French company Total was granted hydrocarbon exploration licenses in Cyprus’ Exclusive Economic Zone blocks 10 and 11, after signing here today two production sharing contracts with the Ministry of Commerce.
In his statements, Commerce Minister Neoclis Sylikiotis said after the signing ceremony that today’s act completes one of the most crucial targets of the government’s energy agenda, “the successful conclusion of the second licensing round”.
Arnaud Breuillac, TOTAL Middle East President for oil exploration and production, said from his part that the company will proceed with two-dimensional seismographic studies in block 10 and three-dimensional ones in block 11.
Responding to questions, Breuillac said the company would proceed with oil and natural gas drillings, but added that it is too early to say which one will have priority over the other.
According to sources, the signature bonus is estimated at 24 mln euros.
On January 24, the Republic of Cyprus signed contracts with the ENI/KOGAS consortium for hydrocarbons exploration in blocks 2, 3 and 9 in the EEZ of Cyprus.
In 2008 Cyprus signed its first hydrocarbon exploration contract with US Noble Energy for offshore block 12. Exploratory drilling conducted by Noble in late 2011 revealed a natural gas reservoir with an estimated gross mean of 7 trillion cubic feet.
Get all the latest news and videos in your inbox. Register FREE