Chevron to take over Noble’s Cyprus gas field - FINANCIAL MIRROR

20 July 2020

US energy giant Chevron is taking over Noble Energy for $5 bln in an all-share deal, boosting its shale gas assets at home, while expanding its natural gas and crude resources overseas, including Cyprus.

This includes Noble’s stake in Israeli offshore gas fields, as well as Cyprus’ adjacent Aphrodite, where it is a joint venture partner with Shell and Delek.

A joint announcement by the American companies said: “The acquisition of Noble Energy provides Chevron with low-cost, proved reserves and attractive undeveloped resources that will enhance an already advantaged upstream portfolio.

Noble Energy brings low-capital, cash-generating offshore assets in Israel, strengthening Chevron’s position in the Eastern Mediterranean.”

Cyprus parliament ratifies EastMed pipeline agreement - KATHIMERINI

FRIDAY JULY 17, 2020, 16:08

Cyprus’ House of Representatives ratified on Friday the EastMed natural gas pipeline.

The agreement, which was ratified by legislators with 47 votes in favor and two abstentions, provides for the construction of a system of pipelines for the transport of natural gas from the Eastern Mediterranean to supply European markets.

The intergovernmental agreement for the construction of the EastMed natural gas pipeline was signed on January 2 in Athens between Greek Environment and Energy Minister Kostis Hadzidakis, Cypriot Energy Minister Yiorgos Lakkotrypis and Israeli Energy Minister Yuval Steiniz.

Hoegh LNG wants to install Cyprus FSRU - FINANCIAL MIRROR

24th April 2020
Charlie Charalambous

Norway’s Hoegh LNG on Friday confirmed that it has officially applied to Nicosia for a liquefied natural gas infrastructure ownership, operations, and development license in Cyprus.

In a statement, Hoegh LNG said it sent letters to President Nicos Anastasiades, and the Ministers of Energy and Finance, in which the “advantages and benefits of its proposal for the installation of an FSRU in Cyprus, and more specifically at Vasiliko, were presented”.

“The purpose of the letters was for the President and the two Ministers to be informed about Hoegh LNG’s proposal, the application for licensing which was officially submitted to Cyprus Energy Regulatory Authority (CERA), being the competent authority,” said the statement.

Coronavirus: Minister confirms long delay in Cyprus’ gas drilling - CYPRUS MAIL

April 13, 2020

Elias Hazou

Exxon Mobil have informed the government they will be delaying a planned drill in their block 10 concession in Cyprus’ Exclusive Economic Zone (EEZ), with other oil companies expected to do the same due to the ongoing coronavirus situation as well as the sharp drop in energy prices globally.

Energy Minister Giorgos Lakkotrypis confirmed that in recent days he was informed in writing by ExxonMobil that they have pushed back to September 2021 an appraisal (or follow-up) well at the site dubbed Glafcos in block 10.

The Glafcos reservoir, bearing an estimated 5 to 8 trillion cubic feet of gas, is the largest gas discovery to date in Cyprus’ EEZ. The appraisal drilling would have helped the company with its commercialisation decision.

The appraisal well there was initially scheduled for this summer.

French, Italian Companies Will Drill for Energy off Cyprus - THE NATIONAL HERALD

February 21, 2020

NICOSIA – Ignoring threats from Turkey, a French-Italian consortium of oil companies Total and ENI said they will begin drilling off Cyprus despite between oil giants Total and ENI will start drilling in Block 6 of Cyprus’ despite an “escalation” in tension, Energy Minister Giorgos Lakkotrypis said.

That would be done in Block 6 of Cyprus’ Exclusive Economic Zone (EEZ,) parts of which Turkey doesn’t recognize and as it has sent in two ships to also hunt for energy despite denunciation from the legitimate government, a member of the European Union that Turkey has been trying to join for 15 years.

The French and Italian companies said they would start in April although Turkish President Recep Tayyip Erdogan said Turkish warships near the EEZ could use the threat of military force to stop them, as they did earlier when an ENI ship steered away.

