Cyprus to have clear oil/gas assessment in 2012

Cyprus expects to have a clear assessment of the quantity of offshore hydrocarbons in part of its territorial waters by March 2012, the head of its energy service said on Wednesday.
Noble, a U.S. firm which has a concession over one offshore block off the east Mediterranean island, is contractually obliged to start drilling between October 2011 and October 2013, Energy Director Solon Kassinis told parliament.
The island has offshore blocks bordering Israel, where Noble and its Israeli partners recently made one of the world's largest deepwater gas finds in the past decade.
Kassinis had previously told Reuters his assessment was of gas reserves in the region of 10 trln cubic feet in the Cypriot block, but that drilling was required to verify this.
"They (Noble) are interested in drilling late this year, early next year to assess the quantity of hydrocarbons," Kassinis told the commerce committee of parliament. "I expect the amount will be apparent by March 2012."
Cyprus's block, known as block 12, lies 34 km away from Leviathan, described by Noble and its Israeli partners as one of the world's largest in the past ten years.
The island signed an agreement with Noble in 2008, after its first licensing round generated scant interest in 2007.
"We expect a second licensing round after the drilling, which will generate a lot of interest," Kassinis said.
Cyprus is now looking at a 20-year supply contract for liquefied natural gas, to wean off its over reliance on heavy fuel oils now used to generate electricity.
Any decision will also take into account the possibility of future Cypriot hydrocarbon finds, Trade and Energy Minister Antonis Paschalides told the same parliamentary meeting.