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The exploitation licences in blocks 2, 3 and 9 of the Cyprus Exclusive Economic Zone (EEZ) have expired and have not been renewed, as the exploration did not show exploitable natural gas deposits, Minister of Energy, Trade and Industry George Papanastasiou confirmed to the Cyprus News Agency (CYPE).
This development also marks the withdrawal of the Korean state-owned company Kogas from the Cypriot EEZ, as it held 20% of the rights to these blocks. Following the expiry of the licences, the Italian company Eni, which played a leading role in the consortium, now retains rights to four blocks (6, 7, 8 and 11) in the EEZ in partnership with the French company Total, compared to the seven blocks they previously held.
Asked about a report by the energy website MEES (Middle East Economic Survey) about the return of the rights to blocks 2, 3 and 9 at the end of January, Papanastasiou confirmed that the licenses expired without renewal, as the surveys did not yield encouraging results in relation to the existence of natural gas.
"The exploitation licenses in these blocks expired. In blocks 2 and 9 where surveys/studies were completed, there did not seem to be anything promising gas and we did not renew," he said. He added that the same was true for Block 3, where exploration was more limited.
The minister noted that the non-renewal of permits was a "natural development", as not all blocks in Cyprus' EEZ were expected to have deposits.
The exploration licences for blocks 2, 3 and 9 came into force in January 2013, when they were awarded to a consortium of Eni Cyprus Limited and Kogas Cyprus Limited. Subsequently, TOTAL E&P Cyprus BV joined the consortium.
2D and 3D seismic surveys were carried out in the licensed areas, as well as two exploratory wells in Block 9, which, despite the great depths reached (5,800 metres for the Amathusa-1 well and 5,485 metres for the Onasagoras-1 well), did not result in the identification of exploitable quantities of natural gas. In Block 3, the work started in 2018 was interfered with by the Turkish navy.