Cyprus: Lakkotrypis and Fannon welcome the launch of 3+1 Technical Committee works - IBNA

05/FEB/2020Spiros Sideris

The Minister of Energy, Commerce and Industry George Lakotroupis alongside the US Deputy Secretary of State for Energy Resources Francis R. Fannon welcomed the launch of the works of the first 3+1 Technical Committee (Cyprus, Greece Israel and the US) today, Wednesday February 5 2020 in Nicosia, to address the issue of “Emergency Preparedness and Response to Emergencies Related to Offshore Oil and Gas Activities”.

Speaking to the press, George Lakotroupis explained that the establishment of the Technical Committee had been agreed at the 3+1 Ministerial Meeting in Athens last August. “As I emphasized in my greeting statements, the cooperation of the three countries, plus the United States, is very important. Mind that it began in March 2019, at the 3+1 meeting at Jerusalem at the level of leaders between Cyprus, Greece and Israel, in the presence of the US Secretary of State; and it is precisely the model of cooperation everyone in the region must adopt, in order to be able to promote the common interests of our people”.

Italy fully backs EastMed - KATHIMERINI

01.JAN.2020 : 15:26

On Thursday, Cyprus, Greece and Israel will sign, in Athens, an Intergovernmental Agreement on building the EastMed natural gas pipeline, and Italy's Minister for Economic Development Stefano Patuanelli, whose portfolio includes Energy, has sent a letter of support for the project to his Greek counterpart, Environment and Energy Minister Kostis Hatzidakis.

“I would like to express my warmest wishes for the success of the initiative, which Italy continues to support in the framework of the European Projects of Common Interest,” Patuanelli mentions in his letter.

The agreement will be signed by Hatzidakis and his counterparts from Cyprus, Giorgos Lakkotrypis, and Israel, Yuval Steinitz. Cypriot President Nicos Anastasiades and the Prime Ministers of Israel, Benjamin Netanyahu, and Greece, Kyriakos Mitsotakis, will attend the signing ceremony.

Chinese-led consortium to build Cyprus’ gas import terminal - ASSOCIATED PRESS

13 December 2019

NICOSIA, Cyprus (AP) — Cyprus signed a deal on Friday with a Chinese-led consortium to build the east Mediterranean island nation’s first natural gas import terminal that officials said will help the country generate cleaner and cheaper energy.

Energy Minister Georgios Lakkotrypis said the 289 million-euro ($323 million) floating terminal will help reduce Cyprus’ carbon footprint from electricity generation by up to 30%.

The terminal is designed to convert imported liquefied gas back into gaseous form for use in Cyprus’ main power plant.

A consortium of China Petroleum Pipeline Engineering, Metron, Hudong-Zhongua Shipbuilding and Wilhelmsen Ship Management is expected to finish construction by early 2022.

The terminal that’s expected to be completed by early 2022 is to be built by a consortium of China Petroleum Pipeline Engineering, Metron, Hudong-Zhongua Shipbuilding and Wilhelmsen Ship Management.

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.”

Cyprus aims to sign contract on natural gas infrastructure and supply in 2019 - IN-CYPRUS / CNA

November 27, 2019 at 7:46am
Edited by Bouli Hadjioannou

The government’s aim is to finalise and sign a contract on developing the necessary infrastructure and the supply of natural gas in the Cypriot market within 2019 Energy Minister Yiorgos Lakkotrypis has said.

Lakkotrypis was speaking during an event held to present the annual report for 2018 of the Electricity Authority of Cyprus.

He said the aim is to complete the development project for the necessary infrastructure and the natural gas provision process in the Cypriot market for the electricity production purposes by the end of 2021.

According to Lakkotrypis, the Natural Gas Infrastructure Company (ETYFA) is now in consultations with the first tenderer who is first in line, aiming to finalise the contract and sign it within 2019. Referring to the project he added that it is expected to be completed within 24 months. EAC has a 30% shareholding in ETYFA.

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.

