Hydrocarbon Exploration Activities Offshore Cyprus

1. Hydrocarbon Exploration Activities Offshore Cyprus
Solon Kassinis
Director - Energy Service
Ministry of Commerce, Industry & Tourism
Republic of Cyprus
Delegation of French Oil & Gas Companies
Nicosia, 05 December 2012

2. REPUBLIC OF CYPRUS Energy Service – MCIT
Gas Discovery - Block 12
 Oct. 2008: Exploration Licence and PSC with Noble Energy International Ltd
 Sept. 2009: 469 sq km 3D seismic survey (Prospect: Aphrodite)
 Jun. 2011: 4,000 km 2D seismic survey + Grav & Mag Surveys
 Sept. 2011: First Exploratory Well
 Oct. 2011: First Renewal of the Exploration Licence – 25% Relinquishment

3. REPUBLIC OF CYPRUS Energy Service – MCIT
Gas Discovery - Block 12
Natural Gas Discovery 28 Dec. 2011
 7tcf gross mean estimated resources
 40 sq. miles field area
 5,860m total depth
 1,688m water depth

4. REPUBLIC OF CYPRUS Energy Service – MCIT
Gas Discovery - Next Steps: Appraisal Drilling
 An appraisal well is planned to be drilled in
Aphrodite field within the first quarter 2013
 5,950m total depth
 1,730m water depth
 Preparation of tenders for the appraisal drilling
under progress
 The whole appraisal process is anticipated to
be completed by early 2015
ENSCO 5006

5. REPUBLIC OF CYPRUS Energy Service – MCIT
Gas Discovery - Next Steps: Upstream Development
 Verification (exploratory) well drilling
 Reservoir appraisal and assessment
 Studies on the installation of offshore
and onshore equipment
 Production drilling and well completion
 Subsea system installation
 Deep water host commissioning
 Export pipeline installation

6. REPUBLIC OF CYPRUS Energy Service – MCIT
Gas Discovery - Next Steps: Pipelines
 Studies are underway regarding the pipeline routing from the gas field to Cyprus’ shore
 Gas Supply from Block 12 via pipeline: 2017-2018
 Interim Solution: Proposals for
the transport of natural gas to
Cyprus for meeting its
domestic demand under
evaluation
Subduction Zone
Submerged Canyon Complex

7. REPUBLIC OF CYPRUS Energy Service – MCIT
Gas Discovery - Next Steps: Downstream Development
 The political decision for the establishment of an onshore LNG plant has been taken
 Available land for the construction up to 3 trains (5MT/year each)
 Additional gas flows from
other upstream fields (EEZ of
the Republic of Cyprus and
the neighboring countries)
will be handled by the plant
 It will be the largest
investment in the island's
history
 Indicative timetable for
project competition: 2019
0 100 200 300 400
50
SCALE
PRELIM
IN
3T-
100m
FS/M
GH
AD
WST
CAN
CHEM
SEC
GH
ADT
R170
R380
R220

8. REPUBLIC OF CYPRUS Energy Service – MCIT
Gas Discovery - Next Steps: Downstream Development
LNG Export to Regasification Terminals

9. REPUBLIC OF CYPRUS Energy Service – MCIT
LEGEND
Existing pipeline
Planned pipeline
Tans-Med Gas Pipeline
Compressor Station
Gas Discovery - Next Steps: Downstream Development
Natural Gas Pipeline: Israel-Cyprus-Greece

10. REPUBLIC OF CYPRUS Energy Service – MCIT
Gas Discovery - Next Steps: Downstream Development
Undersea Electric Power Line: Israel-Cyprus-Greece

11. REPUBLIC OF CYPRUS Energy Service – MCIT
Natural Gas Supply to Europe (2011)
LNG
Qatar: 43 bcm
Algeria: 13 bcm
Nigeria: 14.5 bcm
Egypt: 4 bcm
Trinidad Tobago: 4 bcm
Norway: 2.5 bcm
Source: BP Statistical Review of World Energy
LNG Flows
Pipeline Gas Flows
Pipeline Gas
Russia: 115 bcm
Norway: 93 bcm
Algeria: 33 bcm

12. REPUBLIC OF CYPRUS Energy Service – MCIT
Natural Gas Demand in Europe - 2030
Source: Eurostat & Eurogas
Primary Energy Consumption (Μtoe)
Natural Gas Share in EU’s Primary Energy Consumption (%)

13. REPUBLIC OF CYPRUS Energy Service – MCIT
Natural Gas Demand in Europe - 2030
Source: Eurogas
Necessary Additional Natural Gas Supplies up to 2030
 Natural Gas Production within EU declines
 The share of Natural Gas in EU’s primary energy consumption will remain high i.e. mainly for
power generation purposes
 The exploitation of shale gas faces environmental challenges
The North East Mediterranean Region could be a new source for Natural Gas Supply to Europe

14. REPUBLIC OF CYPRUS Energy Service – MCIT
More Gas (Oil?) Discoveries are coming…
 2nd Licensing Round: 11 Feb. – 11 May 2012
 Available Blocks: 1-11 & 13
 Number of Applicants: 15 Companies/Consortia
 Number of Applications Submitted: 33
 Negotiation Phase
 Blocks 2 & 3: ENI-KOGAS
 Block 9: Total-Novatek-GPB
 Block 11: Total

15. REPUBLIC OF CYPRUS Energy Service – MCIT
2nd Licensing Round
 Block 2
 Water Depth: 248 - 2,051 m (average 1,575 m)
 Average Distance from Vasilikos: ~75 km
 Block 3
 Water Depth: 782 - 2,020 m (average 1,481 m)
 Average Distance from Vasilikos: ~125 km
 Block 9
 Water Depth: 1,887 - 2,351 m (average 2,108 m)
 Average Distance from Vasilikos: ~105 km
 Block 11
 Water Depth: 1,194 - 2,186 m (average 1,621 m)
 Average Distance from Vasilikos: ~190 km
 Extensive Existing Seismic Data:
 2D seismic grid 5x5km
 659 sq. km 3D (2007) seismic data in Block 3
 Proposed Working Program for Blocks 2, 3, 9 & 11:
 Extensive 2D & 3D seismic surveys
 1 / 2 exploratory wells for the first exploration
phase (3yrs)

16. REPUBLIC OF CYPRUS Energy Service – MCIT
Cyprus' Energy Profile Will Change Radically…
 New Exploration Licenses (more hydrocarbon discoveries)
 Proposals for gas supply as interim solution (2015)
 Gas Supply to Cyprus via Pipeline
 Establishment of LNG plant for
gas transport to EU and the
International Markets
 Other options for gas
monetization:
• Gas export pipeline
• GTL
• Petrochemicals
 Cyprus can develop the
necessary infrastructure for
providing services to drilling
activities

17. REPUBLIC OF CYPRUS Energy Service – MCIT
Thank you for your attention!