The President was being asked to comment on news that Italian energy giant ENI discovered what may be a 30 trillion cubic feet (tcf) reservoir inside the Egyptian EEZ, at a site just kilometres away from the Cypriot maritime zone.
If confirmed, the Zohr prospect could be the largest ever natural gas discovery in the Mediterranean.
“Absolutely, it is a positive development,” Anastasiades told reporters at the Presidential Palace.
“If you take into account that our own [offshore] Blocks, 10, 11 and 12, are just kilometres away, then no one can deny that the sites containing such a large quantity of gas extend into the neighbouring areas.”
He added: “But there are other aspects to this: the upgrading of Cyprus’ geostrategic and geopolitical role. The huge deposits in the Mediterranean are, and shall continue to be, of major interest for the EU as an alternative source of energy.”
Without Cyprus’ consent, he said, no gas can be transported to Europe or to Turkey, because any such pipeline would necessarily have to pass through the Cypriot EEZ.
“Therefore this upgrades the role of the Republic and also enhances the need to solve the Cyprus problem.”
Asked whether the massive gas find upends Cypriot plans to sell gas to Egypt, Anastasiades said: “Quite the opposite.”
There is a likelihood that the reservoir extends into the Cypriot EEZ. According to ENI, the prospect covers an area of about 100 square kilometres, and has a hydrocarbon column of 630 meters.
The site is located 3.5 nautical miles (6.5 kilometres) from the border of Block 11 of Cyprus’ EEZ. Block 11 is licensed to oil major Total.
If the reservoir does overlap into the Cypriot maritime zone, the unitisation agreement signed between Cyprus and Egypt in December 2013 would presumably kick in.
Such an agreement ensures that if reserves are found in the median line between the two countries, a peaceful, legal agreement exists stipulating how to carve up those reserves. Still, the situation may not be as clear-cut as the precise clauses of the agreement are not known.
Hypothetically, should part of the Zohr prospect cross over into the Cypriot EEZ, this could represent a windfall for the state – the share of proceeds under the unitisation agreement with Egypt – without Cyprus spending a cent on development.
Alternatively, the mere presence of such a large find boosts the probability of separate significant gas reservoirs in the vicinity, on the Cypriot side.
Assistant professor at the University of Nicosia and a researcher with the KIOS Centre, University of Cyprus, Constantinos Hadjistassou points out that more drilling by ENI must take place before an accurate picture of the Zohr reservoir can emerge.
“It’s still early days. There are promising signs for Cyprus, but let’s leave it at that,” he said.
In January of this year, it was revealed that France’s Total was considering abandoning its prospecting in Cypriot waters after failing to identify good drilling targets.
Anxious to keep Total’s operations going, even on a token level, the government subsequently moved to amend the company’s contract.
Total relinquished Block 10 without drilling any wells. The company was released from its original two-well drilling commitment – across two adjacent blocks, 10 and 11, lying on the maritime border with Egypt – but maintained exploration rights in Block 11, agreeing to continue to evaluate 3D seismic data in a bid to locate a possible target.
The results of their surveys in Block 11 are expected before the end of the year, government sources told the Cyprus Mail.
Now, with the Zohr discovery, the company may well rethink its approach. But their exploration programme in Block 11 ends in February 2016, giving them precious little time to make a concrete move, such as drilling a well – unless the government renews their exploration license.
“Everyone is evaluating the new discovery in Egypt’s EEZ and its possible technical/geological implications,” the source said.
A buzz was created on Twitter on Tuesday after Norwegian surveyors PGS said the Zohr discovery possibly extends into Cyprus.
But the government source, who requested anonymity, said one should take such assertions with a grain of salt.
“PGS are of course looking to play up the discovery in order to sell their data to customers. And keep in mind that right now things are sluggish in the whole hydrocarbons business.”
Likewise energy expert Charles Ellinas stressed that it is too early to call the ramifications for Cyprus from the Zohr discovery. ENI itself has given no indication that the reservoir extends into the Cyprus EEZ, he said.
“Reading the press in Israel, there’s a great deal of distress, even despair, about ENI’s find in Egypt. Over there, concerns are discussed in public. Here, unfortunately, we try to put a positive spin on everything.”
Source: Cyprus Mail
