Eni/KOGAS begins exploratory drilling in block 9 of Cyprus' EEZ

The drilling will take place at the reserve which has been given the name “Onasagoras” and according to the Minister, the indications are very promising.

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Energy Minister Yiorgos Lakkotrypis has announced that Eni/KOGAS joint venture will begin an exploratory drilling in block 9 of the island`s Exclusive Economic Zone (EEZ).

 

The drilling will take place at the reserve which has been given the name “Onasagoras” and according to the Minister, the indications are very promising.

 

The Minister made the statements to the press following today's signing of an MoU between the Republic of Cyprus and JV Eni/KOGAS, with the aim to investigate areas of cooperation related to potential gas resources valorization, with priority to the onshore LNG option.

 

Eni is the Operator of blocks 2, 3 and 9 of the Cyprus EEZ with 80% participating interest while KOGAS is partner in these blocks with a 20% participating interest.

 

The Minister noted that the agreement basically confirms the Government`s commitment to promoting the onshore LNG plant as the best possible solution for the exploitation of the Republic`s potential reserves, provided that more natural gas reserves will be discovered.

 

He went on to say that the schedule for the exploratory drilling by Eni/KOGAS in blocks 2, 3 and 9 is particularly expanded and the process will begin very soon.

 

The Minister also announced the names of the six potential reserves in the above blocks which are: Onasagoras, Zenon, Kinyras, Amathousa, Evagoras and Praxandros.

 

Approval was given for exploratory drilling for four of these reserves while for the rest the process is underway and announcements will be made soon.

 

The Minister pointed out that these activities have a great element of uncertainty, adding that these are potential reserves with very promising indications, however the success rates are low and this is the practice followed worldwide.

 

Lakkotrypis said that unless drilling is carried out, one cannot be certain of the existence of the deposits, the quantities and the quality of natural gas.

 

Replying to further questions on the date the drilling will begin, the Minister explained that the drill is now carrying out work in Mozambique and it is expected to reach the area in the next few days, adding that the process will definitely take place before the end of the summer.

 

As regards the drilling process in the other four reserves for which approval was given, he said that there are given dates for each reserve, however the order of the process could change at any given point. The procedure for those four reserves will last between 18-24 months. He also said that Eni/KOGAS has shown the will to carry on with more drilli.

So far Cyprus has signed contracts with US Noble Energy on block 12, and French energy giant TOTAL on blocks 10 and 11. Italian heavyweights ENI and KOGAS were given concessions over block 2 and 3 and 9

. Exploration activity in block 12 revealed estimated gross mean resources of 5 trillion cubic feet (tcf).  — (KYPE)

Preliminary deal signed with ENI-KOGAS

By Elias Hazou

THE government on Wednesday signed a preliminary agreement in Nicosia with an Italian-South Korean joint venture on exploring the development of natural gas offshore Cyprus.

In a statement, the energy ministry said the Memorandum of Understanding (MoU) is “aimed at investigating areas of cooperation related to Cyprus potential gas resources valorisation, with priority to the onshore LNG option.

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