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Major energy companies bid in Cypriot offshore gas exploration licensing

Xinhua, July 28, 2016 Adjust font size:

Major energy companies submitted bids in the third round of licensing for offshore gas exploration in a Cypriot exclusive economic zone, Energy Minister Giorgos Lakkotrypis said on Wednesday.

He said eight companies, mostly participating in consortia, submitted a total of six applications for three offshore blocks.

He said ExxonMobil Exploration and Production Cyprus (offshore) Limited in association with Qatar Petroleum International Upstream O.P.C, submitted a bid for prime block 10, which is close to a mammoth Egyptian gas field known as Zohr, containing an estimated 32 trillion cubic feet of natural gas.

A second consortium, ENI Cyprus Limited and Total E&P Cyprus B.V. and one company, Norwegian Statoil Upsilon Netherlands B.V., also submitted separate bids for block 10, Lakkotrypis said.

He added that the ENI-Total consortium also submitted the sole application for block 6.

Block 6 is being contested by Turkey that claimed part of the block is within Turkey's exclusive economic zone.

Cyprus says the demarcation of its exclusive economic zone was done in line with the UN Convention on the Law of the Sea, which Turkey has refused to ratify.

Lakkotrypis said two bids were submitted for block 8, one by Eni Cyprus Limited and the second by Consortium Capricorn Oil (Cairn Energy of Britain-Scotland) and Delek Drilling/Avner Oil Exploration (of Israel).

The Energy Ministry has said in a statement that the six applications will be evaluated by the competent Advisory Committee, which will then draft its opinion in a preparatory report.

Final awarding will be done in about three months by the Cypriot government on the basis of a recommendation by the Minister of Energy.

"The government is very pleased with the bidding by companies possessing economic and technical potential for offshore gas exploration, as this was in line with its planning," said Lakkotrypis

He said that commercial negotiations are at an advanced stage with Egypt for selling gas from the Aphrodite gas field discovered by Texas-based Noble Energy in association with the Israeli Delek company.

He added that consultations are also under way between Cyprus and Israel for possible joint development of adjoining gas fields.

Lakkotrypis said he and his Israeli counterpart will try to conclude an agreement by September. Endit