The firm will sign an agreement to provide for geological surveys in a different area but no drilling, according to Energy Minister George Lakkotrypis who is now in Cairo for energy-related talks.

Total confirmed in January that it had completed surveys over two Cypriot offshore blocks for which it had licenses, without finding potential drilling targets.

Italy’s ENI failed to find gas in a drill last year and is now searching elsewhere off Cyprus. US energy company Noble found gas reserves in 2011.

Total is among a raft of international oil exploration and production companies, including BP and ConocoPhillips , that have slashed 2015 budgets in light of lower oil prices.

Drilling in the east Mediterranean is costly, because of its considerable depth.

On Tuesday, Lakkotrypis is meeting with Egyptian Prime Minister Sherif Ismail and the country’s Petroleum Minister Tarek El-Molla.

The purpose of the meetings is to “review ways of further strengthening cooperation between Cyprus and Egypt on hydrocarbons issues,” an official announcement said.

Last month a huge natural gas reserve – Zohr – was discovered offshore Egypt, leading to concerns that the energy-hungry country may no longer have need for neighbouring Cypriot natural gas.

But Egyptian officials have dismissed the concerns, insisting that they are still keen on importing gas from Cyprus’ Aphrodite field.

Source: InCyprus