENNA TV (CYPRUS)

Constantinos Papalucas is a former Associate with the Environment and Natural Resources Program (ENRP) at Harvard University’s Belfer Center for Science and International Affairs where he focused on the issues surrounding the gas finds and the emerging energy hubs in the Eastern Mediterranean. In this 16 minute interview on ANTENNA's (ANT1, Cyprus) daily show with Nikitas Kyriakou (08/03/2017) Constantinos Papalucas offers a Cypriot perspective on Cyprus & Israel gas developments & the Int. Oil Companies involved, right after the successful completion of the negotiations following Cyprus' 3rd licensing round. The interview is in Greek with English Subtitles.

Good news but realism should prevail - IN CYPRUS / CYPRUS WEEKLY

March 12, 2017
Charles Ellinas

The long-awaited confirmation of Cyprus’ third licensing round awards was made on Tuesday, March 7. As expected, these awards were as follows:

Block 6: ENI-Total consortium
Block 8: ENI
Block 10: ExxonMobil and Qatar Petroleum

The signature bonus to be paid to the government totals €103.5 million.
This was good news and a successful conclusion to a bidding round that saw three of the world’s oil and gas majors committing to Cyprus’ Exclusive Economic Zone (EEZ). The signature of the Production Sharing Agreements is expected by the end of March.

The other equally important news was confirmation that ENI and Total have agreed to extend their cooperation in Block 11 on a 50:50 basis, with Total as the operator. The farm-in deal has been approved by Cyprus’ Council of Ministers.

In the following I analyse these developments and their implications for Cyprus and the region.

Total-Eni forge Cyprus alliance - IN CYPRUS / CYPRUS WEEKLY

March 10, 2017

Italian energy major Eni has finalised a farm-in agreement with France’s Total to acquire 50% participating interest of Block 11, offshore Cyprus.

The agreement, in which Total remains operator of the block, has been approved by the Cabinet.

Under this deal Eni further reinforces its own position in Cyprus exploration, acquiring the right of exploring an area of 2,215 km2, nearby the super giant Zohr discovery in the Egyptian offshore.

The rights on Block 11 were assigned by the Republic of Cyprus to Total back in 2013 at the conclusion of the second international bid round. The exploration well is expected to be drilled in the Block within 2017.

ENI-TOTAL synergy on block “11” the best that could happen, says Executive Director of CHC - FAMAGUSTA GAZETTE / CNA

Thursday, 09 March, 2017

Speaking to CNA, he also said that the synergy between energy companies ENI and TOTAL is the best that could happen to the block `11`.

Executive Director of Cyprus Hydrocarbons Company (CHC) Panos Kelamis said Wednesday that he was very optimistic as to the prospects of Cyprus Exclusive Economic Zone (EEZ), following the successful completion of negotiations for the third licensing round.

Speaking to CNA, he also said that the synergy between energy companies ENI and TOTAL is the best that could happen to the block `11`.

"The prospects are very good," noted the Greek former staff member of Saudi Aramco, referring to the successful completion of negotiations for licensing of blocks "6”, "8” and "10” of the Cyprus EEZ, announced Tuesday by the Minister of Energy George Lakkotrypis. He added that from his background on the exploration he is "too optimistic", but noted that "we should all have patience."

Cyprus agrees gas exploration deals - EXPATICA / AFP

Oil firms active in the Cypriot EEZ at the end of negotiations
regarding Cyprus' 3rd Licensing Round

7th March 2017

US energy giant ExxonMobil, Qatar Petroleum, Italy's ENI and France's Total have successfully bid for rights to explore for oil and gas off the coast of Cyprus, officials said Tuesday.

The contracts, part of the Mediterranean island's third licensing round, will be approved by the cabinet on March 17, Cyprus trade minister George Lakkotrypis told reporters.

ENI and Total jointly negotiated a licence for a block off the island's south coast while ENI secured another on its own. ExxonMobil and Qatar Petroleum successfully bid for a third.

"This is a very important development for both the Cypriot Exclusive Economic Zone and the eastern Mediterranean in general," said Lakkotrypis.

"It reinforces the prospect for hydrocarbons in the area," he added. "You will find that companies are quite optimistic as to the prospects for the eastern Mediterranean, and more specifically the Cypriot EEZ."

Some of the firms could begin exploratory drilling this year, Lakkotrypis said.

ExxonMobil and Qatar Petroleum the new entrants in Cyprus' EEZ

George Lakkotrypis, the Cypriot Minister of Energy, tweeted "Significant developments in #Cyprus oil & gas. Shaping a new picture in Cyprus #EEZ and impacting the potential of the #EastMed as a whole."

The map seen here which accompanied the tweet shows the licensees at the successful conclusion of the negotiations pertaining to Cyprus' 3rd licensing round.

New entrants are ExxonMobil and Qatar Petroleum in block 10. ENI, already present in the Cypriot EEZ, picks up blcoks 6 and 8, the former in an alliance with Total.

In a separate development, block 11 was farmed out with the block's rights now shared by ENi (50%) and Total (50%).

