2. Contents
1. The History
2. The Operations
3. Cyprus Energy Ports
4. Other Considerations
5. Questions / Discussion
3. 2
The History
• In 2012 a work group has been established to examine possible port
space and facilities to satisfy short – mid – long term needs with regards
to the research operations and exploitation of hydrocarbons in Cyprus’
Exclusive Economic Zone.
• The group was comprised by representatives from CPA, Energy
Department, Department of Urbanism and Housing and the Shipping
agents.
• 3 prospective areas have been identified
• The area East of Larnaca Port
• Available space at Vasiliko Port
• The area South Limassol Port (Merras Zakaki)
• The selected scenario was the area South of Limassol Port because of its
long area and because it is adjacent to the port. The other two scenarios
have been rejected because Larnaca was destined as a cruise port and
Vasiliko area was destined for the LNG plan.
4. 3
The History cont.
• Cyprus characteristics as an EU member
state having a developed business system,
as well as the infrastructure and services
provided, render the conditions for the
implementation of investments for the
exploitation of hydrocarbons attractive.
• Beyond the satisfaction of inland needs
(research and exploitation in Cyprus EEZ),
Cyprus is expected to cover similar needs
from the extended market of the South
Eastern Mediterranean.
• Estimations indicate the existence of 122
TCF of Natural Gas, while the stocks in
Petroleum are estimated to 1.68 million
barrels.
• For the Nile Delta Basin estimations talk
for the existence of 233 TCF Natural Gas
and 1.76 billion barrels of petrol.
5. 4
The History cont.
• In 2008 within the scope of the 1st round of
permits for the exploitation in Cyprus EEZ the
republic of Cyprus has allowed ‘Noble Energy
International Ltd’ to perform research in plot 12
• The company has performed in 2011 its drilling
research using, through the company EDT
Agency Services Ltd, Limassol Port as a base
for support, supply and service of the platform
in general
• With the completion of the drilling operations
the company has discovered the amount of
approximately 3.5 TCF.
• Apart from Noble’s energy operations in plot
12, the Republic has issued in 2012 a second
round of permits.
• Plot 2 and 3: ENI (Italy) and KOGAS (S.
Korea)
• Plot 9: TOTAL (France) and Novatec
(Russia)
• Plot 11: TOTAL (France)
6. 5
The energy prospects
The discovery of significant hydrocarbons reserves provides for Cyprus a unique opportunity to become a
regional energy centre
8. 7
The operations
• The importance of Ports in research and drilling
operations for Hydrocarbons.
• The existence of adequate port area is crucial
in the development operations of hydrocarbon
exploitation.
• For each platform the supply of adequate
supporting services is required. These services
are needed 24 / 7 from urban port area.
• Some of the operations required by the
platforms from supporting companies based in
Ports include:
• Supplies with the use of Tugs /
Helicopters
• Change of workforce and movement of
employees (every 28 days approx.)
• Storage and supply of mud
• Storage and supply of cementing
• Storage, supply, maintenance and fixing
of casing equipment for the drilling
• Supply of fuel for the platform operation
• Berthing (quay facility) for the tugs /
boats that support and supply the
platform
• Waste treatment from drilling operations
and exploitations
9. 8
Upstream Oil & Gas Logistics
Upstream oil and gas logistics segments into three core activities – offshore field logistics, onshore
field logistics and international freight movement
INTERNATIONAL FREIGHT
MOVEMENT
ONSHORE
OILFIELD
LOGISTICS
$10% $10% $40%
$40%
OFFSHORE
OILFIELD
LOGISTICS
10. 9
Typical requirements of a multi-user base
High Bay fabrication
facility, yard and rail to
quayside
Warehousing, Machine
shops, etc.
