Roundup: Cyprus chooses energy companies to negotiate with on hydrocarbons licensing

Cyprus chose energy companies among several bidders for hydrocarbons exploration licensing, Energy Minister Giorgos Lakkotrypis said on Wednesday.

He said Exxon-Mobil, Qatar Petroleum, Italy's Eni, and France's Total will be invited to enter negotiations before obtaining concessions for exploratory drilling and exploiting possible natural gas or oil finds in Cyprus' exclusive economic zone.

Lakkotrypis said Exxon Mobil and Qatar Petroleum will be negotiating for block 10, Eni and Total for exploration block 6.

Separate talks will be held with ENI for block 8.

The companies had submitted bids as part of Cyprus's third oil and gas licensing round that was announced earlier this year, six months after Egypt made public a 30 trillion cubic feet gas find in Zohr, an offshore field administered by ENI.

This find reinvigorated interest in the Eastern Mediterranean as the drilling was done in carbonate layers, whereas previous successful drilling was done in lime layers.

Carbonate layers extend from the Egyptian Zohr field into the Cypriot exclusive economic zone fields.

Eni, in association with South Korea's KoGas, already have permits for blocks 2, 3 and 9. Total has the license for block 11 and had relinquished the rights for block 10 last year. ExxonMobil and Qatar are newcomers to Cyprus's energy scene.

Lakkotrypis and Finance Minister Harris Georgiades have been appointed by the Cypriot Cabinet of Ministers to head the negotiating team with the energy companies.

"We would like to conclude the negotiations by the end of January or early February," Lakkotrypis said.

Each contract will have a duration of seven years split in three periods, three years for the first, and two years for the second and third, which will be subject to negotiation, he said. Endit