“We are in the final stages of agreeing to sell Cypriot gas to Egypt,” a government source told the press.

Plans for Egypt moved ahead after Noble Energy and Delek declared commerciality for Aphrodite in Block 12 in June 2015. Earlier this year, BG, which has a share in the idle liquefied natural gas (LNG) plant in Idku in Egypt, took a 35% stake in Block 12.

However, the move by the Block 12 partners seems to be more about retaining their right to the field than a definite move to production.

Energy consultant Charles Ellinas explained that under the Block 12 production-sharing licence that comes to an end on May 23 2016, the partners either have to approve a development plant or return the entire block to the government.

“It cannot be extended any further … hence the push to achieve this,” he said.

However, with gas prices in Europe down to $4-5 per million British thermal units (mmbtu), exports to Egypt for LNG sales are “commercially challenged”, says Ellinas.

Interest in Blocks 8 and 10

Meanwhile, companies are expressing interest in two of the three blocks offered in the third offshore gas licensing round launched last week.

“Large oil and gas companies from the US and the ones that already have exploration rights offshore the island, have expressed great interest for Blocks 8 and 10,” a government source said.

Last week Turkey protested against the third licence, claiming that part of Block 6 falls within its continental shelf.

“Turkey will never allow foreign companies to conduct unauthorised hydrocarbon research activities within its maritime jurisdiction areas,” the Turkish Ministry of Foreign Affairs said in a statement.

Source: InCyprus