Open
storage
Pipe inspection
Car park Gas oil storage in
concrete bund
Potable
Water
Spill
Response
Equipment
Bulks, water and marine gas oil
ducted to quayside delivery
points
Bulk silos
and mud
plant
Minimum 45m
clear to
quayside
Storage area
for Anchors
and Chains
Heavy lift pad
Offices
11. 10
Supply Base Management typical requirements
Quayside Operations Transport Management Port Management
Materials ManagementCritical Spares
Materials and Systems
Bulk Management
Marine Fuel & Lubes
Offshore Operations
Client IntegrationIT Systems
Manifesting
15. 14
Environmental and Waste Management Services
OFFSHORE WASTE
MANAGEMENT
TRANSPORT
RETURNS ASHORE
ONSHORE
SERVICES
SEGREGATION OFFSHORE
OFFSHORE TRAINING
24 / 7 HELP - LINE
STATISTICS
COMPLIANCE
MONITORING & SUPPORT
WASTE CONTAINMENT
BULK REMOVALS
LEGAL COMPLIANCE
TANK CLEANING
CUTTINGS PROCESSING
TANKER SERVICES
HAZARDOUS WASTE
TREATMENT
DISPOSAL
PRODUCT RECOVERY
16. 15
Waste Management
Collection, sorting and transport for disposal
– Hazardous waste
– Non-hazardous
– Domestic waste
– Scrap metal
– Oily water
– Drilling muds and chemicals
Provision of
– Licenses
– Waste sorting station
– Sortation Process
– CCU Fleet
– Specialised Collection vehicles and
containers
17. 16
Supply Base Examples
Galeota, Trinidad
Guiria, Larnaca, Venezuela
St. Johns Newfoundland
Snake Island, Lagos
Takoradi, Ghana
Bautino, Kazakhstan
Mtwara, Tanzania
Sandnessjohn, Norway
Sohar & Duqm, Oman
Darwin, Australia
Korsakov, Sakhalin
19. 18
Larnaca Port
• Larnaca Port has been servicing the Oil & Gas
industry since 2013
• Due to the fact that at the time Larnaca was to
become a cruise Port, temporary licenses have
been given to the companies to operate until
august 2016.
• After long periods of protests from the people of
Larnaca, the council of ministers has decided to
relocate the companies to areas that CPA will
point out
• In Larnaca Noble energy is effectively utilising
6640 m2 of Paved area, 3010 m2 of store area
and 200 m2 of office area.
• Medserve is effectively utilising 20000 m2 of non
paved area, 10,000 of paved area, 3870 m2 of
store area and 2113 m2 outside of store area.
• Multimarine is effectively utilising 12500 m2 of
non paved area (see diagram)
20. 19
Larnaca Port cont.
The ENI Logistics Base, inside the Larnaca Port, is organized into the following main logistics areas
(ENI Cyprus Ltd, 2014c and ENI E&P Div. LOGIS, 2014):
• office accommodation and office equipment;
• berthing and quay facilities;
• liquid mud plant and bulk storage facilities;
• open yard area, including a covered pipe inspection facility with cleaning bay;
• existing covered warehouse;
• chemical storage;
• covered waste storage area;
• equipment marshalling area; and
• Cargo Container Unit (CCU).
All installations are situated in the main quay except for the chemical storage and the covered
warehouse, which are situated in the south quay. The surface covered by the base including all
installations is estimated to 36,211 m2.
Operations within the base can be divided into two main categories. Firstly, logistics operations
entailing the storage and handling of all equipment, materials intended for use onboard the
drilling platforms or ships and secondly liquid mud production.
21. 20
Larnaca Port Logistics Operations
1. Storage and handling of Chemical substances
The chemical storage is composed of two different facilities:
• an area of about 1,000 m2, within the existing
warehouse, for the storage and handling of dry
chemical products in big bags;
• a new shed of about 350 m2, to be located close to
the existing warehouse, for the storage and handling
of wet chemical products in drums, tank containers
and metal barrels.
• The existing warehouse is located in the southern side of
Larnaca Port, along the breakwater quay.
• The area of the warehouse which is assigned for the storage
of dry chemical products is approximately 1,000 m2.
• Suitable chemical protected shed, located in proximity
(southward) of the existing warehouse, is used for the storage
and handling of chemical products in drums, tank containers
and metal barrels.
• The shed dimensions are approximately 27 m x 13 m (about
350 m2) with a minimum clearance of 5 m and a roof slope
15% for rain water. It is a metallic structure provided with an
impermeable concrete basement and a corrugated covering
sheet, open on all sides in order to guarantee the proper
ventilation.
22. 21
Larnaca Port Logistics Operations
2. Storage and handling of consumables, casings, drill pipe pipes and materials associated with drilling operations.
Such operations will comprise:
• loading and unloading of, drill collar, tools and other drilling equipment, as required,
• carriage of typical oilfield goods and materials
• loading of fuel oil, water for supporting drilling activities and potable water,
• transfer of liquid mud, palletized mud materials, bulk mud materials, bulk cement and
• other bulk material.
A small water channel is found next to the steel casings cleaning area. Provision has been made
in terms of bunds to avoid drainage of the shed escaping in the channel.
3. Handling of explosives
Drilling operations require the use of small quantities of explosives. These are to be transferred from storage locations outside the port
area directly for loading on the offshore support vessel with minimal time of stay within port limits. According to the Cypriot authorities
each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the
European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR).
The explosives mentioned above will not come back to the Logistics Base. This, together with the strict context for safe and secure
transportation to the Base minimise the risk of accident and exposure.According to a first estimation the quantities of explosives to be
used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg. More specifically the estimated amount of
explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one
truck at the beginning of operations.
