Cyprus

Oil Majors See Huge Opportunity In Eastern Mediterranean

21 Apr 2017   Cyprus, Israel, Oil Supply

Quite suddenly, there is remarkable oil industry news to come out of the East Mediterranean region. If the plan is executed, in the space of seven years the balance of energy security in Western Europe will be radically changed. In geopolitical terms, this will be immense; when the planned Israel-Cyprus-Greece-Italy gas pipeline is built, European countries will be able to cut their ever-increasing dependence on Russian gas supplies. The story of major gas discoveries in the East Mediterranean started in the shallow-water offshore Egypt, with Miocene Nile Delta discoveries progressively stepping out into deeper and deeper water. The first discovery was made by Phillips Petroleum in 1969, when it drilled the play-opening Abu Qir 1 NFW. It discovered gas in the Messinian Abu Madi sandstones. Subsequent exploration was led by the likes of AMOCO, BG, BP, Eni and Shell. There are now over 100 mainly gas and wet gas […]

Exxon, Qatar Petroleum to tap Cypriot waters

6 Apr 2017   Cyprus

An exploration campaign off the coast of Cyprus is planned by 2018 following a study of the reserve potential, a Qatari energy company said Wednesday. Cypriot President Nicos Anastasiades hosted representatives from Qatar Petroleum and Exxon Mobil for the signing of an exploration and production contract offshore. Qatar Petroleum CEO Saad al-Kaabi said in a statement that moving into the Mediterranean was a prospect of mutual benefits. “This agreement expands our international upstream footprint into the eastern Mediterranean for what we hope is one of the most promising opportunities in this area,” he said. Qatar Petroleum and Exxon secured the rights to develop Cypriot waters in a licensing round last year. International interest in oil and gas exploration has […]

The Two Nations Racing To Host The Next Oil And Gas Rush

29 Dec 2016   Cyprus, Egypt

Bit of a quiet week for major resource news. But several small items are suggesting some potentially explosive developments coming over the next several months. One of those comes in a place I’ve been watching closely the past year: the tiny Mediterranean island of Cyprus . Which this past week announced the winning bidders for an offshore licensing round — handing out acreage that could be prospective for some of the world’s largest natural gas targets. Cyprus’s Ministry of Energy, Commerce, Industry, and Tourism said it has awarded three offshore blocks — one to Italy’s Eni, one to an Eni/Total partnership, and the other to ExxonMobil and Qatar Petroleum. That’s big news because these licenses lie just kilometers away from Egyptian waters where Eni discovered the 30 trillion-cubic feet Zohr natural gas field — one of the biggest petro-finds in recent history. Eni and a slate of fellow majors […]

Israel, Greece, Cyprus to push for gas pipeline to Europe: sources

12 Dec 2016   Cyprus, Israel, Pipelines

Israel, Greece, and Cyprus have decided to take their proposal for a pipeline from gas fields offshore Israel and Cyprus to Europe, Israeli energy sources said late Thursday. This followed talks in Jerusalem between senior government officials of the three countries. The sources said representatives of the three countries would hold talks soon with European Union Climate Action and Energy Commissioner Miguel Arias Canete to promote the proposed pipeline that would run from offshore Israel via Cyprus and then on to Greece, approximately 1,400 km (868 miles). The EU has been looking for ways to reduce its dependence on Russian gas. “A common pipeline is one of the strategic options for exporting gas to Europe from the Eastern Mediterranean and additional gas discoveries in Israeli and Cypriot waters will make this attractive,” Israeli Energy and Water Minister Yuval Steinitz said at the end of the talks. Article continues below… […]

Major oil firms interested in Eastern Med gas

30 Aug 2016   Cyprus

Major international oil companies have submitted bids to participate in Cyprus’ third licensing round for three southern offshore blocks adjacent to Egypt’s northern waters. The three Cypriot licensing rounds have encountered a number of challenges. Turkey’s threats to operating firms overshadowed the first licensing round. It threatened to boycott IOCs operating in Cypriot waters. It did not allow the IOCs to take crude oil from Turkish ports. The IOCs were also not allowed to distribute petroleum products in the Turkish market. Turkey has boycotted Eni but the Italian firm challenged the decision in court and the dispute is being adjudicated. The second licensing round occurred during the Cypriot financial crisis that involved the collapse of two major local banks. The third licensing round has been taking place during the global price collapse. Oil firms […]

Why This Mega NatGas Project Might Not Go To The Oil Majors

7 Jun 2016   Cyprus

The upcoming Cyprus bid round may be one of the best opportunities of the year — to build a new oil and gas empire. When the tiny Mediterranean nation offers up its offshore acreage this summer, all eyes will be on the “usual suspects” in this part of the world. Namely, Italian major Eni — who operates the massive Zohr natgas discovery next-door in Egyptian waters. And others mid-tiers like Noble Group, who work nearby in the Israeli offshore. And there could well be some surprises when it comes to bidders for the Cyprus licenses. Especially from Russian firms — with that nation having shown a surprising level of interest in the eastern Mediterranean energy scene. Don’t be surprised to see a Gazprom or Rosneft pop up in the mix. Of course, there’s also a chance that the Cyprus round could attract some heavier hitters. With names like Shell […]

