Latest gas drilling ‘very optimistic’ - CYPRUS MAIL

Monday 07 July | 19:40

By Elias Hazou

Drilling at the Pegasus-1 well has detected a 350-metre column of natural gas, the government announced on Monday, giving no more clues about the significance of the find – but separately sources told the Cyprus Mail that the “news from Pegasus is good”.

In a written statement after an afternoon conference call between President Nikos Christodoulides and Vice President of Global Exploration at ExxonMobil John Ardill, the government said another discovery of natural gas has been made at the Pegasus-1 site in Block 10 of Cyprus’ exclusive economic zone (EEZ).

“The Pegasus-1 well… indicated approximately 350 metres of gas-bearing reservoir,” government spokesman Konstantinos Letymbiotis said.

Drilling had been carried out by the Valaris DS-9 rig at a distance of 190km southwest of the island, and at a depth of 1,921m.

“Further assessment will be required in the coming months to evaluate the results.”

Cyprus needs energy transformation in 2025 - CYPRUS MAIL

Sunday 22 December | 16:41

Dr Charles Ellinas

Energy was constantly in the news in 2024, but serious progress was limited.

By far the biggest success was the ‘Photovoltaics (PV) for All’ scheme. With the failure of utility-scale renewables (RES) projects to contribute constructively to Cyprus’ energy mix so far, ‘Photovoltaics for All’ has enormous potential to increase RES penetration and significantly reduce the cost of electricity to those that participate, as well as reduce emissions into the atmosphere. This scheme will continue and household demand to participate in the scheme will increase in 2025.

But where Cyprus really needs to see progress is in the perennial problem of high electricity prices. These remain some of the highest in Europe.

Based on purchasing power parity, in 2024 Cyprus had the second highest household electricity price in Europe, largely due to taxation. Tax accounted for just under 35 per cent of the price, the fourth highest in Europe and well above the corresponding EU average, of about 23 per cent. In Greece this percentage was only around 15 per cent. Bringing taxes and levies down to Greece’s level, could slash electricity prices from 33 cents/kWh to 25 cents/kWh.

Israeli energy minister due in Cyprus to address Aphrodite field dispute - CYPRUS MAIL

September 17, 2022
Christodoulos Mavroudis

Israeli energy minister Karine Elharrar will be in Cyprus on Monday 19 to address the pending dispute with Nicosia over the Yishai gas field, according to his Cypriot counterpart Natasa Pilides.

Pilides told CNA on that Elharrar will be visiting Cyprus “in the context of our institutionalised discussion over Yishai.”

Israeli daily business newspaper Calcalist on Saturday, citing unnamed but reliable sources reported that Israel was looking into a new framework to address the pending dispute with Cyprus over the Aphrodite/Yishai gas fields.

Reportedly, Elharrar will propose to the Cypriot side to take over 10 per cent of the field which the Israeli side considers its own, against monetary compensation.

This comes six months after intergovernmental parleys aimed at resolving the longstanding dispute were announced to be taking place between the two countries.

Evaluation drilling completed at Glafcos 2, high quality natural gas found - CYPRUS MAIL

March 21, 20224
Constantinos Tsindas

Evaluation drilling in the Glafcos 2 offshore plot 10 has been completed successfully and safely, the energy ministry said on Monday.

The drilling activity, which also included production testing, was carried out by the ExxonMobil Exploration and Production Cyprus (Offshore) Limited / Qatar Petroleum International Upstream LLC joint venture, which holds the hydrocarbon licence for the plot.

The drilling work led to the discovery of a natural gas concentration with high quality characteristics, the ministry said.

The companies involved will proceed with a detailed analysis and evaluation of all collected data for a more precise specification of quality and quantity as well as feasible options in developing and commercialising the find.

ExxonMobil, Qatar awarded Block 5 gas rights - CYPRUS MAIL

December 2, 2021
George Psyllides

The cabinet on Thursday awarded natural gas exploration rights for an offshore block to a consortium made up of ExxonMobil and Qatar Petroleum.

Energy Minister Natasa Pilides said ExxonMobil would be administering the Block 5 concession with a share of 60 per cent.

