10/12/2021 16:14
The Cypriot government and the consortium of ExxonMobil and Qatar Energy signed an Exploration and Production-sharing contract and a hydrocarbon exploration license for block 5, in the consortium’s second license in the Cyprus Exclusive Economic Zone (EEZ) following the adjacent block 10.
The contract was signed by the Energy Minister Natasa Pilides on behalf of the Cyprus government and by Varnavas Theodosiou, CEO of ExxonMobil Cyprus and Ali al Mana Director of Qatar Energy’s International Upstream and Exploration.
This is the tenth licenced block of the total 13 blocks of the Cypriot EEZ. ExxonMobil and Qatar Petroleum exploratory drilling in block 10 in 2019 revealed the Glaucus gas find estimated to bold a gross mean of 5 to 8 trillion cubic feet. The consortium is expected to proceed with an exploratory well expected to begin in the end of December, restarting hydrocarbon activities which we interrupted by the Covid pandemic.
Addressing the ceremony, Pilides said both the government and the consortium identified “the geological prospects and the potential production synergies arising from licensing block 5” and negotiated the terms of the contract signed today following five months.
“As such and in spite of the increasingly difficult working environment for the global oil and gas industry, today we are taking a decisive step towards enhancing our mutually beneficial partnership in Cyprus’ EEZ,” she said.
The Energy Minister also said that the consortium assured that in 2022 will begin field work for seismic data acquisition.
On his part, Varnavas Theodosiou, CEO of ExxonMobil Cyprus, said that “this development in addition to our exploration activities in the neighbouring block 10 which resulted in the Glaucus discovery in 2019 enable us to further expand our presence in Cyprus in what we believe to be a promising region for offshore exploration.”
He added the consortium has appreciated the very constructive approach from the government, demonstrated consistently by a very strong level of alignment collaboration and commitment to our plans and operations.
“We highly value our strong working relation with the Ministry of Energy, Commerce and Industry and we look forward to continue working with the Cyprus government to help realise the country’s hydrocarbon potential,” Theodosiou said.
Asked whether the companies were concerned over Turkey’s reactions to the licensing of block 5, a part of which, according to Ankara’s assertions, lies within the Turkish continental shelf, Pilides said the consortium proceeded with a significant investment and consumed time in concluding the negotiations
“I don’t believe that if this was the case, we would have this result,” Pilides said adding “we proceed on the basis of international law and the Law of the Sea, this has always been our principle on which we proceed on issues relating to our EEZ and will continue to do so.”
Replying to a question in the sidelines of the ceremony, Pilides said that geological data point that block 5 is connected to block 10 while it has “promising geological data” on its own but noted that this block has no detail seismic data.
Therefore, the first priority of the consortium is the acquisition of seismic data that we believe will provide more information, the Minister said, adding that field work will begin in the second half of 2022.
Cyprus has been divided since 1974 when Turkey invaded and occupied its northern third.