once more the close traditional ties between Cyprus and Egypt, and establishing, in the most formal way, our
two nations’ strategic partnership in the energy sector. Crucially, both the Agreement and the planned Pipeline
it concerns, have the full support and backing of the EU. After all, we are essentially talking about a European
Pipeline, intended to transport Cypriot natural gas to Egypt for re-export to Europe in the form of Liquified
Natural Gas (LNG).
The discussions between the Aphrodite Contractor and the Minister, in order to reach a mutually acceptable
Development and Production Plan, are ongoing.
Needless to say, that, upon discovery of any future deposits via the exploration programs and plans of our
Licensees ahead, we will be considering all options, including the Cyprus LNG Plant at Vassilikos, with
quantities and price of gas at that time being the factors affecting the LNG decision.
Dear Participants
The three Licensing Rounds that we have had thus far since 2007 attracted interest from a number of
exploration companies; eight exploration blocks have been awarded to prominent American, French,
Italian, Israeli, Dutch, Qatari and Korean exploration companies. As the knowledge in the Levantine and
Herodotus Basins increases, the exploration programs of the Contractors unfold.
The discovery of the Zohr natural gas field in the Egyptian EEZ in August 2015, some 6 km from the border
with Block 11, was an important milestone providing new perspective to the oil and gas potential of the area
and attracting the interest of International Oil Companies. It proved that the so-called clastic reservoirs and
drilling targets that have been explored for decades in the region (and they have been explored successfully –
Tamar, Leviathan, Aphrodite and others are discoveries of that sort), are not the only targets for exploration.
The Zohr discovery, found in carbonate reservoir, made these carbonates an important new exploration play in
the region.
In September 2017, the drilling operations of the “Onesiphoros West 1” exploration well in Block 11, by the
Franco-Italian consortium of TOTAL/ENI, were completed. Data acquired during the drilling and the evaluation
work that followed indicated the presence of natural gas in a carbonate reservoir, under the Messinian
evaporite seal; these results are technically significant as they proved the presence of a petroleum system in
the area and the existence of carbonate reservoir, hence verifying the Zohr geological model. Nonetheless,
assessment of the quantity of natural gas that was discovered lead to the conclusion that the discovery is not
commercially viable, as a stand-alone project.
Following the 3rd Licensing Round that resulted in the award of exploration blocks 6, 8 and 10, in February
2018, the ENI/TOTAL consortium of Block 6 completed the drilling operations of the “Calypso 1” exploration
well. It resulted in a discovery of clean natural gas in a carbonate reservoir, confirming once more the presence
of “Zohr-like” so-to-speak play. Additional studies are needed and will be carried out in order to assess the
range of the gas volume in place and define further exploration and appraisal operations.
Next on the agenda are the drilling activities of the ExxonMobil/Qatar Petroleum consortium in Block 10. The
Contractor will drill two back-toback exploration wells, beginning before the end of the year. The rest of the
Licensees are putting together their drilling exploration campaigns for 2019.
Ladies and Gentlemen
The Eastern Mediterranean has the potential of becoming a new source of energy for the EU, significantly
contributing to the European Union’s energy security. We are for the establishment of the East-Med Corridor,
which is in line with EU policies on diversification of sources, routes and suppliers. To-date the Eastern
Mediterranean has roughly 2000 Bcm of natural gas discoveries (about 70 Tcf), whereas by comparison EU
Member States consume approximately 425 Bcm (15 Tcf) of natural gas per year. While the vast majority of
these discoveries will satisfy primarily regional demand, it is becoming clear that the region’s resources could
also satisfy European demand. We are of the opinion that we must create export options for the region.
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