Aphrodite feels the love - PETROLEUM ECONOMIST

Nicosia, 12 November 2019

Gerald Butt

Cypriot energy minister Georgios Lakkotrypis issues the country’s first exploitation licence to the Aphrodite consortium to export gas to Egypt

The discussion of exactly where the gas discovered back in 2011 in Cyprus' offshore Block 12, by a consortium including US independent operator Noble Energy, would end up has loomed for almost all the 2010s.

At his Nicosia office, the country's energy minister tells Petroleum Economist Middle East editor Gerald Butt that the question has now finally been resolved.

What is now the way ahead for Aphrodite?

Lakkotrypis: The plan is that we will transport the gas vis a subsea pipeline to Egypt, liquefying it at Idku, from where it will be shipped by Shell [another partner, along with Israel's Delek, in Aphrodite] to international markets, primarily Europe. We have spent the past 12 months or more discussing the details of a revised production sharing contract (PSC) and field development plan. So now we have the exploitation licence. First gas will be in 2025.

Why has it taken so long to get gas out of Aphrodite?

Our View: Gas deal is great news, but we must be realistic - CYPRUS MAIL

November 10, 2019
By CM: Our View

CONTRACTS for the first hydrocarbon exploitation licence were signed on Thursday and were described by energy minister Giorgos Lakkotrypis, as “another milestone in Cyprus’ energy programme”. It was the first real milestone of our energy programme because as we have learnt over the last few years, licensing rounds, surveys, exploratory drilling and discoveries of deposits might create big expectations, but until contracts for the exploitation of the findings are signed, their commercial value is theoretical.

This is an illustration of the extremely slow pace at which the oil and gas industry moves. The discovery at the Aphrodite field in block 12 was announced in December 2011, the exploitation licence was finalised in 2019 and production is scheduled to begin in 2025. It will be 14 years after the discovery before revenue will start coming in. Even then, it will be reduced because the bigger share will go towards covering the big investment by the oil companies, estimated to be in the region of €7 billion.

Cyprus signs deal for offshore gas concession - REUTERS

NOVEMBER 7, 2019 / 4:41 PM

ATHENS (Reuters) - Cyprus signed a 25-year concession on Thursday with a three-member consortium for the exploitation of a gas reservoir south-east of the island first discovered in 2011.

The contract with Noble Energy (NBL.N), Shell (RDSa.L) and Delek (DEDRp.TA) is the first commercial exploitation license signed by the Mediterranean island. The Aphrodite field is thought to hold an estimated 4.1 trillion cubic feet (tcf) of gas.

Cypriot authorities have said natural gas will start being extracted in 2025, with estimated earnings of 9.3 billion euros ($10.29 billion) over an 18-year period.

“The plan includes the implementation of what we consider the best possible option, transferring gas through an subsea pipeline to Idku in Egypt from where LNG will be exported to Europe and international markets,” Cypriot energy minister Yiorgos Lakkotrypis said in a statement.

In September last year Egypt and Cyprus signed an agreement to build an undersea natural gas pipeline from the Aphrodite field to a liquefaction plant in Egypt.

Gas has a future but must cut costs, Cyprus could see delay amid EEZ furore - CYPRUS MAIL

October 13, 2019

Dr Charles Ellinas

DURING this week I participated in three important conferences in London, which covered global gas and LNG developments and markets, including developments around the East Med. The key conference was Oil & Money, addressed by the CEOs of Shell, BP, Total, Saudi Aramco, ADNOC, Qatar Petroleum and the Secretary-General of OPEC.

Bob Dudley, CEO BP, summed up the challenges and opportunities facing natural gas. He said that gas can play a vital role in the transition towards cleaner energy, helping to meet energy demand, but it will need to be decarbonised. However, he also warned that “one of my concerns is that gas is being increasingly marginalised, even vilified, and demonized.”

While gas is cleaner than oil and coal, it is still a fossil fuel and is coming under attack from environmentalists who are calling for a rapid shift to renewable energy to prevent global warming. If the oil and gas industry does not propose and support solutions to climate change, the climate activists will dictate the policies of the future.