“In addition, I have been authorised to sign on behalf of the Republic of Cyprus, the exploration and production sharing contract agreed with the consortium after intense negotiations,” the minister said.

ExxonMobil and partner Qatar Petroleum plan on drilling an appraisal well in Block 10, where natural gas was discovered, towards the end of November or early December.

Gas projects back on track - CYPRUS MAIL

November 18, 2021

Elias Hazou

The consortium holding the concession on block 10 in Cyprus’ Exclusive Economic Zone are making final preparations for follow-up drilling to narrow down the precise quantities of natural gas in place, with the results expected sometime in spring 2022, Energy Minister Natasa Pilides said Thursday.

She was speaking at a press conference she called taking stock of the energy ministry’s work over the past year.

Pilides said other offshore exploratory projects are likewise getting back on track following the delays caused by the coronavirus situation, stressing that the government is prepared to deal with any Turkish provocations on the high seas.

LNG import terminal a ‘transformational project’ for Cyprus - CYPRUS MAIL

November 12, 2021
Kyriacos Nicolaou

The LNG import terminal project would be transformational for Cyprus said Symeon Kassianides, the chairman of the Natural Gas Public Company (DEFA), said on Thursday at the Eastern Mediterranean Energy Conference being held in Nicosia,

“This project will lift Cyprus’ energy isolation and reduce the country’s reliance on oil,” Kassianides said, adding: “It’s a transformational project for the country, it will lead to lower electricity costs, new technological developments and create jobs.”

Cyprus’ LNG import terminal, a pivotal energy project, took centre stage, during the second of the three-day conference in which energy industry professionals from Cyprus and abroad are participating.

Kassianides, whose presentation looked at DEFA’s impact and the transition towards a cleaner energy source, explained that this is the largest sustainable investment ever undertaken by Cyprus.

ExxonMobil plans to start gas drilling by end of year - CYPRUS MAIL

August 16, 2021
George Psyllides

ExxonMobil and Qatar Petroleum plan on drilling for gas in an offshore block towards the end of the year, Energy Minister Natasa Pilidou has said.

In an interview with daily Politis, the minister said the two companies planned on drilling an appraisal well in block 10 where natural gas was discovered towards the end of November or early December.

“The experts who will take part in the appraisal drill at the Glaucus [Glafcos] well are already in our country and we are in constant contact with the company concerning the procedures that will be followed, both as regards measures against the pandemic, and the plan, the budget, timeframes, etc,” Pilidou said.

Gas ‘breakthrough’ could see movement in months - CYPRUS MAIL

March 14, 2021

Elias Hazou

After nine years, an agreement was reached this week to move forward gas sharing between Israel and Cyprus as a field straddles the borders. But how long will it take to get off the ground?

Following nine years of stop-start talks, the understanding reached earlier this week between Cyprus and Israel over developing the Aphrodite gas field was hailed as a ‘breakthrough’. Given so much time has elapsed, the standard political pageantry surrounding the news was perhaps understandably greeted with a fair amount of skepticism. But analysts do gauge the development as positive, and one that removes an unnecessary thorn in relations between the two countries.

The Aphrodite-Yishai field is a cross-border natural gas reservoir, but the two governments have been unable to reach an agreement on the fine print of its commercial exploitation.

The Aphrodite field holds an estimated 4.1 trillion cubic feet of gas. At stake was about 10 per cent of the deposit.

Nobel prize winner appointed chair of Egypt-Cyprus electricity project - CYPRUS MAIL

September 10, 2020

George Psyllides

Christopher Pissarides, Nobel prize laureate and professor of economics at the London School of Economics, has been appointed chairman of the economic council of EuroAfrica Interconnector, the Egypt-Cyprus electricity interconnector.

In February, Pissarides was also picked by Greek Prime Minister Kyriakos Mitsotakis to chair the committee tasked with the long-term growth strategy for Greece.

“It is a great honour for us that we welcome a distinguished economist and highly respected academic such as Dr Pissarides, contributing his knowledge and extensive wisdom,” EuroAfrica Interconnector strategy council chairman and former foreign minister Ioannis Kasoulides said.

