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Cyprus extends ENI concession in 3 natural gas fields

Xinhua, December 29, 2015 Adjust font size:

Cyprus is to extend Italian ENI energy giant's drilling concession in three prospective natural gas fields of it's exclusive economic zone for two more years, Energy Minister Yiorgos Lakkotrypis said on Monday.

ENI had requested the extension to reevaluate new data before completing oil and gas exploration in blocks 2, 3 and 9 for which it has a license, said Lakkotrypis after a meeting of the Council of Ministers.

ENI had failed to discover any gas in two drillings in limestone layers but shortly after its last drilling announced the discovery of a natural gas field in Egyptian waters called Zohr, which contains an estimated 30 trillion cubic feet of gas.

"ENI-KOGAS consortium will have the time to reassess the energy potential which is now necessary following the developments in the Egyptian exclusive economic zone sparked by the Zohr discovery," Lakkotrypis added.

The Zohr discovery in carbonate layers is close to Cypriot block 9.

A statement by the press information office said the Italian-South Korean ENI-KOGAS consortium has tasked a very large team with studying the geological model of the three blocks and prepared a preliminary drilling schedule expected to commence in 2017.

But Lakkotrypis said the consortium's plans may change and a new decision could be made based on a new geological model for the area which will take into account the Egyptian finding in August.

ENI is the second energy company to have its concession extended after French Total had its license in block 11 renewed for two more years.

Total has reportedly spotted carbonate layers in the bedrock in block 11, after it said its geological studies had failed to track possible drilling targets in sandy layers.

A third energy company, Texas-based Noble Energy, has discovered a reservoir containing an estimated 4.5 trillion cubic feet of natural gas in Cypriot block 12 and is currently discussing plans to send gas to both Cyprus and to British-owned BG's two-train liquefaction facility at Idku. Endit