ENI-TOTAL synergy on block “11” the best that could happen, says Executive Director of CHC

Executive Director of Cyprus Hydrocarbons Company (CHC) Panos Kelamis said Wednesday that he was very optimistic as to the prospects of Cyprus Exclusive Economic Zone (EEZ), following the successful completion of negotiations for the third licensing round.

Speaking to CNA, he also said that the synergy between energy companies ENI and TOTAL is the best that could happen to the block 11.

“The prospects are very good,” noted the Greek former staff member of Saudi Aramco, referring to the successful completion of negotiations for licensing of blocks “6”, “8” and “10” of the Cyprus EEZ, announced Tuesday by the Minister of Energy George Lakkotrypis. He added that from his background on the exploration he is “too optimistic”, but noted that “we should all have patience.”

The companies selected are the consortium of ENI and TOTAL for Block “6,” ENI for Block “8” and the consortium of ExxonMobil and Qatar Petroleum for Block “10”. On March 17 the Cabinet is expected to approve the agreements. The Republic of Cyprus will have revenue of 103.5 million euros from the signing of the contracts.

“It is important that the negotiations for the third licensing round have finished successfully and when we have companies of the range of Qatar Petroleum, Exxon Mobil, ENI and TOTAL, comments are unnecessary,” he said.

Regarding the approval of the Cabinet of the application of TOTAL to assign 50% of its rights in Block “11” to ENI, he said that this development is the best possible because ENIs expertise on the geology and geophysics of Egypts “Zohr”. This knowledge, he added will help, not only to the exploration and development of the block, but also to the drilling. He also said that the synergy of the two companies in block 11 is to the benefit not only of ENI and TOTAL but also to the benefit of the Republic of Cyprus.

He furthermore said he was optimistic that Cyprus will overcome any obstacles regarding the drilling, pointing out that there is goodwill from all actors to contribute in order Cyprus to move forward successfully.

TOTAL has decided to reconsider the potential of block”11″ after the discovery of Egypts giant field “Zohr” in 2015, just 6 km from Cyprus block. TOTAL announced its intention to proceed with drilling in Block “11” in June 2017.

Source: Cyprus News Agency