The Council of Ministers approved, during its meeting yesterday, the Development and Production Plan for the "Kronos" reserve, in block 6 of the Cypriot EEZ. In the same block are the "Calypso" and "Zeus" fields, with Eni and TotalEnergies as the managing consortium.
From the drilling done in the block, ENI's calculations put the reserve on "Saturn" at about 2.5 trillion cubic feet (tcf) and another as much or slightly more in the Zeus block. Natural gas was also detected in a small amount in the Calypso block, but no reference was made by the operator ENI to a specific quantity.
The development plan submitted by the Eni – TotalEnergies consortium concerns the utilization at this stage only of the Saturn field, through its transport by pipeline to the neighbouring Egyptian field of Zohr and from there through existing infrastructure at the Damietta liquefaction terminal for export as LNG.
The Cypriot Government favoured the channelling of part of the deposit to the Egyptian market, with the expectation of securing a better price per unit. However, the private consortium insisted on exploiting the field through the Damietta terminal (generally under-operated due to a lack of natural gas), in which ENI holds a 50% stake and two Egyptian state-owned companies retain the other half of the shares.
Energy Minister Michalis Damianos said yesterday, according to KYPE, that a package of agreements was approved at the Cabinet meeting, including the basic terms of the Natural Gas Sale Agreement for the field in Egypt.
Damianos: FID follows
According to Mr. Damianos, "based on the approvals, the Eni – TotalEnergies Joint Venture is immediately proceeding with the final investment decision (FID) for the Kronos reserve, opening a new historical page for the energy course of Cyprus. After almost two decades of intensive exploration activities and significant discoveries, the country is taking the decisive step from research to production, with the aim of the first Cypriot natural gas reaching the market in 2028."
He added that the development of "Saturn" substantially strengthens the strategic position of Cyprus in a period of intense geopolitical developments, while at the same time, it comes to strengthen the network of partnerships that the country has developed with partners such as Egypt, France and Italy, further strengthening its geostrategic presence in the region.
According to KYPE, the second proposal approved during yesterday's meeting of the Council of Ministers concerns the basic terms of the Natural Gas Sale Agreement of the "Aphrodite" field, in Block 12 of the Cypriot EEZ, with the licensed consortium (Chevron, BG and NewMed Energy) looking forward to making an investment decision within 2027.
Landmark for the country
"Today's development is a milestone for the energy program of the Republic of Cyprus. Cyprus is now in the final stretch for the sustainable and commercial exploitation of its energy resources in its EEZ, making the Eastern Mediterranean an important energy hub and contributing, at the same time, to the EU's efforts to strengthen energy security through the diversification of sources and routes", said Mr. Damianos.
He added: "The development of deposits in the EEZ of the Republic of Cyprus marks the country's transition to an energy producer, strengthening its credibility against existing investors and licensees and creating the conditions for attracting new investments. In this way, a strong local energy industry is established that will support economic growth and the creation of new, quality jobs."
Nikolas for Papanastasiou and Damianos
The president of DIKO, Nikolas Papadopoulos, referring to yesterday's decision of the Cabinet, said that the party recognizes the contribution of all governments that have worked over time for the energy strategy of the Republic of Cyprus. "Today, however," he pointed out, "we must especially congratulate the former Minister of Energy Giorgos Papanastasiou and the current Minister of Energy Michalis Damianos, for their decisive contribution to this great national success."
For the president of DIKO, yesterday's development, "in contrast to the misery, despair and toxicity that some cultivate every day, shows what our people can achieve when they claim. (…) Cyprus can export its own natural gas in 2028 and as DIKO we will fight in the next Parliament so that every citizen, every household, every family gets a dividend from these successes of the Cypriot economy."
