The Republic of Cyprus is entering into negotiations with the international oil and gas consortium ENI-KOGAS on the licensing of blocks 5 and 6, within its Exclusive Economic Zone (EEZ), reliable sources have said.
According to the same sources, the Council of Ministers approved on Thursday the beginning of talks with ENI-KOGAs for the exploration of hydrocarbons in the two blocks.
The timetable for concluding the talks is set for December 2.
Cyprus’ Minister of Energy Yiorgos Lakkotrypis has been authorized to extend the process if it is not concluded by the deadline but there are positive signs that it will end in agreement.
Lakkotrypis is expected to send a letter to the consortium within the day inviting them to enter into talks.
If negotiations are not fruitful, then the 2nd licensing round will have been completed and the government will in future decide as to when it will proceed with a 3rd licensing round on all blocks which have not been licensed yet.
Preliminary results of a Noble Energy appraisal well for natural gas in Block 12 of Cyprus’ Exclusive Economic Zone estimate the hydrocarbon reserve between 3.6tcf and 6tcf with a gross mean resource of 5tcf. Noble Energy operates Block 12 with a 70 percent working interest. Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership each own 15 percent.
On June 26, 2013, Cyprus government, Delek and Avner signed a Memorandum of Understanding (MoU) with regard to the construction of a Liquefied Natural Gas (LNG) terminal in the Cyprus.
The ENI - KOGAS consortium which has signed a contract for hydrocarbons exploration in blocks 2, 3 and 9 within Cyprus’ EEZ is planning to drill in the third quarter of 2014, while Total, which has signed a contract for blocks 10 and 11, is also proceeding with drilling at the first quarter of 2015.
According to the same sources, the Council of Ministers approved on Thursday the beginning of talks with ENI-KOGAs for the exploration of hydrocarbons in the two blocks.
The timetable for concluding the talks is set for December 2.
Cyprus’ Minister of Energy Yiorgos Lakkotrypis has been authorized to extend the process if it is not concluded by the deadline but there are positive signs that it will end in agreement.
Lakkotrypis is expected to send a letter to the consortium within the day inviting them to enter into talks.
If negotiations are not fruitful, then the 2nd licensing round will have been completed and the government will in future decide as to when it will proceed with a 3rd licensing round on all blocks which have not been licensed yet.
Preliminary results of a Noble Energy appraisal well for natural gas in Block 12 of Cyprus’ Exclusive Economic Zone estimate the hydrocarbon reserve between 3.6tcf and 6tcf with a gross mean resource of 5tcf. Noble Energy operates Block 12 with a 70 percent working interest. Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership each own 15 percent.
On June 26, 2013, Cyprus government, Delek and Avner signed a Memorandum of Understanding (MoU) with regard to the construction of a Liquefied Natural Gas (LNG) terminal in the Cyprus.
The ENI - KOGAS consortium which has signed a contract for hydrocarbons exploration in blocks 2, 3 and 9 within Cyprus’ EEZ is planning to drill in the third quarter of 2014, while Total, which has signed a contract for blocks 10 and 11, is also proceeding with drilling at the first quarter of 2015.
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