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16° Nicosia,
10 December, 2018
 

Cyprus opens bids for offshore energy exploration at block 7

Cyprus Government invites energy companies with licenses in Cyprus EEZ to bid for offshore block 7

Newsroom / CNA

The Cabinet decided Wednesday to invite companies that already have exploration licences for other blocks in Cyprus Exclusive Economic Zone (EEZ) to bid for block 7.

It also approved the tender documents for the creation of infrastructure for the import of liquefied natural gas (LNG).

Speaking after the Cabinet meeting, Minister of Energy Yiorgos Lakkotrypis said that, due to its geology, companies expressed interest for block 7 and thus it was decided to invite companies having licences in neighbouring Cyprus’ offshore blocks to express interest. The process, he added, was similar to the process of the third licensing round and would concern the companies awarded licenses in blocks 6, 8, 10, 11.

The Minister clarified that the government decided to proceed with that process in block 7 due to “very specific geological reasons” that have to do with “Calypso” field, a discovery in block 6 of Cyprus’ EEZ, announced by Italian company Eni last February. Eni is the Operator of Block 6 with 50% of participation interest while Total is partner with the remaining 50%. Calypso is considered by Eni a promising prospect that confirmed the extension of the “Zohr like” deposits in the Cyprus EEZ.

Invited to comment on information that French Total and American Exxon-Mobil are planning to create a consortium for block 7, Lakkotrypis said that he did not want to predict what the companies would do. The companies will have one month to submit their bids for the blocks. The bids will then go to an advisory committee and a negotiation process will follow.

Referring to the tender for the creation of infrastructure for the import of LNG in Cyprus, he said that the estimated cost for the project was approximately 300 million Euro, including 100 million which are subsidized by the European Union.
 
The tender concerns among others the purchase of a floating LNG unit, the construction of a jetty, the construction of a pipeline from the floating unit to Vassilikos power station, a storage system e.t.c.

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