“We are building bridges between continents, as Egypt’s electricity grid will be connected to Europe, through Cyprus, and Egypt becomes a major energy hub for the Arab World and Africa,” Kasoulides added.

The future of global gas demand - CYPRUS MAIL

September 6, 20202

Charles Ellinas

The future of global gas demand was the subject of the Global Gas Report 2020 (GGR) published last month by the International Gas Union (IGU), in collaboration with Bloomberg NEF (BNEF) and Italian gas company Snam.

In addition to reviewing 2019 performance, the report assesses the effect of Covid-19 on the gas industry in the first half of 2020 and analyses the drivers for recovery in the next few years. It also includes a special section on the role of hydrogen and the gas industry in the low-carbon transition, particularly on market potential and technological options and costs of hydrogen production, storage and transport.

Its main conclusion is that the disruption caused by Covid-19 is on the way to reduce gas consumption and LNG trade by 4% in 2020. This and abundant supply of gas have kept prices at historic lows.

But on the positive side, GGR points out that “abundant supply and continued cost-competitiveness, aided by a push for cleaner air, can lead to a recovery in demand to pre-Covid-19 levels in the next two years, as the global economy regains momentum.”

Noble hints at delay in plans for Aphrodite gas field - CYPRUS MAIL

June 16, 2020

Elias Hazou

Noble Energy, the primary concession holder on the Aphrodite gas field, has signalled they are putting on hold plans to develop and monetise the reservoir, while reiterating their commitment to the project.

In a statement provided to daily Politis, the US company said that tumbling commodity prices due to the economic fallout linked to the global coronavirus situation, have led them to “reconfigure” their work schedule in Cyprus as well.

While avoiding the term ‘delay,’ it could be inferred that Noble was hinting at exactly that.

“Reacting to the new state of play due to the Covid-19 pandemic and the drop in commodity prices, we are reconfiguring our work schedule in Cyprus, but we are keeping with our commitments to the Cypriot government,” the company said.

ENI will not leave Cyprus while it has a licence says Italian FM - CYPRUS MAIL

May 16, 2020

Peter Michael

Italy assured Cyprus on Saturday that it’s energy giant ENI will not leave the island’s exclusive economic zone as long as it has a licence.

In statements to the press after a foreign affairs committee meeting in parliament, Rome’s Foreign Minister Luigi Di Maio said ENI will not abandon the island while its licence is still in date.

Commenting on ENI’s presence in the EEZ, he said: “Right now there are no drilling activities underway due to the pandemic, but we hope they will restart as soon as possible.”

Earlier in the month, energy companies ENI and Total notified the government they are postponing their scheduled gas drilling operations off Cyprus for approximately one year.

The two companies had planned to carry out exploratory drilling at a site dubbed Kronos in block 6 of Cyprus’ exclusive economic zone.

Cyprus must redirect its energy policy - CYPRUS MAIL

May 10, 2020

Charles Ellinas

The international oil and gas companies (IOCs) have finally confirmed postponement of planned drilling in Cyprus’ EEZ into 2021. It is understood that the energy minister is looking into extending Eni/Total’s contracts to facilitate this.

The press coverage that followed, stated that it is “important to note that the oil companies are not pulling out”, but “they have merely postponed their planned drilling in response to the many problems currently being faced.”

But is such a complacent view justified? Where is this going? Let’s look at the evolving facts.

Oil and gas companies on the retreat - CYPRUS MAIL

March 29, 2020
Charles Ellinas

The combined effect of the massive decline in global oil and gas demand due to Covid-19 depressing the global economy, and the rapid drop in the oil price – due to unrestricted increase in production by Saudi Arabia and Russia and still high shale-oil production – are forcing the oil and gas companies on the retreat.

By Friday, Covid-19 had infected more than 585,000, resulting in over 27,000 deaths worldwide, and the numbers are still rising. It will probably last well into 2020, but it is difficult to say how long. The last Sars virus took more than eight months before it burned itself out. Covid-19 seems to be substantially more infectious than Sars. Its impact on what was already a weak global economy and oil and gas demand is expected to last into 2021.

