According to the available information, there is great interest. Besides the interested parties from the two previous licensing rounds, offers are expected by some of the world’s largest energy companies. It is for this reason that some of the largest energy companies in the world have bought the expensive detailed seismographic data of blocks 6, 8 and 10 which are offered. Among them is BG and BP, and other companies of comparable size and renown.
Along with ENI and TOTAL, the new interested companies will move towards a particularly intriguing stage for the Cypriot EEZ, in a period when the global hydrocarbons interest for research and investment is at a low point.
The blocks offered in the third licensing round receive the most interest after the discovery of Zohr and the new geological interpretation in relation to the reserves connected to the creation of the underwater seamount Eratosthenes.
The greatest interest is exhibited for block 10, followed by block 8, while it is expected that at least one large company will be interested in block 6.
According to data given by the Ministry of Energy to the interested companies, three different facts stand out: Blocks 8 and 10 contain geological structures similar to Zohr, while block 6 has structures similar to Aphrodite, Leviathan and Tamar, in spite of the fact that geological data for this particular section is currently limited. It appears that in the future there will be interest in the rest of block 12 which was returned to the Republic of Cyprus by Noble.
In particular, available data show that in block 6 there is significant topography with sandy rocks of the Lower Miocene period, just like Aphrodite, Leviathan, and Tamar, while the orientation of the topography is similar to Aphrodite. For blocks 8 and 10, there is significant presence of carbonate geological formations of the Messinian period encompassed by Evaporites . This series of such configurations form almost a ring around the underwater mountain range of Eratosthenes. In the same formation and ring, with identical geological data is the adjacent Zohr of Egypt.
The criteria which will constitute the base for choosing among the companies’ proposals for granting research and exploitation of hydrocarbon deposits is the following:
- The technical and financial capabilities of the applicants.
- The ways in which the applicant aims to execute the activities stipulated in the license agreement.
- The financial returns offered by the applicant to receive the license.
- Any examples of ineffectiveness and lack of responsibilities exhibited by the applicant in past licenses of any form, in any country in the world.
The next steps
The evaluation of the submitted proposals is expected to begin after the summer holidays, on 21 August 2016. The final approval of proposals must be conducted by the Cabinet on 20 November. Afterwards, intensive negotiations with each chosen party must be conducted, aiming to be finished by 29 December 2016. The signing of the agreements between the Ministry of Energy and the licensees isscheduled for 18 January 2017.
Source: InCyprus
