ExxonMobil announces a discovery of 5 to 8 trillion cubic feet in Cyprus’ EEZ (2)

ExxonMobil will spend the next months analysing the results of Glaucus 1 well to better determine the potential after a discovery of a natural gas resource of approximately 5 to 8 trillion cubic feet in Cyprus’ offshore block 10.

Minister of Energy, Yorgos Lakkotrypis announced in a press conference together with Tristan Aspray, ExxonMobil Vice President of Exploration for Europe that the resource was the largest discovery so far discovered in Cyprus’ Exclusive Economic Zone (EEZ) and according to official data one of the greatest discoveries in the world in recent years. The results, he added, demonstrate the potential of our EEZ because it is a high-quality reservoir.

They also add to the Republic of Cyprus reserves and to the original deposits of the EU, highlighting the role of the country as an alternative source of supply for the Union “.

According to information provided by ExxonMobil officials, the discovery is the second largest worldwide in the last 12 months and the third in the last two years. Moreover, the first drilling in block 10, carried out in Delphyne-1, target between November 2018 and January 2019, did not identify exploitable quantities of natural gas.

Answering questions, Aspray said we will certainly be spending the next period of several months to analyse the results of Glaucus 1 well to better determine that potential as part of the appraisal plan. To a question if there are any other potential targets in block 10, Apray said they will look at the data gathered from the two wells to look for potential exploration opportunities in the block.

Asked what resource would be sufficient for an LGN plant, Aspray did not give a certain figure, adding that would depend on lot of different factors, such as the actual reservoir, the quality, the resource density, away from any wells they drill and the development solution that they have chosen.

As I said before, typically if you look at active LNG projects today, they are developing resources likely in excess of 10 or perhaps 15 tcf. That is a very broad average, it varies enormously. I cannot give you a specific number but obviously the higher the better, he remarked.

On the LNG Plant, Aspray said they are at the start of a long journey here towards potential development. In general, we are going to spend the next few months analysing all these results before we can get into any specific development plan.

Typically, LNG projects particularly, he said, require resources likely larger than single deposits but clearly we are just getting started with our evaluation of what we still regard as a frontier area. The ExxonMobil official said there is still potential for more discoveries in our own block and perhaps those of others so early days in terms of determining the total resource potential.

He reminded that his company always said that if we were to find sufficient resource preferred option would be to bring that gas ashore in Cyprus to underpin exactly the sort of development you mentioned an LNG plant. That’s still an option for the future, we haven’t discounted that it is still there as a future possibility.

The Cypriot minister, answering a question about the LNG plant said we believe we have good grounds to look into the issue in a more holistic manner.

Surely, he continued, we will need more quantities but the discovery sets us on a foundation where we can work from.

Asked whether in the light of this discovery ExxonMobil will be looking to bid for more blocks in the Cypriot EEZ, Aspray said we are not limiting our search in block 10, we would be interested in other opportunities offshore Cyprus and indeed the whole Eastern Mediterranean and recalled that Exxon was awarded an exploration license in Egypt’s block 3.

Replying to a question whether Exxon is concerned over the tension created by a neighbouring country, Aspray said we obviously have been aware of the geopolitical tensions in this area, they are not new but ultimately we have to be focused as a contractor to the government to evaluate the block that we secured in the last tender, block 10, which we’ve done. We are stressing that block 10 itself is not in disputed waters, he remarked.

Source: Cyprus News Agency