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Benefits from hydrocarbons will be three-pronged says Cyprus Energy Ministers

07 April, 2014

Benefits from the hydrocarbons reserves discovered in Cyprus off-shore blocks will be three-pronged said Energy Minister Giorgos Lakkotripis.

Speaking to the press, Lakkotrypis said the prospects of hydrocarbon exploitation to the economy will come from three directions.

The short-term benefits will come from the hydrocarbon operating in the energy industry, the second prospects stems from exploitation of hydrocarbons reserves and the third and long-term prospect will emerge from the creation and export of a knowledge-based industry.

“What we envisioned is not to stay in oil and gas per se, but also to create a knowledge-based economy around the oil and gas industry. What we want to do in the longer term is to be able to export this knowledge because the gas might be there now the oil might be there now is not going to be there for ever,” he said speaking to a EPP youth conference in Nicosia.

Furthermore, Lakkotrypis said the exploration activity in the Cypriot exclusive economic zone will continue in the summer of 2014.

“We are moving ahead with more explorations in this summer,” he said, adding that “we hope by the end of the year we have more discoveries.”

Preliminary results of an appraisal well carried out by Houston-based Noble Energy for natural gas in Block 12 of Cyprus’ EEZ estimate the hydrocarbons reserve between 3.6tcf and 6tcf with a gross mean resource of 5tcf. Noble Energy operates Block 12 with a 70 percent working interest. Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership each own 15 percent.

The ENI - KOGAS consortium has signed a contract for hydrocarbons exploration in blocks 2, 3 and 9 within Cyprus’ EEZ, while Total has signed a contract for blocks 10 and 11.

He reiterated that Cyprus has opted for a Natural Gas Liquefaction Plant (LNG terminal) contrary to various arguments that this option will be too expensive.

“But seeing ahead of what is coming one must not only look at the cost of the infrastructure. An LNG provides a lot of flexibility it provides the best options,” he said.