ExxonMobil starts second test drill for gas

ENI and Total also plan more explorations this year while Turkey flexes its muscles

US energy giant ExxonMobil and Qatar Petroleum completed their first test-drill for hydrocarbons offshore Cyprus and begun exploring a second well this week.

The Energy Ministry announced on Wednesday that test drilling in the Delphine-1 well was completed in block 10 of Cyprus’ Exclusive Economic Zone.

It said the Stena Icemax drilling rig has already relocated with work starting on a second well called Glafcos-1 also in block 10 where ExxonMobil and Qatar Petroleum have a license to explore and exploit.

“Following consultations of the Ministry with the consortium, further announcements will be made on the completion of the second phase of this exploration programme,” said the statement.

No official indication was given on findings from the first drill search but reportedly officials said the second drill well help verify results from the initial attempt which appears not so clear-cut.

However, there is speculation that no results were announced because “nothing exciting” was found but Energy Minister George Lakkotrypis cautioned that it takes many drills to seek out possible hydrocarbon deposits.

The Glafcos-1 well is around 15 kilometres north of the Delphine-1 with drilling not expected to be as deep this time around and operations are expected to wrap up next month.

Washington fully supports the right of Cyprus to exploit its natural wealth as it views energy development in the Eastern Mediterranean as a matter of priority, a senior US diplomat told reporters when visiting Nicosia last year.

US Assistant Secretary of State for Energy Resources Francis Fannon gave his backing when ExxonMobil and Qatar Petroleum began drilling in block 10 last November - a move Turkey is opposed to.

Fannon said: “We are very excited about the developments ongoing in the region…certainly happy to see US company involvement and continued opportunities.”

He said Washington had a “long-standing position of recognising Cyprus’ right to develop resource wealth in its EEZ…We will continue to advance Eastern Mediterranean energy as a priority.”

At the Delphine-1 well, drilling operations conducted by the Stena Icemax drillship were at a waterbed depth of 1,973 metres. A safety zone of 500 meters has been established around the platform and entering this area is prohibited.

A Navtex marine notice issued for the drilling operation is valid until February 25, 2019.

Lakkotrypis said Nicosia is in discussion with the TotalEni consortium over the next steps as the French-Italian venture is planning four-to-five drills offshore Cyprus between 2019-2020. Licenses are being prepared for an exploration drill in block 3 and a confirmation drill in the Calypso well (block 6) which is thought to show promising signs of significant hydrocarbon deposits.

Turkey has cautioned international oil companies not to drill for hydrocarbons off Cyprus or it will retaliate. It argues that Cyprus has no mandate to exploit oil and gas riches while the island is still divided and no peace deal in site.

Turkish President Recep Tayyip Erdogan has warned foreign energy companies not to “overstep the mark” in disputed waters off the Cypriot coast.

Ankara has also made it clear it will conduct energy search in waters around Cyprus.

Moreover, the Turkish Armed Forces are preparing their biggest military exercise in the sea from 27 February- 3 March, over a 462,000 sq.km. area.

It intends to send a message to Athens and Nicosia over their energy search ambitions. The large-scale military exercise is codenamed ‘Blue homeland’ and expected to take place in Turkey’s continental shelf, the Aegean and eastern Mediterranean.

The Italian state-controlled ENI had to abandon a scheduled drill for gas south of Cyprus in February 2018 due to a standoff with Turkish naval ships obstructing a drillship headed for block 3.

Texas-based Noble Energy in 2011 made the first discovery off Cyprus in the Aphrodite block estimated to contain around 4.5 trillion cubic feet of gas – it has yet to be commercialised.

Lakkotrypis said talks with the Aphrodite consortium are at an advanced stage over renegotiating the production sharing contract which would give the companies involved (Noble, Shell & Delek) a greater share of the profits.

The discovery of nearby Egypt’s huge Zohr offshore reservoir in 2015 has stoked interest that Cypriot waters hold the same riches.

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