The first exploratory drilling by the ENI – KOGAS consortium will take place within 2014, in block 9, Minister of Energy, Commerce, Industry and Tourism Yiorgos Lakkotrypis and ENI CEO Paolo Scaroni have said.
An ENI delegation had a series of meetings here today, including a meeting with the President of the Republic Nicos Anastasiades.
In statements to the press, Lakkotrypis said the company views the possibility of participating in an LNG plant project in a positive light, adding that such participation will depend on whether they do discover hydrocarbons’ reserves.
In that respect the Republic and the company have signed a framework agreement, he noted, which covers the terms under which ENI would participate in an LNG plant.
Replying to a question, Lakkotrypis further said that so far the first exploratory drill is set to take place in the second half of next year, in block 9, adding at the same time that efforts are being made to step things up.
Seismographic surveys will take place initially for the other blocks the consortium is licensed to drill in.
Asked how the government intends to proceed as regards a third licensing round, Lakkotrypis said that it plans to go ahead, adding that a date has not been decided upon yet but it will be soon. The third licensing round will involve all the blocks with Cyprus’ Exclusive Economic Zone which have yet to be licensed.
On his part Scaroni said the meetings the ENI delegation had with both Lakkotrypis and the President were fruitful as regards the development of blocks 9, 2 and 3 assigned to the consortium.
‘We have been discussing our future in those blocks, how we develop the blocks and we will start our exploration here”, he said, adding that “we expect to make the first well in 2014 so it would be in a short time”.
Referring to the meeting with President Anastasiades, he said they discussed “our developments here and other potential cooperation in the country”.
He also spoke of the scholarships granted by ENI to two Cypriots to study in Milan.
“Our philosophy every time we enter a country is that the people should get some benefits from our presence”, he noted.
Asked if ENI is interested in participating in the LNG terminal to be constructed in Cyprus, Scaroni said the company will be interested as long as a discovery is made.
Asked whether ENI is conducting 3D surveys, he said the company is already conducting 3DS.
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.
