Cyprus Announces Negotiations with ENI/KOGAS, Total for LNG Terminal

Cyprus gave the green light to negotiations between the consortium ENI/ KOGAS and the team Noble Energy/ Delek Drilling/ Avner Oil. 

The country’s decision also paves the way to negotiations between France’s Total and the consortium made up of the American group and the two Israel-based companies.  

The Ministry of Commerce, Industry and Tourism announced on Sunday the decision taken by the Council of Ministers on Friday.  

‘The Council of Ministers decided that the competent team, which negotiates with the Noble Energy International Ltd / Delek Drilling Ltd Partnership / Avner Oil Exploration Ltd Partnership consortium, begins immediately negotiations with the Italian-Korean consortium ENI / KOGAS, which has signed a contract for hydrocarbons exploration in blocks 2, 3 and 9 within Cyprus’ Exclusive Economic Zone, as well as with the French Total E&P Cyprus, that signed a contract for hydrocarbons exploration in blocks 10 and 11, on the agreements required for the construction and operation of a Liquefied Natural Gas (LNG) Terminal in Vasiliko,’ reads the statement announcing Cyprus’ decision. 

In July, Cyprus announced the signing of a Memorandum of Understanding between the country and the ENI/KOGAS consortium to explore ways of exploiting the potential gas reserves in the Cyprus Exclusive Economic Zone (EEC). The ENI/KOGAS is set to commence its drilling activities by the end of the summer. 

Successful encounters in the new fields would allow the construction of an onshore LNG terminals in coastal Vassilikos area.