Aphrodite gas­field is “com­mer­cially vi­able”, as Egypt pipe­line also seen as an op­tion

Financial Mirror (Cyprus) - - FRONT PAGE -

The three part­ners in the first nat­u­ral gas off­shore field south of Cyprus have de­clared the 8 bcm a year project as “com­mer­cially vi­able”, end­ing spec­u­la­tion of the size of re­serves dis­cov­ered and mov­ing on to the next stage of ex­ploita­tion, pos­si­bly through a pipe­line to Egypt, af­ter the is­land shelved its plans for a land-based liq­ue­fac­tion plant.

The Min­istry of En­ergy, Com­merce, In­dus­try and Tourism an­nounced that Noble En­ergy In­ter­na­tional Ltd, Delek Drilling Limited Part­ner­ship and Avner Oil Ex­plo­ration Limited Part­ner­ship, hold­ers of the li­cense for the ex­plo­ration of hy­dro­car­bons in Block 12 of the Cyprus Ex­clu­sive Eco­nomic Zone (EEZ), have de­clared com­mer­cial­ity of the “Aphrodite” nat­u­ral gas field.

The Min­istry said it wel­comes the said dec­la­ra­tion of com­mer­cial­ity, while En­ergy Min­is­ter Ge­or­gios Lakkotrypis said this was a “sig­nif­i­cant step to­wards ex­ploita­tion.”

A sub­mis­sion to the Cypriot gov­ern­ment of a devel­op­ment and pro­duc­tion plan for the “Aphrodite” field will fol­low.

The min­istry added that this “con­sti­tutes a sig­nif­i­cant mile­stone to Cyprus’ tran­si­tion from the hy­dro­car­bons ex­plo­ration phase to that of ex­ploita­tion … and the mon­eti­sa­tion of the in­dige­nous nat­u­ral gas re­serves, both for do­mes­tic elec­tric­ity gen­er­a­tion and other uses, as well as ex­ports via di­rect sub­sea pipe­lines to neigh­bour­ing coun­tries.”

Noble En­ergy said it is pre­par­ing a field devel­op­ment plan for sub­mis­sion to the gov­ern­ment, which is the next step to­wards reach­ing a fi­nal in­vest­ment de­ci­sion in­clud­ing tech­ni­cal en­gi­neer­ing de­sign work and pro­cure­ment plan­ning, as well as iden­ti­fy­ing buy­ers for the re­sources.

“The Aphrodite field has the po­ten­tial to sup­ply the Cyprus do­mes­tic mar­ket and help meet strong re­gional de­mand,” Noble said.

News re­ports sug­gested that the Aphrodite field will have an out­put of 8 bil­lion cu­bic me­tres (300 mln tril­lion cu­bic feet) a year of nat­u­ral gas and will prob­a­bly be shipped via pipe­line to Egypt.

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