Encouraging messages from the Cypriot EEZ

Good news for the Cypriot EEZ

Energy Minister Giorgos Papanastasiou analyzed the main goals that the government has set for redefining its energy strategy.

It is, as he said, about the reduction of electricity costs, the optimal utilization of natural gas in the Cypriot EEZ, the assurance of supply, the lifting of isolation and the acceleration of the green transition.

Mr. Papanastasiou, who presented the project of the Ministry of Energy, Industry and Trade for 2023, made special reference to the discoveries of natural gas in the Cypriot exclusive economic zone (EEZ).

He noted that "at the moment there is activity in block '5' from the ExxonMobil - Qatar Energy joint venture with some 3D studies which create optimism".

By 2024, he continued, “confirmation drilling will take place for block 10's Glaukos field with estimated volumes of 5-8 trillion cubic feet (tcf).

Based on the data from the "Glaukos-2" appraisal well, within 2023 potential research targets were identified in Blocks 5 and 10, while possible synergies with neighboring discoveries were also examined.

Additionally, in 2024, preparation is underway and exploratory drilling will be permitted in Blocks 5 and 10.

The minister stated that there are serious indications for "5" and that through the drilling it will become clear what will be found.

Synergies for better EEZ exploitation

Mr. Papanastasiou said that "the ministry encourages the companies in the Cypriot EEZ to carry out synergies, so that the discoveries are connected with pipelines and there are common infrastructures for the development of the fields", pointing out that the distances are not long.

He noted that "companies also take into account the instability prevailing at the moment in the wider region of Cyprus, for the evaluation of their risk".

"In the E. Mediterranean there is Egypt, which is a huge country in dire need of natural gas, and Israel, which seems to be isolating itself from the surrounding area and sees exits in the direction of Cyprus," he said.

He added that "the Republic of Cyprus has the obligation, as one of the most stable countries, to maintain stability in the region, because any other instability will also have an impact on the country's economy", indicated the minister, saying that "we are very careful in moves we make".

With regard to the "Aphrodite" block, he said that an optimized plan is expected to be submitted by the licensed consortium, so that the preparation and completion of related studies can proceed within 2024.

At the same time, he said that in the next three months he should close the issue of the dispute with Israel over the Isai field.

According to Mr. Papanastasiou, the content in the fields "Kronos" and "Zeus" with the companies Eni and TotalEnergies, is of excellent quality and possibly also the quantity.

That is why the submission of a relevant development plan for the "Kronos" deposit is expected, which the Republic of Cyprus will evaluate with a view to reaching an agreement within 2024, as it stated.

On the ongoing developments, he said that "exploratory work is being done on Blocks 2, 3, 7, 8, 9 and 11 so within 2024, an area will be determined to carry out a 3D seismic survey and permitting work on Block 7, while they are potential drilling targets in Blocks 2, 3, 8, 9 and 11 under evaluation.

He also mentioned that there is a possibility of liquefaction of a small amount of natural gas in Cyprus for export by the companies, due to the instability that exists in the region.

In the middle of 2025 the advent of FA

The Minister of Energy, Industry and Trade Giorgos Papanastasiou also referred to the resumption of construction work for the liquefied natural gas import terminal in Vassiliko.

He noted that "we expect the completion of infrastructure in early 2025 while the receipt of the floating unit is expected in June 2024".

At the same time, he said that "the implementation of the internal natural gas distribution network is also being promoted, while there are parallel actions by DEFA to award a tender for the import of liquefied natural gas".

Answering a question about when natural gas is expected to be used in Cyprus, he said that "it is expected in the middle of 2025".

With regard to the competitive electricity market, the minister referred to the procedures for hiring staff and managers for the organizational structure (DSMK) of the EAC, as well as the completion of the legislative framework, with the aim of the full operation of the competitive electricity market.

He added that "transitional regulation rules are also being amended to enable the participation of energy storage facilities.

Source: stockwatch.com.cy

Photo: stockwatch.com.cy