Filenews 4 February 2025
The expiration of exploitation licenses in blocks 2, 3 and 9 of the Cyprus Exclusive Economic Zone(EEZ) without renewal marks a new phase in Cyprus' energy planning. As confirmed by the Minister of Energy, George Papanastasiou, the explorations did not reveal exploitable natural gas deposits, leading to the completion of activities in these areas.
Readjustment of energy balances
This development means the withdrawal of the Korean state-owned company Kogas from the Cypriot EEZ, as it held 20% of the rights to the three blocks. Italy's Eni, which held a leading role in the joint venture, is now continuing its activity in blocks 6, 7, 8 and 11 in cooperation with France's Total, compared with seven blocks it previously owned.
According to Mr. Papanastasiou, the non-renewal of licenses is a natural development, as it was not a given that all plots would yield marketable resources. In blocks 2 and 9, seismic and geological studies did not find satisfactory evidence of natural gas, while in block 3 surveys were limited, partly due to obstruction by the Turkish navy in 2018.
Background and outlook
The licenses for the three blocks were issued in 2013, with their assignment to Eni Cyprus Limited and Kogas Cyprus Limited, while later Total E&P Cyprus BV was added. During the research phase, 2D and 3D seismic studies were carried out, as well as two exploratory boreholes in block 9. However, despite the great depths reached – 5,800 meters (Amathusa-1) and 5,485 meters (Onasagoras-1) – no exploitable deposits were identified.
This development reshapes the energy landscape of the Eastern Mediterranean, with Eni and Total readjusting their strategy and Cyprus rethinking the exploitation model of its marine resources.