Record Egyptian finds but gas glut beckons - CYPRUS MAIL

March 1, 2020

Charles Ellinas

Egypt had another successful year in 2019 and this was showcased at the country’s annual petroleum show, EGYPS-2020, held mid-February in Cairo.

But 2020 is turning out to be a pivotal, but challenging, year for the oil and natural gas industries worldwide and Egypt and the East Med are not immune to it.

Opening the conference, Petroleum Minister Tarek El Molla highlighted the successes of 2019, with the oil and gas sector contributing 25 per cent to Egypt’s gross domestic product.

A total of 29 international agreements were signed during EGYPS-2020, reflecting the great potential and promising opportunities of the Egyptian petroleum sector.

Cyprus to work with Israel over exploitation of Aphrodite gas field - CYPRUS MAIL

January 4, 2020
Peter Michael

Cyprus will send a proposal for the exploitation of the Aphrodite natural gas field in the coming weeks to Israel, government spokesman Kyriacos Koushios said on Saturday.

Speaking on the sidelines of an event for a special needs schools in Alassa, Koushios commented on the signing of the EastMed pipeline agreement on Thursday, saying the government met with Israeli representatives and Prime Minister Benjamin Netanyahu to discuss the exploitation of the Aphrodite field.

“In the next two to three weeks, our side will send a proposal to the energy ministry of Israel, and we believe that there will be no problems for the exploitation of the Aphrodite field,” he said.

He added countries wishing to join in on the EastMed agreement are welcome, something the leaders who signed the agreement noted.

Dispute with Israel will not affect development of Aphrodite, minister says - CYPRUS MAIL

December 9, 2019

Evie Andreou

The outcome of talks between Cyprus and Israel over a dispute regarding the offshore border with Israel’s Yishai gas field will not affect development of the island’s Aphrodite gas field, Energy Minister Giorgos Lakkotrypis said on Monday.

“First, development of the Aphrodite reserve is going on as planned, and second, as regards the special agreement with Israel, there is a set procedure that is being followed for some time and will continue to be followed,” the minister said.

“But the most important thing I want to stress is that these two things, that is, the development of Aphrodite and the procedure for a special agreement, are not linked as far as the Cypriot side is concerned.”

Deal to develop LNG infrastructure and supply in Cyprus reached - CYPRUS MAIL

December 3, 20196Jonathan Shkurko

An agreement to sign a contract on developing the necessary infrastructure and the supply of liquified natural gas (LNG) in Cyprus has been finalised.

The goal is to be able to use LNG in the market for electricity purposes by the end of 2021.

The deal follows lengthy negotiations between the Natural Gas Infrastructure Company (Etyfa), the Natural Gas Public Company (Defa) and the joint venture JV China Petroleum Pipeline Engineering Co Ltd and Metron SA, which will carry out the project.

The government gave the go-ahead to finalise the deal on November 22 during a meeting at the Presidential Palace in which President Anastasiades made it clear that Defa must go ahead with the procedures for the provision of natural gas in Cyprus.

The final process of examining and signing the complex agreement will take place this week.

Gloomy outlook: Aphrodite moves to exploitation - CYPRUS MAIL

Noble’s senior VP K. Elliot (L), Energy Minister G. Lakkotrypis

November 17, 2019
Charles Ellinas

The granting by the government last week of the Aphrodite gas-field Exploitation Licence for 25 years to the Noble Energy, Delek and Shell consortium is a milestone in the development of hydrocarbons discovered in the Cyprus EEZ. Not only it is the first such licence, but it enables the consortium to enter negotiations with Egypt’s Idku LNG plant to secure a gas sales contract for this gas.

Understandably, this generated considerable euphoria even to the extent of talking about the immense profits to Cyprus, estimated to be $9.3billion over the life of such a contract – based on an oil price of $70/barrel.

But let’s try to put this in context. First, the application by the consortium for an Exploitation Licence is a contractual requirement – otherwise it might have to relinquish the gas field. It does not mean that it will immediately proceed with development and production. This requires the successful completion of a number of important steps: Design of all required facilities to get a better handle over costs; Drilling at least one more appraisal well to estimate more accurately Aphrodite’s gas reserves; negotiations with Idku to secure a gas sales contract; Securing the required investment.