ExxonMobil, Qatar Petroleum, ENI and TOTAL, Signing for Blocks 10, 6 and 8 of Cyprus EEZ
Updated The 5 & 6 of April 2017 mark historical days for the energy future of Cyprus after several months of numerous discussions, the contract signing with ENI, TOTAL, ExxonMobil and Qatar Petroleum for the blocks within the Cypriot EEZ for research purposes has started.
The signing of the agreements will happen in two stages. More specifically, according to the relevant announcement from the Energy Ministry, the signing ceremonies for the blocks 6, 8 and 10 of the Cypriot EEZ will take place at the Presidential Palace as follows:
Wednesday, 5 April 2017, at 9 a.m.: ExxonMobil Exploration and Production Cyprus (Offshore) Limited and Qatar Petroleum International Upstream O.P.C., for area 10.
Thursday, 6 April 2017, at 9 a.m.: Eni Cyprus Limited for the block 8 and Eni Cyprus Limited and Total E&P Cyprus B.V., for the block 6.
Finally, it is noted that the signatures are put in the wake of the Quartet of the Ministers of Energy of Cyprus, Greece, Israel and Italy that took place on Monday in Tel Aviv, on the subject of the creation of the natural gas transportation pipe, EastMed, from eastern Mediterranean to Europe. The government will proceed to contract signing with ENI, TOTAL and ExxonMobil, for the blocks within the Cypriot EEZ for Exploration.
Remarks by the Minister of Energy at the signing ceremony for the Exploration and Production Sharing Contract for Block 10 of the EEZ of the Republic of Cyprus
On the occasion of the signing of the Exploration and Production Sharing Contract and the Hydrocarbons Exploration License for Block 10, I welcome to Cyprus the Senior Vice President of ExxonMobil Corporation, Mr Andrew Swiger, the President and CEO of Qatar Petroleum, Mr Saad Sherida Al-Kaabi, and, of course, all of their associates joining us here this morning.
Their participation in today’s ceremony signals the completion of the 3rd Licensing Round for offshore exploration in the Exclusive Economic Zone (EEZ) of Cyprus. It has been a process for which the members of the competent Negotiating Team and Advisory Committee, as well as technocrats from our Ministry, have worked hard and with full commitment to complete within a year. By exercising our sovereign rights, we feel, we have clearly achieved the target set by the Government to attract oil and gas companies with extensive experience to operate in our EEZ.
The strategic significance of ExxonMobil’s and Qatar Petroleum’s presence in the EEZ of Cyprus and, for the first time, in the Eastern Mediterranean region, is immense, especially when considering their financial depth and caliber of expertise in the field of hydrocarbons and LNG.
One of our primary goals during the 3rd Licensing Round was to advance the exploration of our EEZ, aiming, of course, at the discovery of hydrocarbon reserves. This was sufficiently reflected in the evaluation criteria of the technical part of the tender process.
I have to say that this is precisely what we have achieved. A total of twelve exploration wells will be drilled in the newly licensed Blocks 6, 8 and 10. In this regard, we welcome the commitment of the ExxonMobil and Qatar Petroleum consortium, expressed this morning to the President of the Republic, for the drilling of their first exploration well within 2018.
Moreover, of equal importance to our country are the financial benefits arising from signing the three new Exploration and Production Sharing Contracts. Initially, the Republic of Cyprus will receive as signature bonuses a total of €103,5 million.
Our Government’s strategy, of course, extends well beyond achieving the optimal development of our hydrocarbons potential. We also invest, at the same time, in the development of Cyprus’ human resources. Hence we have secured annually a substantial amount for education and specialization purposes, for the benefit of local staff, as well as the young people of our country. In addition, tailored education and training programmes will be conducted.
We firmly believe that investing in the local human capital is a prerequisite for Cyprus to become a true energy hub in the Eastern Mediterranean.
Once more, I would like thank the representatives of the ExxonMobil and Qatar Petroleum consortium, our new partners in the Cypriot hydrocarbons sector, for their constructive approach during the entire 3rd Licensing process and, more importantly, for the trust they have placed on the Republic of Cyprus and its EEZ.