Mapping The Eastern Mediterranean Gas Puzzle - HART ENERGY / WOOD MACKENZIE

Wednesday, March 1, 2017 - 7:00am Bas Percival, Wood Mackenzie 

This year is set to be pivotal for the Eastern Mediterranean upstream sector, with players expected to position themselves on an ever-evolving chessboard of markets, exploration activity and pricing.

In many ways, 2016 laid the groundwork for the activity Wood Mackenzie expects to see this year. Israel implemented a regulatory framework that will speed the way toward final investment decision (FID) for the Leviathan development; progress on the super giant Zohr Field continued at breakneck speed following FID in February 2016; and Cyprus launched its third licensing round, garnering interest aplenty.

LNG plant at Vassilikos still an option, president says - CYPRUS MAIL

President Anastasiades,Mediterranean Oil and Gas Forum 2017

March 1, 2017
Angelos Anastasiou

Monetising the Aphrodite gas field is a top priority for the government, which based on expected future gas finds is also looking at options, including a liquefaction terminal at Vassilikos, President Nicos Anastasiades said on Wednesday.

In his speech at the 8th Mediterranean Oil and Gas Forum in Nicosia, Anastasiades presented the government’s strategy for the development of the hydrocarbons sector, which includes improved cooperation among the region’s countries.

International Conference in Cyprus to focus on Mediterranean gas - FAMAGUSTA GAZETTE

Saturday, 25 February, 2017

Fourth Eastern Mediterranean Gas Conference (EMGC) to take place on 14-15 March in Nicosia aims to explore the region’s potential natural gas resources and the path to production.

The conference organized by Gulf Publishing Company is sponsored by Deloitte and Cyprus Hydrocarbons Company and supported by Tiger Offshore, Petroleum Economist, World Oil, and Gas Processing.

ENERGY: Lakkotrypis meets oil companies ahead of 3rd licensing round - FINANCIAL MIRROR

25 January, 2017

Cyprus Energy Minister Yiorgos Lakkotrypis met with officials from companies and consortia that have been selected to negotiate with the government under the third licensing round for offshore hydrocarbons exploration in Blocks 6, 8, and 10 in the Exclusive Economic Zone (EEZ) of Cyprus.

Lakkotrypis said that on January 13 he held separate meeting with all the companies that have been selected, noting that the object of these meetings was to agree on the dates, the methodology and the procedure to be followed in order to bring the outcome of the negotiations before the Cabinet early in March. 

Egypt, Cyprus Talked Hydrocarbons - EGYPT OIL & GAS

Sunday, 8th January 2017

A press release to Egypt Oil&Gas stated that the Egyptian Minister of Petroleum and Mineral Resources, Tarek El Molla, received the Head of Hydrocarbon Activities at the Cypriot Ministry of Energy, Stelios [Nicolaides]. The meeting was attended by Cypriot Ambassador to Egypt and the Ministry of Petroleum’s First Undersecretary of Agreements and Discovery, Ashraf Farag, as well as the Egyptian Natural Gas Holding Company’s (EGAS)’s CEO, Mohamed Al Masry. In the meeting the Egyptian and Cypriot sides discussed ways of making the best use of petroleum resources and how to develop the two countries oil and gas assets. Additionally, they reviewed the recent gas discoveries in Egypt and Cyprus and ways to get best economic benefits from them.

El Molla stated that during the meeting, both the Egyptian and Cypriot sides discussed the memorandum of understandings (MoU) between the two countries. This included mutual cooperation in the fields of exploration and discovery of oil and gas, as well as exchanging operational expertise. El Molla added that the talks between Egypt and Cyprus ministries, as well as the expertise, led to boosting the cooperation and work between the two nations in order to affect economy.

Participation in a Tender for the Purchase of Oil and/or Gas Exploration Rights in Cyprus – Update - DELEK GROUP

Tel Aviv, January 3, 2017
Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”)

further to what is stated in the Company’s Immediate Report dated July 24, 2016 (ref. no. 2016-01-0088411) concerning submission of a bid for a tender issued by the Government of Cyprus for the acquisition of exploration rights for oil and/or natural gas in the Cyprus EEZ (“the Tender”), by a consortium including among others Avner Oil Exploration Limited Partnership and Delek Drilling Limited Partnership (together “the Partnerships”), provided below an Immediate Report published by each of the Partnerships with an update of the results of the Tender.

Lack of legal expertise could impede energy projects - CYPRUS MAIL

December 30, 2016
Jean Christou

The Cyprus Hydrocarbons Company (CHC) risks remaining without expert legal advice for the foreseeable future, impeding its ability to negotiate major energy-related projects that are on the horizon.

The complication arose after a challenge mounted to the CHC’s decision to award a contract for procuring legal services.

The tender was awarded to Cameron McKenna LLP, for a three-year contract worth some €9.5 million.

But DLA Piper UK LLP, the bidder ranked second in the competition, has appealed the decision with the Tenders Review Authority (TRA).

DLA Piper is arguing that the successful bidder had a conflict of interest.