TOP NEWS !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Cabinet selects major energy companies for Cyprus EEZ's 3rd licensing round.
Source : https://famagusta-gazette.com
Energy giants Exxon Mobil and Qatar Petroleum as well as major European companies Eni and Total were selected by Cyprus` Government within the framework of the 3rd licensing round for offshore hydrocarbons exploration in Blocks 6,8, and 10 in the Exclusive Economic Zone (EEZ) of Cyprus.
Having considered the recommendation of the Minister of Energy Yiorgos Lakkotrypis as well as the preparatory report of the technical Advisory Committee on Hydrocarbons, the Cabinet decided at its Wednesday meeting the applicants for negotiations on the terms and provisions of the Explorations and Production sharing contracts.
The selected companies are the consortium Eni Cyprus Limited/Total E&P Cyprus B.V. for exploration block 6, Eni Cyprus Limited for exploration block 8 and Exxon Mobil Exploration and Production Cyprus (Offshore) Limited/Qatar Pertoleum International Umpstream O.P.C. for exploration block 10.
The Cabinet has appointed a team, led by Minsters of Energy, Finance and Labour, to negotiate contract terms and provisions with the selected applicants. In case negotiations are successful and provided that the agreed contract per individual block is approved by the Council of Minister, hydrocarbons explorations licenses shall be granted. Otherwise, the runner-up applicants will be invited for negotiations.
Answering to questions after the meeting of the Cabinet, Lakkotrypis said that the fact that there were very interesting proposals for block 10 creates optimism, both technically and financially about its prospects. Saying that the energy potential of each block will be proved after the drilling, he pointed out however that the fact that they have received that kind of proposals for investments in a difficult economic environment for the sector of hydrocarbons, leaves the Government cautiously optimistic.
The Minister also expressed the wish that the deal will be completed by the end of January or at the beginning of February.
He also said that the effort, during the negotiations will be to improve the technical, economic and legal conditions of the contract.
Asked if any developments in Cyprus problem influence energy issues, Lakkotrypis said that the Government proceeds with its program and that its main priority is a further research program and further possible discoveries, which will help to better evaluate the energy potential of Cyprus` EEZ.
"Beyond that, our strategy for the exploitation of natural resources in Cyprus` EEZ is one thing, and the procedures for the Cyprus problem another one, " he said.
To that end, he said, the drilling planned in the second quarter of 2017 by TOTAL in block 11 is very important, as well as the geological data of the Egyptian field Zohr, for which Cyprus` Government is negotiating with the Egyptian government.