Over the the full campaign it will remain on the rig. On the basis of this figure the envisaged
explosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transit
the port during a three year period. Each transportation of the explosives is scheduled to be
especially approved and convoyed by the police at all times and the trucks will be driven by
specially authorized personnel (licensed ADR drivers).
23. 22
Larnaca Port Logistics Operations
3. Handling of radioactive materials
Radioactive sources are to be used for radiography in drilling operations. Such materials will be transported directly from designated
storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits.
It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole
transportation process.
Radioactive materials are very commonly used in various sectors. The quantity and strength of such materials used in the current
project are similarly of low risk.
4. Handling of wastes associated with drilling operations.
At the Logistics Base, an exclusive space of about 200 m2, segregated by a fence is assigned in the pipe yard area, to temporary
accommodate the produced waste. The is paved with concrete in order to avoid any kind of possible contamination to the soil, equipped
with containment wall and dedicated drainage system with collection pit. This space is intended for waste produced in the onshore base
and only for their temporary storage. The waste produced in the Logistic base will be collected in appropriate containers and
in reasonable quantities. Wastes will be immediately delivered to authorized operator according
to the Waste Law (L185 (1)/2011
24. 23
Larnaca Port Liquid mud production
The Liquid Mud Plant (LMP) (1,530 m²) is designed
to provide the offshore drilling unit with the following
fluids, typically used for drilling operation (“drilling
mud”):
• brine (salty water) typically composed of water
and salt (sodium chloride and/or potassium
chloride and/or calcium chloride) used for the
initial riser less section of the offshore wells or
as completion fluid after the drilling operations;
• Water Based Muds4 (WBMs), typically
composed of fresh water, salt and/or
bentonite/barite and additives;
• Low Toxicity Oil Based Mud5 (LTOBM) typically
composed of low-toxic and low-aromatic base
oil, barite and additives.
The process carried out in the LMP includes:
• storage of base oil, mud and bulk (powder);
• mud premixing (brine, WBM and LTOBM); and
• mud regeneration (LTOBM) (if needed).
25. 24
Larnaca Port Liquid mud production
Bulk (Powder) Storage Facilities
The barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material
needed for the operations, in particular barite and bentonite. Barite and bentonite will be provided by trucks in big
bags (1-1.5 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred
to the LMP/Bulk facility as needed; in the plant the big bags will be cut through hoppers and stored in the silos; It is
anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed and
will be fitted with vacuum pump to minimise dispersal of dust in the atmosphere.
Empty big bags will be sent for disposal in accordance to local regulations. The bulk facility has a
capacity of approximately 640 t of bulk materials and is equipped with lines and fittings to load
supply vessels and receive bulk material from supply vessels as well. The bulk facilities include the following
equipment:
The LMP is also provided with transfer lines, consisting of flexible hoses aimed at pumping the mud and bulk
materials to the PSV without interference with LMP operations. The distance from the mud plant to the PSVs berthing
area is approximately 100 meters.
According to the operator’s procedures the piping shall be regularly inspected and loading/offloading operation of the
supply vessels manned in order to avoid undetected spill. Dedicated equipment will be available at the Logistic base
for a prompt response in case of any release to the marine environment and the Base personnel trained to its use.
26. 25
Limassol Port
• Limassol Port has been the first
port to accommodate oil & gas
companies in 2011
• It has mainly served Noble
energy in its first drilling
• The companies have chosen to
relocate in Larnaca mainly due
to the fact that Limassol has
been too congested and busy
compare to Larnaca
• CPA has provided the companies
with Long – mid – short term
option with regards to their
relocation at Limassol port (see
diagram).
27. 26
Vasiliko Port
• Although Vasiliko has always been the Industrial Port of Cyprus, it is not deemed
adequate to support drilling operations mainly due to the presence of heavy industrial
activity and lack of available space
• The ministry of Energy is planning to implement the LNG Pant project in the area.
29. 28
Other Considerations
• Preparation of a High Level Master Plan regarding the Impact from
Hydrocarbon Development at the port of Larnaca
• Compiled by Lloyd’s register on behalf of Larnaca Municipality on October
2014
• Recommendations include:
• The specification of control mechanisms
• Common operation of all companies for the management of NORM and
TENORM materials
• Awareness and communication of local community for operations
• Communication campaign
• In case of maximization of operations, relocation to an industrial area
should be preferred.
• Complains / suggestion collection mechanism
• Training sessions for the public
• Cooperation between cruise companies, oil companies and CPA
• Optimization of mud plant through synergies between all companies