The ministry of energy is watching closely developments in relation to the continuing decline of international crude oil prices in connection with plans and objectives associated with the Cypriot exclusive economic zone.
The minister of energy George Lakkotrypis who was asked after the meeting of the cabinet, if Cypriot plans are affected in relation to whether interest for participation in its energy programs may be reduced, noted that the current situation complicates efforts.
"I must say that conditions are indeed very difficult for the whole effort because it is one thing making your calculations based on a certain price for oil and it is another thing making calculations based on almost 1/3 of the price of the original plans".
He added that "there are difficulties but we are dealing with them with moves such as the one approved today by the cabinet".
Brent crude oil fell below $28 per barrel in Asia today, for the first time in more than 12 years due to fears of creating greater supply surplus following the lifting of Western sanctions against Iran, which enables Tehran to resume oil exports.
The Cabinet approved the proposal of the minister of energy today for approving and assigning 35% of the rights in Noble Energy to BG Group (British Gas) as well as its participation in the consortium of the plot 12 of the Cyprus Exclusive Economic Zone (EEZ).
Under the proposal Noble remains the key manager of the plot with a 35% share while 35% will be held by BG, 15% by the Israeli group Delec and another 15% by Avner Oil.
As the minister of energy said "during the coming days, some conditions set by the cabinet in order to proceed to the final entrance of the British company to the consortium of plot 12 will have to be implemented’'.
Asked about these conditions, he referred to letters of acceptance of the terms of proportionate sharing, to guarantees for good performance and other procedural issues.
"This is a very important development because it enhances the consortium on plot 12 towards the exploitation of the Aphrodite deposit."
Asked what will happen if there is any impediment to the conditions, the minister said that "what should follow is how the signing of the amendment to the contract must be made for the entry of the new company and this will happen when we have in hand what is required under regulations, legislation and the proportional sharing contract".
Replying to another question he said that "after the entrance of BG to the consortium is completed, the development and production plan has already started so we will expect to hear its own comments to see if there are ways to accelerate this planning or even save resources".
Asked whether BG has expressed interest for other plots of the Cypriot EEZ, Mr. Lakkotrypis said that the company has "expressed interest in general for the EEZ but not for specific parts".
He added that "since, BG is a potential buyer of gas the company shall have all conditions to speed up procedures to try to channel natural gas from plot 12 through the liquefaction terminal in Idku which is under its management and in which the company is a co-owner".
Asked to comment on consumer reactions about fuel prices despite the drop in prices internationally, the Minister said that "as reflected in retail prices today, about 2/3 of the price corresponds to taxes, so any reduction in international prices will affect the retail price by about 1/3. We have the mechanisms however, with the study conducted a few weeks ago, there is parallel monitoring.
The minister of energy George Lakkotrypis who was asked after the meeting of the cabinet, if Cypriot plans are affected in relation to whether interest for participation in its energy programs may be reduced, noted that the current situation complicates efforts.
"I must say that conditions are indeed very difficult for the whole effort because it is one thing making your calculations based on a certain price for oil and it is another thing making calculations based on almost 1/3 of the price of the original plans".
He added that "there are difficulties but we are dealing with them with moves such as the one approved today by the cabinet".
Brent crude oil fell below $28 per barrel in Asia today, for the first time in more than 12 years due to fears of creating greater supply surplus following the lifting of Western sanctions against Iran, which enables Tehran to resume oil exports.
The Cabinet approved the proposal of the minister of energy today for approving and assigning 35% of the rights in Noble Energy to BG Group (British Gas) as well as its participation in the consortium of the plot 12 of the Cyprus Exclusive Economic Zone (EEZ).
Under the proposal Noble remains the key manager of the plot with a 35% share while 35% will be held by BG, 15% by the Israeli group Delec and another 15% by Avner Oil.
As the minister of energy said "during the coming days, some conditions set by the cabinet in order to proceed to the final entrance of the British company to the consortium of plot 12 will have to be implemented’'.
Asked about these conditions, he referred to letters of acceptance of the terms of proportionate sharing, to guarantees for good performance and other procedural issues.
"This is a very important development because it enhances the consortium on plot 12 towards the exploitation of the Aphrodite deposit."
Asked what will happen if there is any impediment to the conditions, the minister said that "what should follow is how the signing of the amendment to the contract must be made for the entry of the new company and this will happen when we have in hand what is required under regulations, legislation and the proportional sharing contract".
Replying to another question he said that "after the entrance of BG to the consortium is completed, the development and production plan has already started so we will expect to hear its own comments to see if there are ways to accelerate this planning or even save resources".
Asked whether BG has expressed interest for other plots of the Cypriot EEZ, Mr. Lakkotrypis said that the company has "expressed interest in general for the EEZ but not for specific parts".
He added that "since, BG is a potential buyer of gas the company shall have all conditions to speed up procedures to try to channel natural gas from plot 12 through the liquefaction terminal in Idku which is under its management and in which the company is a co-owner".
Asked to comment on consumer reactions about fuel prices despite the drop in prices internationally, the Minister said that "as reflected in retail prices today, about 2/3 of the price corresponds to taxes, so any reduction in international prices will affect the retail price by about 1/3. We have the mechanisms however, with the study conducted a few weeks ago, there is parallel monitoring.
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