Cyprus starts new natural gas drilling in offshore field | Shanghai Daily

Cyprus starts new natural gas drilling in offshore field

Sep 26,2014

NICOSIA, Sept. 25 (Xinhua) -- Cyprus started a new drilling on Thursday in an offshore field prospecting for natural gas which experts believe lie in abundance under the sea in the Levantine basin of the eastern Mediterranean.

The drilling is done by a joint Italian-South Korean venture made up of ENI and KOGAS energy companies in a field of Cyprus's exclusive economic zone.

A total of four drillings have been planned by ENI-KOGAS in 2015 in two other fields for which it has acquired concessions.

Texas-based Noble Energy, in association with two Israeli state companies, has already tapped a gas field estimated to contain about 5 trillion cubic feet of natural gas in a nearby field.

Energy Minister Giorgos Lakkotrypis, who visited by helicopter the drillship about 70 kilometers off the south-east shores of the eastern Mediterranean island, said it will take up to 80 days to complete the drilling and first indications about any hydrocarbon reserves will become known in December.

But he cautioned against too big expectations, saying that despite encouraging indications the risk of failure is high.

Experts believe that the Cypriot exclusive economic zone may contain up to 62 trillion cubic feet of natural gas, enough to meet the needs of the bailed out island for the next 200 years.

Israel has taped rich gas reserves in two fields next to the Cypriot sites and is considering options on how to develop its reserves.

Possible positive indications as to Cypriot reserves may lead to a decision to set up a natural gas liquefaction plant on Cyprus, with a gas pipe to Europe either through Greece or Turkey as an alternative option.

Though Cypriot gas is not expected to start flowing before 2018 or even later, Egypt and Jordan have asked to be among Cyprus's clients for early delivery.

The European Union is also closely watching developments in gas exploration in the eastern Mediterranean island as it is eager to find alternative sources of energy to Russian gas on which many EU countries currently depend.

Link to source: http://www.shanghaidaily.com/article/article_xinhua.aspx?id=243303

Cyprus, French energy company sign memorandum on natural gas plant | Shanghai Daily

Cyprus, French energy company sign memorandum on natural gas plant

Nov 07,2013

NICOSIA, Nov. 7 (Xinhua) -- Cyprus and French giant Total energy company signed a Memorandum of Understanding (MoU) on Thursday to develop a natural gas liquefaction terminal on the south shores of the eastern Mediterranean island.

According to an official announcement, the MoU sets down Total's commitment to give priority consideration to using the plant for liquefaction and export of natural gas to Europe and Asia.

It states that the two sides agreed to cooperate in connection with the future use of the liquefaction plant taking into consideration Total's views on the development of the project.

Total has secured two offshore blocks in the Cyprus marine Exclusive Economic Zone and is expected to start exploratory drilling for both gas and oil next year.

Cyprus has also signed a similar MoU with Texas-based Noble Energy, which has already tapped a gas reserve in a separate block, estimated to contain between 3.5 and 5.5 trillion cubic feet of natural gas.

Cyprus is negotiating with Israel to jointly develop the liquefaction plant which will also serve exports by Israel, which has tapped huge amounts of natural gas in the Levantine basin of the eastern Mediterranean.

Gas reserves in Cyprus' Exclusive Economic Zone are estimated at over 60 trillion cubic feet, but the gas is not expected to reach land before 2020.

Economically depressed Cyprus is pinning its hopes for economic recovery on income from the building of the liquefaction plant, which will provide employment opportunities for thousands of unemployed people and future gas sales.

The project, along with constructing an undersea gas pipe, is estimated at 10 billion euros (13.4 billion U.S. dollars).

The European Commission recently approved three projects of common interest which concern Cyprus, one of them being a feasibility study for a natural gas pipeline from Cyprus to Greece.

Cyprus entered into a 10-billion euro bailout agreement with international lenders earlier this year and its banking system was dealt a near-mortal blow when it was forced to recapitalize by using uninsured depositors' money.

A group of technocrats from the European Commission, the European Central Bank and the International Monetary Fund is set to conclude a second review this year of the Cypriot economy on Thursday, which government sources expect to be successful.

This will entitle Cyprus, which has been shut out of international markets since May 2011, to receive more loan money to finance its government operations.

Link to article: http://www.shanghaidaily.com/article/article_xinhua.aspx?id=178727