As commemorative of today’s signing, we are presenting each company a symbolic gift, from our Ministry’s Cyprus Handicraft Service: a copper effigy of the ancient ship of Kyrenia.
Copper was once the great source of wealth for Cyprus and the ancient ship of Kyrenia, the best preserved shipwreck in the world, was salvaged from the depths of the Cypriot sea in the ‘60s. Our sincere hope, therefore, at the start of our newly established cooperation, is that it leads to the fulfillment of our common goals and expectations, for the optimal exploitation of the underwater wealth in Cyprus’ EEZ.
ENI TOTAL ceremony Signing for Blocks 6 and 8 Cyprus EEZ
Remarks by the Minister of Energy at the signing ceremony for the Exploration and Production Sharing Contracts for Blocks 6 and 8 of the EEZ of Cyprus
With today’s signing of the Exploration and Production Sharing Contracts, as well as the Hydrocarbons Exploration Licenses, for Blocks 6 and 8 in the Exclusive Economic Zone (EEZ) of Cyprus, the 3rd Licensing Round is officially concluded. The Republic of Cyprus, by exercising its sovereign rights, continues unabated to implement its strategy for advancing the exploration and exploitation of its offshore wealth.
It is with great pleasure, therefore, that we welcome to Cyprus the Executive Vice President of Eni for Southern Europe, Mr Carlo Vito Russo, the Vice President of Exploration in the Middle East and North Africa of Total S.A., Mrs Eleanor Rowley, and all their associates.
Following yesterday’s signing of the Contract for Block 10, we have signed today two new Contracts with companies that are already our valued partners in the EEZ of Cyprus. Their continued commitment, despite the challenges faced by the global oil and gas industry, allows us to be optimistic for the prospects of our hydrocarbon resources.
I note that the consortium of Eni Cyprus Limited and Total E&P Cyprus B.V. is licensed for Block 6, while Eni Cyprus Limited for Block 8.
Both companies possess extensive expertise in the field of hydrocarbons, as well as experience in the Eastern Mediterranean, and by submitting ambitious applications in the 3rd Licensing Round they have opted to further strengthen their presence in our EEZ and, consequently, in the wider region. Of particular significance for the quality of their exploration programmes is the fact that they join forces in Block 6, a strategic move they have also made recently in Block 11.
As we conclude today the final chapter of the 3rd Licensing Round for offshore hydrocarbons exploration, I would like to thank for their dedication and hard work, my two colleagues the Ministers of Finance and Labour, the members of our Negotiating Team, the Advisory Committee and the technocrats at the Ministry of Energy entrusted with matters pertaining to hydrocarbons. We have all put in a huge effort lasting more than a year, and, I am positive, we have been extremely successful.
I also wish to wholeheartedly thank the representatives of Eni and Total for their very productive participation in the process and, of course, for the important vote of confidence they continue to cast in the EEZ of the Republic of Cyprus.
To commemorate today’s signing ceremony, we have decided to present each company with a copper effigy of the ancient ship of Kyrenia.
Given our common goal for fruitful and effective cooperation, aiming at the optimal exploitation of the underwater wealth in Cyprus’ EEZ, we feel that it is a fitting gift as it carries with it many connotations. The ancient ship of Kyrenia, a cultural and historic treasure of Cyprus, was salvaged from the depths of the Cypriot sea, whilst copper was once one of the greatest sources of wealth on our island.
Exploratory drilling is set to take place in block 11 of Cyprus` Exclusive Economic Zone (EEZ) in the first two weeks of July, a top Total official said, on Thursday.
Eleanor Rowley, Total`s VP Exploration, MENA region, was addressing a ceremony, at the Presidential Palace, during which the contracts for exploration and production sharing contracts for blocks 6 and 8 within Cyprus` EEZ.
Energy ministers from Israel , Cyprus , Greece and Italy sign natural gas agreement
Source: PIO & Philenews & CNA