Cyprus to launch third round of gas exploration licensing

Cyprus will soon launch a third oil and gas exploration licensing in its continental shelf, a government official said on Tuesday.

Government spokesman Nicos Christodoulides said the Council of Ministers authorized Energy Minister Yiorgos Lakkotrypis to prepare the necessary documentation and submit a proposal "so that the decision can be implemented the soonest possible."

The spokesman said he could not provide additional information before necessary procedures are completed.

In two previous rounds of exploration licensing in its offshore Exclusive Economic Zone(EEZ), Cyprus gave concession to Texas based Noble Energy, French Total and Italian ENI in association with South Korea's Kogas.

Noble Energy has already discovered a 4.5 trillion cubic feet deposit and is in the process or preparing a development plan.

ENI failed in two exploratory drillings to tap gas and Total is preparing for its first drilling later this year after its original license was extended for two more years.

Cyprus has divided its EEZ in 13 blocks, of which three were ceded to ENI, and one each to Total and Noble Energy, leaving 8 blocks for more licensing.

The government did not say if all 8 remaining blocks will be up for licensing or some of them.

State Television citing official sources, said the government decided to proceed with another round of gas licensing for two reasons, the completion of a reassessment of the energy model of the Cypriot EEZ by French consultants and the big interest shown by energy companies to obtain exploration licenses.

ENI failed to tap either oil or gas in lime geological layers in its first two drillings in Cypriot block nine, but shortly afterwards it discovered a mammoth gas reserve in carbonate layers in an Egyptian nearby block bordering the Cypriot EEZ.

Similar layers extend into the Cypriot blocks and this led energy companies to recalibrate the geological model of the region. Endit