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    Estimates for Aphrodite Increased

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Summary

The estimates of the Aphrodite field increased to 4.54 Tcf. Cyprus is awaiting further results to assess the commercial viability of an onshore LNG terminal.

by: Karen Ayat

Posted in:

Top Stories, News By Country, Cyprus, East Med Focus

Estimates for Aphrodite Increased

Delek Group and Avner Oil and Gas, subsidiaries of Delek Drilling, reported a raise in their estimate for the amount of natural gas in the Aphrodite field located in Block 12 of Cyprus’ Exclusive Economic Zone to 4.54 Tcf. The field, discovered by Noble Energy in 2011, was previously estimated to hold between 3.6 to 6 Tcf of gas, with a mean of 5 Tcf.

The Government of Cyprus is currently awaiting the results of exploratory drilling conducted by ENI/KOGAS. A plan to construct an onshore LNG terminal on the Vassilikos coast was put on hold until further natural gas was encountered. TOTAL and Noble Energy also plan to search for more hydrocarbon off the island’s coast in 2015.

Experts estimate that Cyprus needs at least 12 Tcf to justify the commercial viability of the endeavour. An LNG facility would allow the transport of natural gas to export markets, including the EU and Asia.

Regional deals are also not to be dismissed. A recent tripartite meeting between President al-Sissi of Egypt, Greek Prime Minister Samaras and Cypriot President Anastasiades in Cairo led to the signing of the Cairo Declaration in which the three countries pledge future collaboration and a common vision for the energy future of the Eastern Mediterranean.

In September of this year, the minister of energy of Cyprus Yiorgos Lakkotrypis also met with Jordanian officials in Amman and stressed on the importance of a close cooperation between the two countries. Jordan`s Prime Minister expressed the Kingdom’s interest in establishing strong ties with Cyprus, including in the field of energy.

Cyprus, like Israel, is in fact considering exporting gas to immediate neighbours, including Egypt and Jordan, both in need for the hydrocarbon. Jordan suffered tremendously from the disruption in the flow of Egyptian gas in the aftermath of the 2011 Egyptian revolution. Egypt too is undergoing a severe energy crisis due to a growing consumption that is putting a strain on the meagre natural gas production. The success of the regional deals will depend on various factors and on top of them all the willingness to cooperate and transcend political differences.

Karen Ayat is an analyst and Associate Partner at Natural Gas Europe focused on energy geopolitics. She holds an LLM in Commercial Law from City University London and a Bachelor of Laws from Université Saint Joseph in Beirut. Email Karen karen@minoils.com Follow her on Twitter: @karenayat