More US energy companies will operate in Cyprus to help extract rich natural gas resources, joining ExxonMobil and Noble Energy, US Ambassador Judith Garber told a business dinner in Nicosia.
Garber told the American Chamber of Commerce in Cyprus that “we are proud that two American companies – ExxonMobil and Noble Energy – are participating in this game-changing development.”
“I firmly believe other U.S. companies in the energy sector will join them, as Cyprus transitions from discovery of energy resources to the hard task of bringing those resources to market,” she added.
Garber said the discovery of hydrocarbons in the EEZ of Cyprus offers “great promise and responsibility”.
“We hope, such resources promote prosperity in the entire Eastern Mediterranean region and help to diversify Europe’s energy supply.”
Moreover, she stressed the importance of maintaining an environment that attracts investment, noting that “investors from America and elsewhere always look for predictable, stable environments, with assurances that agreements and contracts will be honoured, backed by secure financial institutions to manage income and expenses.”
Garber also said that US national security, Cyprus’ national security and the security and stability in the Eastern Mediterranean region are inextricably linked.
“We also believe these resources should be equitably shared between the Greek Cypriot and Turkish Cypriot communities.”
“We are concerned about the unlawful activities of the (Turkish) drillship Yavuz, which is operating within the territorial sea of the Republic of Cyprus.
This provocative and unlawful step raises tensions in the region. We are confident that these resources can contribute to the overall economic well-being of Cyprus and thus be a positive force for achieving a solution to the Cyprus problem.”
The Ambassador said the trilateral initiatives among Cyprus and Greece and their regional partners such as Israel, Egypt, and Jordan were important and encouraging, build resilience and act as a multiplier to attract investment to the region.
US Secretary of State Mike Pompeo joined the trilateral gathering in March in Jerusalem with Cyprus President Anastasiades, Israeli Prime Minister Netanyahu, and then Greek Prime Minister Tsipras.
“We will continue to look for opportunities to join such meetings to lend our support as they advance security and prosperity in the Eastern Mediterranean region,” the Ambassador said.
US energy giant ExxonMobil discovered the largest natural gas reserve off the coast of Cyprus in February.
The "world-class discovery" is one of the largest finds worldwide in recent years with an estimated five to eight trillion cubic feet (141.5 to 226.5 cubic metres) of natural gas.
ExxonMobil, along with Qatar Petroleum, is expected to conduct more test drills over the next 24 months.
Texas-based Noble Energy in 2011 made the first discovery off Cyprus in the Aphrodite block estimated to contain around 4.5 trillion cubic feet of gas but it has yet to be extracted.
A multi-billion-dollar revised development and production plan for exploiting the Aphrodite within six years is being reviewed.
According to the timeframes given by the consortium, the gas field is expected to produce natural gas by 2025.
Cyprus expects to earn $9.3 bln over 18 years from exploiting its Aphrodite gas field after Nicosia renegotiated the contract in June.
A re-working of the production contract ensures Nicosia receives an average yearly income of $520 mln over the lifespan of the gas field. The figures are based on the average price of oil being around $70 a barrel.
Previously the consortium – Noble Energy, which is the operator, British-Dutch giant Shell and Israel’s Delek – had no obligation to stick to a timeline, now natural gas is expected to flow from Aphrodite and be pumped to Egypt via a pipeline.
