Filenews 21 July 2022
The continuation of the development works of the "Aphrodite" deposit with an additional drilling in the first quarter of 2023 was announced on Thursday by the Minister of Energy, Commerce and Industry Natasa Pilides, after her meeting in the Parliament, with the President of the House of Representatives Annita Demetriou and the President for Research and Production in the Middle East, Africa and South America of the company Chevron, Clay Nef.
As Stated by Mrs. Pilides, the drilling will have a confirmatory character in terms of the exact quantities of the deposit, but it will also be used at a later stage for the development of the deposit.
In addition, the Minister of Energy said that she had the opportunity to discuss with the representative of the AMERICAN company the scenarios that are being examined for the transport of natural gas to Egypt, clarifying that out of the six initial examined scenarios, the two sides have now been limited to four, while by the end of the year they are expected to come up with the final scenario which will be examined by the Ministry's Hydrocarbons Service in order to be approved for implementation.
According to Ms. Pilides, the subject of the discussion between the two sides was also the changes in the world scene given the invasion of Russia in Ukraine and the possibility of accelerating the participation of Cyprus as a partner in the efforts of Israel and Egypt to supply the European Union through the work already underway in the region.
On behalf of Chevron, Mr. Nef stated that he had a very good meeting with the Minister, having the opportunity to inform her about the progress of the "Aphrodite" project but also about the company's plan to proceed with a new drilling, adding that Chevron will come up with the preferred development alternatives in the coming months.
"I just want to say how important Cyprus is for Chevron and the Eastern Mediterranean region. We believe that the "Aphrodite" project can play a key role in providing additional gas supplies to the region, and we look forward to working with our partners, as well as with the Minister and her team, as we continue to make progress on the project. We believe that this project will contribute significantly to the supply of natural gas to the region and beyond, it is extremely important to have affordable and reliable energy and we believe that Aphrodite will contribute to this in the future", he said.
Asked about possible developments regarding the Israeli "Isai" deposit, the Minister of Energy said that communication between the competent ministries of the two countries is progressing, with the Cypriot side recently receiving some additional information about the expert who will act on behalf of the two governments, adding that they are in the process of determining how this expert will work and the information that will be given and will be given they must be binding on each side.
The Ministry of Energy intends, in addition to submitting its comments, to discuss a private meeting with the Israeli Minister in order to discuss all the details, continued Mrs. Pilides, adding that she has discussed these data with Chevron, which is in line with the proposed actions, while adding that it has been decided to start work on technical teams, which will analyze the data during the whole process.
When asked about the "Glafkos" deposit and the fact that there is still no indication from Exxon Mobil for its exact quantities, the Minister said that the need has arisen for some additional seismic surveys that have been routed and all the relevant permits have been provided for the research vessel to start its work in the next few days, which are expected to be completed within the next three months. "It is a process that unfortunately takes time, but it is important because quantities may be added to the findings," he added.
Asked what are the four scenarios currently under consideration for the transport of gas to Egypt, Ms. Pilides replied that due to specific confidentiality agreements it cannot be extended in detail, but said that the scenarios have to do either with the interconnection of the "Aphrodite" deposit with already existing infrastructure in the region, or with a solution that specifically concerns the interconnection of "Aphrodite" with Indku in Egypt.
When asked about the exact time period of the new drilling, the Minister replied that the planning foresees the start of the process in the first quarter of 2023, while regarding the next milestones for the final investment decision, Mrs. Pilides said that the same remain as they have been defined in the relevant contract. "We are trying to work on the faster implementation of these milestones because they provide some flexibility, but we will do everything we can to take advantage of the opportunities we are seeing now with the rise in prices and the green transition at the European level," he added.
Asked if she perceived the feeling on chevron's part that she would try to speed up the procedures given the high demand for natural gas and alternative energy sources, the Minister replied that already during the pandemic there was a climate of uncertainty regarding both the conditions through which drilling and various activities could be carried out, but also the future of the market.
"Now there is a much clearer view, we also discussed that we had some very positive comments from the EU and the Commissioner for Energy, who confirmed that as a transitional fuel gas can play a role by 2050, which is a very important confirmation for us, because it gives companies a more reliable timetable, so that they know that the project is definitely sustainable. As a result, there is a willingness to accelerate and we have certainly made great progress in recent months", continued Ms. Pilides, adding that the two sides agreed that they must have the agreed development plan ready by the end of the year or the beginning of next year, so that it can be evaluated and implemented. "Once that's done, we can move forward with the marketing discussions because that's a key point in finalizing the timeline for when the gas will be available," he said.
In another question about American reports for a second confirmatory drilling in "Glafkos" by Exxon Mobil in 2023, as well as earlier statements by the Minister about new seismic surveys in the deposit and whether the data for the results of the surveys in plot 5 will be clarified, Mrs. Pilides said that block 5 comes to supplement the quantities but also to potentially open up much greater prospects regarding block 10.
"Certainly the seismic studies that will be done in the coming period are of great importance to clarify how the company will proceed. Confirmatory drilling may not be required for block 10, depending on the results of the seismic studies. Certainly within the next few years there will be some drilling, possibly in block 5 and not in 10," he added.
Finally, asked if the joint development of "Aphrodite" with the Israeli "Leviathan" deposit was discussed, the Minister of Energy said that the individual development of "Aphrodite" remains on the table of data and the initial development plans, at the same time the possibility of joint development with "Leviathan" has been discussed.
"Everything will depend on the final plan that will be presented to us in the last quarter of the year. What is important for us and for Chevron is to identify the fastest and most beneficial option for both parties," he concluded.
