Noble Energy: Aphrodite has Potential to Supply the Domestic Market , Meet Strong Regional Demand
In Cyprus, the focus seems to solely on the the Aphrodite field. The disappointing results released by the Italian-North Korean consortium ENI/KOGAS, and TOTAL’s temporary withdrawal from the island’s Exclusive Economic Zone, have eclipsed the island’s ambition to turn into a regional natural gas hub and instead shifted the focus on the development of the Aphrodite field. Natural Gas Europe spoke to Noble Energy, the Texan company involved in Cypriot and Israeli waters, to learn more about the island’s future plans.
Noble Energy told Natural Gas Europe that the Aphrodite field, discovered in 2011 and estimated at 4.54 Tcf, has the potential to supply the domestic market and help meet strong regional demand. Noble added the Texan company was looking forward to working closely with the government and the people of Cyprus to achieve the economic benefits that these resources can provide, as well as increase energy security.
At this stage, Noble is conducting various meetings with the Government of Cyprus to progress the development plan for Aphrodite and is working towards submitting a draft proposal in the near future that will open the door to declaring Aphrodite commercial. Noble Energy did not dismiss plans of future gas explorations in the island’s maritime zone, stating that further drilling would be discussed in conjunction with development plan with the government of Cyprus.
Cyprus has been eyeing regional markets, including Jordan and Egypt, to export its natural gas resources. Neighbouring Israel has made significant gas discoveries in its waters and is also engaged in talks to export to immediate neighbours, including Egypt, Jordan and the Palestinian Authority. Delayed decision-making and ongoing domestic debates have prevented Israel from finalising export deals and accelerating production from the 21 Tcf Leviathan field. Lebanon is also believed to hold substantial hydrocarbon resources, but the political vacuum in the country has caused several postponing of the country’s first licensing round despite considerable interest from major oil and gas companies expressed at the country’s pre-qualification round in 2013.
The Eastern Mediterranean region is facing major challenges in its path towards production and export of natural gas. Whilst Cyprus’ most important setback is its bad luck in its exploration activities, Israel must resolve domestic disputes to move closer to the production of its Leviathan field and secure regional deals. Lebanon has a long way to go as it struggles to issue crucial pieces of legislation that will allow the launching the country’s first bidding round and exploration activities to commence.
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