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Positive signs on the horizon...

Two powerful energy agreements

The giant company TOTAL will eventually will stay in Cyprus and will continue the excellent cooperation with the Republic of Cyprus.

Positive developments in investment and energy front.

The Cyprus government has begun discussing with Noble Energy how the company plans to develop their Aphrodite prospect, energy minister said on Wednesday.

The minister confirmed that talks with the US outfit are now ongoing and that a meeting with Noble reps would be taking place on Wednesday and they will continue on Aphrodites Plot.

Under Cyprus production-sharing model, the government is part-owner of the hydrocarbons, and has a say in development and monetisation. It’s understood the talks with Noble are set to last until around March, at which time the Energy company will present its final development plan for their offshore play in Block 12. Possitive new for Cyprus Government.

Noble announced the Aphrodite discovery in late 2011. The reservoir holds a mean of 5 trillion cubic feet of gas. Exorbitant amount beyond the expected which will lead to the development of Cyprus.

Cyprus issues three types of licences: prospecting, exploration and exploitation. Noble as well as the government are eyeing regional markets for monetising their Block 12 gas finds, with Egypt and Jordan earmarked as potential buyers. The Jordanian press has this week been reporting that Jordanian officials are due on the island soon for gas-related talks.

For a deal to export gas to Egypt, the most likely technical solution for would be a floating production, storage and offloading unit. The start of negotiations between the government and Noble over a development plan are a positive sign, hydrocarbons expert Charles Ellinas told the Mail.

At the same time, Noble’s move suggests the company won’t be shelving their eastern Med operations, which for a while had appeared a possibility due to their run-in with Israel’s anti-trust authority.

Assuming Noble and the government reach a deal over the next few months, a final investment decision (FID) by the company should be expected sometime in 2016. It would then take approximately three years to implement the development plan (infrastructure), meaning Cyprus might be able to export its first gas by 2019. But despite the good news, the expert stressed the fluidity of the situation with regard to Cypriot gas exports. In the race to supply gas-starved Egypt, Israel has a leg over Cyprus, having already signed a letter of intent with Cairo.

Partnerships pursuing the Republic of Cyprus is highly that benefit for the island and promotes a single development in the region , both economically and politically stable...

Sk Webline Ltd
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