Oil & Gas News

May 15, 2014

The Hydrocarbons Public Company (DEFA) announced on 14 April that it had received four proposals to supply natural gas to the island as an interim solution for power generation before its own gas reserves come available. Details of the bidders were not released due to confidentiality agreements. However, the companies themselves have made their interest known. The partners developing Israel’s offshore Leviathan natural gas field (The Delek Group and Noble Energy) have bid for the project, as have the Dutch-owned oil trader Vitol, a group led by Azeri state oil company SOCAR, and a Greek consortium. Based on its initial invitation for proposals, issued in January, it is seeking a supply line for up to 10 years, commencing in January 2016.

Meanwhile, Cyprus and Israel have signed an agreement on the protection of confidential information regarding the hydrocarbons discovered in Block 12 of Cyprus’ Exclusive Economic Zone (EEZ) and the adjacent Block Ishai in Israel’s EEZ. The agreement was signed by the Deputy Permanent Secretary of the Cypriot Ministry of Foreign Affairs, Ambassador Tasos Tzionis and the Ambassador of Israel Michael Harari. The confidential information will be exchanged for the purpose of assisting each Government in forming an opinion on the extent of hydrocarbons discovered in each of the specific Blocks. The agreement forms part of the external dimension of Cyprus’ energy policy, which, inter alia, promotes mutually beneficial cooperation with all the countries of the Eastern Mediterranean.

Finally, the Minister of Communications & Works, Marios Demetriades, has said that a strategic study is being carried out on the use of Cyprus’ ports by oil and gas companies drilling for natural gas within the country’s EEZ. The Government has already provided premises in Larnaca port to ENI’s subcontractor MEDSEV and it will also provide Noble Energy with the areas it requires for its infrastructure purposes. In the context of the strategic study on the use of the island’s ports, Demetriades has already met with all the interested companies and requested that they state their medium- and long-term needs with regard to natural gas exploration and exploitation.

www.investcyprus.org.cy/easyconsole.cfm/id/626