Italy’s Eni sees Cyprus role in Egyptian gas development

11 Sep 2015   Cyprus

Italian energy company Eni said the republic of Cyprus could serve as a strategic energy hub and a possible conduit for future Egyptian natural gas supplies. Eni Chief Executive Officer Claudio Descalzi met in the Cypriot capital, Nicosia, with President Nicos Anastasiades to discuss the potential for future cooperation . The Italian company said Cyprus could play a role in the near future in a scenario involving the recent gas discovery made off the coast of Egypt. “Eni believes in the significant synergies of joint development in the entire area of the eastern Mediterranean,” the company said in a statement. “This area could be of crucial strategic importance as a gas hub for the whole region […]

Cyprus emerging as regional gas player

9 Jun 2015   Cyprus

A group of Israeli energy partners said they were declaring a natural gas reservoir discovered off the coast of Cyprus a commercial prospect. Delek Group, along with its partners at Avner Oil Exploration and Noble Energy, said they submitted a declaration to the Cypriot government that reserves discovered in the Aphrodite prospect were considered of commercial quality . “In addition, the Aphrodite reservoir partners intend to submit a proposed outline of the development plan of the Aphrodite reservoir to the government of Cyprus,” they said in a joint statement. Delek offered no indication of the reserve estimates in the Aphrodite reservoir. The Mediterranean island nation of Cyprus is considered frontier energy territory, though the offshore area could hold nearly 12 […]

Cyprus: “On the Verge of Significant Energy Production”

31 Dec 2013   Cyprus

 In his introduction of Nicos Kouyialis, Minister for Natural Resources and Environment, Cyprus , panel moderator John Roberts characterized Cyprus as a country “on the verge of significant energy production,” an incredibly apt description, among others, at the 2nd Annual Frankfurt Gas Forum . “The discoveries of substantial quantities of natural gas open up new perspectives and gives a new impetus to the role the Eastern Mediterranean region can play in the global and European energy markets,” he began.  “Our vision is to establish Cyprus as a regional energy hub, utilizing its own indigenous hydrocarbon resources, eventually additional quantities from the neigboring countries,” added Minister Kouyialis. In order to fulfill this vision, he said the basic objectives of the government of Cyprus were “To […]

Cyprus: “On the Verge of Significant Energy Production”

30 Dec 2013   Cyprus

Cyprus In his introduction of Nicos Kouyialis, Minister for Natural Resources and Environment, Cyprus , panel moderator John Roberts characterized Cyprus as a country “on the verge of significant energy production,” an incredibly apt description, among others, at the 2nd Annual Frankfurt Gas Forum . “The discoveries of substantial quantities of natural gas open up new perspectives and gives a new impetus to the role the Eastern Mediterranean region can play in the global and European energy markets,” he began.  “Our vision is to establish Cyprus as a regional energy hub, utilizing its own indigenous hydrocarbon resources, eventually additional quantities from the neigboring countries,” added Minister Kouyialis. In order to fulfill this vision, he said the basic objectives of the government of Cyprus were “To […]

Cyprus likely partner as Israel mulls gas exports, but Turkey beckons

21 Dec 2013   Cyprus, Israel

Israel is studying its options for exporting its natural gas riches in the eastern Mediterranean, but instability in neighboring Egypt and friction with former ally Turkey are blocking possible undersea pipeline links with them to take the gas to Europe. That leaves a joint export operation with neighboring Cyprus, which will be the next big offshore gas producer in the region, looking like the frontrunner — for now, at least, because war-divided Cyprus lies at the center of a long and seemingly intractable dispute with Turkey. Regional security problems are proving to be a major stumbling block in the Jewish state’s drive to capitalize on its newfound energy wealth, with the Israeli navy undergoing an expansion driven by the need to protect Israel’s offshore fields and infrastructure. A recent report by the U.S. Energy Information Administration observed territorial disputes in the eastern […]

Report: Cyprus, energy company Total review LNG prospects

9 Nov 2013   Cyprus

NICOSIA, Cyprus, Nov. 8 (UPI) — The Cyprus government reached an agreement with French energy company Total for a liquefied natural gas plant in the country, The Cyprus Mail reported Friday On Thursday, the two sides signed a memorandum under which they will examine the prospects for an LNG plant along the southern coast of Cyprus, the report said. In February, Total was awarded the rights to explore two reserve areas in the country’s economic zone. The newspaper reported Total has yet to carry out any exploration activity in the reserve areas. A survey is expected in late 2015 and, if the presence of hydrocarbons is confirmed, drilling could take place by 2016. Total likely won’t make a formal decision on whether to move ahead with the LNG project until 2017, the newspaper said. The Mediterranean island nation is considered frontier energy territory. Its offshore area could hold nearly […]