Natural gas proceeds can give a boost to the economy, according to Noble Energy CEO Charles Davidson.
Davidson, who was addressing an Eastern Mediterranean Gas Conference in Nicosia, said that according to an Israeli Central Bank estimate, natural gas proceeds from the Tamar block alone are expected to add 1% to the country’s GDP.
On the environmental aspect of natural gas, he noted that natural gas production in Israel has reduced CO2 emissions by 185 million tons.
Davidson, who outlined the successes Noble has had so far in Israel, expressed his company’s appreciation that they were invited to pursue natural gas exploration in Cyprus.
He said that natural gas exploration needs great investment and entails huge risks, noting at the same time however that it is the path which will lead to greater security and a stronger economy.
Whether an interim solution of importing natural gas before production is possible is a worthwhile option which will be known later on this week or early next week, Executive Chairman of Natural Gas Public Company (DEFA) Costas Ioannou said on his part.
The DEFA Board of Directors, which is meeting on Thursday, may open the final economic offers of the finalist companies involved in the tender.
Ioannou also said that planning for the first phase of a natural gas distribution network is in its final stages, all relevant studies having been completed. The project will initially cost 65 million of which 10 million have already been pledged by the EU. At the same time all three phases of the project which will eventually distribute natural gas to the entire island, covering both industrial and residential areas at an estimated cost of 500 million, may secure funding of up to 50% from the European Investment Bank.
PGS has created a non exclusive data library which outlines a plausible geological story of the Levantine basin, “World Oil” Editor Pramod Kulkarni said during his presentation.
Geological and seismic surveys have been carried out and data has been assessed between 2000 and 2012 in the subsea areas between Cyprus, Lebanon and Greece, he added, giving an idea of the prospects that lie beneath.
Exploratory drilling conducted by Huston-based Noble Energy in Block 12 of Cyprus’ EEZ has revealed a gross natural gas reserve from 3 to 9 trillion cubic feet (tcf) with a 60% probability of geologic success. Noble is expected to extract and transfer to Cyprus natural gas by late 2018.
Contracts were signed with the ENI/KOGAS consortium in blocks 2, 3 and 9 within Cyprus’ EEZ and Total for blocks 10 and 11 in the context of the 2nd licensing round.
