Cyprus is closer to becoming a regional energy player after the discovery of an estimated 5-8 trillion cubic feet of natural gas deposit in block 10 of the island's EEZ.
ExxonMobil’s discovery in combination with already mapped reserves and future findings, bring Cyprus closer to having enough resources to proceed with the construction of a liquified natural gas terminal.
The estimated value of resources found at the target dubbed "Glafcos" in block 10 is between USD 30 bln and USD 40 bln, according to preliminary calculations, with specialists arguing that the specific deposit could cover Cyprus' electricity generation needs for the next 200 years.
But the find would keep ExxonMobil on Cyprus for the next 20 year – the lifespan of the gas field – that could generate revenue of nearly $2 bln a year with the government receiving at least $500 mln annually depending on the profit share agreement, minus initial investment costs.
Following the results of the Glafcos well, the estimated quantity of natural gas in the Cypriot EEZ could increase to about 13 to 16 Tcf – making an onshore LNG plant more feasible.
An estimate four trillion cubic feet natural gas deposit in the “Aphrodite” target was located in research drills conducted by the Noble-Shell-Delek consortium, while an estimated 3-4 trillion cubic feet reserve was located at the "Calypso" target, by Italy’s ENI.
ExxonMobil's drilling platform, Stena Icemax, will remain at the Glafcos target until 10 March. Based on standard practice, a second confirmation drill is to be carried out there – this confirm larger or smaller quantities of gas reserves.
Commenting that it is to soon to talk about the exact quantity of resources in block 10, Energy Minister George Lakkotrypis said that the deposit is of ‘excellent quality’.
With regard to Calypso, the Energy Minister said that the company is expected to announce the final results it in the coming days. Calypso is part of block seven, for which the ministry decided on Thursday to issue more drilling licenses.
Regarding the exploitation of Aphrodite's deposits, Lakkotrypis said the government is close to finalizing a deal with Egypt and a number of companies but did not want to reveal more details.
Regarding the creation of a liquified natural gas terminal, he said that the discovery announced on Thursday does not give Cyprus enough quantities to go ahead, but in combination possible future discoveries the balance may overturn.