Eni, Total join for another gas search license off Cyprus - THE WASHINGTON POST / ASSOCIATED PRESS

September 18 at 8:53 AM

NICOSIA, Cyprus — Energy companies Total of France and Italy’s Eni have teamed up to expand their search for natural gas off southern coast, signing a licensing agreement Wednesday.

Cypriot Energy Minister Georgios Lakkotrypis said the companies will have an equal share in a new block into which a gas deposit that Eni discovered in an adjacent block last year is believed to extend.

Lakkotrypis said Total also gains a 20-40% share in four of Eni’s concessions inside Cyprus’ exclusive economic zone. Korea’s Kogas is also a partner with a 20% share in three of the four concessions.

With Wednesday’s signing, Eni and Total now hold exploration licenses for seven of Cyprus’ 13 blocks. ExxonMobil and a partnership between Texas-based Noble Energy, Dutch Shell and Israeli Delek hold licenses for one block each.

The two companies are expected to drill six wells in their blocks over the next two years.

Cyprus to adopt new strategy for exploiting Aphrodite gas by 2025 - FINANCIAL MIRROR

27 August, 2019

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.

US-Greece-Cyprus-Israel want oil, gas as much East Med peace - NEW EUROPE

AUGUST 13, 2019 - 16:32

ATHENS – Meeting in Athens, the energy ministers of Greece, Cyprus, and Israel – Kostas Hatzidakis, Georgios Lakkotrypis, and Yuval Steinitz, as well as US Assistant Secretary of State for Energy Resources Frank Fannon – have discussed their cooperation in the field of energy, while affirming their shared commitment to promoting peace, security, and prosperity in the Eastern Mediterranean region.

The four met in Athens on 7 August and agreed to establish a High-Level Working Group (HLWG) that will highlight specific energy projects and propose ways of promoting their implementation.

“The ministers and the United States agreed to support their countries’ energy independence and the establishment of an Energy Corridor of the Eastern Mediterranean, contributing thus to the energy security of the European Union by actively promoting the diversification of import sources and routes,” the US Department of State said in a statement.

JOINT STATEMENT following the Ministerial meeting between Greece-Cyprus-Israel and the United States Regarding cooperation in the field of Energy - MINISTRY OF ENVIRONMENT & ENERGY, GREECE

Athens, August 7th, 2019

The Energy Ministers of the Hellenic Republic, Mr. Kostas Hatzidakis, the Republic of Cyprus, Mr. Georgios Lakkotrypis, the State of Israel, Mr. Yuval Steinitz, and the Assistant Secretary of State for Energy Resources of the United States of America, Mr. Francis Fannon, met today in Athens regarding cooperation in the field of energy, while affirming their shared commitment to promote peace, stability, security and prosperity in the Eastern Mediterranean region.

Mr. Fannon underlined the increasing and tangible support of the US government for the establishment of a structured quadrilateral mechanism for cooperation that focuses on energy matters.

The Ministers and the United States identified several significant areas of common interest, including, inter alia, infrastructure projects, renewable energy and energy storage, emergency preparedness, environmental protection and cyber security, while agreeing to establish a High Level Working Group (HLWG) that will highlight specific energy projects and propose ways of promoting their implementation. The Ministers have agreed to work towards signing an agreement for a joint emergency preparedness and response mechanism for offshore oil and gas operations. The HLWG will report its progress to the Ministers of Energy on a regular basis.

Energy ministers to meet in Athens - KATHIMERINI

MONDAY AUGUST 5, 2019 : 21:02

Greece is hosting officials from Cyprus, Israel and the United States at a ministerial meeting on energy issues on Wednesday.

Environment and Energy Minister Kostis Hatzidakis, Cyprus’ Minister of Energy, Commerce and Industry Georgios Lakkotrypis, Israeli Energy Minister Yuval Steinitz and US Assistant Secretary at the State Department’s Bureau of Energy Resources Francis R. Fannon will meet at the Hilton Athens to discuss areas of potential cooperation and to advance construction of the EastMed natural gas pipeline.

The officials plan to set up a working committee of high-level officials to identify specific cooperation projects and ways to implement them.