Noble Energy, Delek Drilling and Avner Oil Declare Aphrodite Commercial
Noble Energy, Delek Drilling and Avner Oil Exploration have declared the commerciality of the Aphrodite field located in Block 12 of Cyprus' Exclusive Economic Zone (EEZ) and estimated at 4.54 trillion cubic feet (Tcf). The announcement is an important milestone for Cyprus towards the monetisation of its offshore riches. Cyprus' Minister of Energy Yiorgos Lakkotrypis welcomed the news, important for the development of Cyprus' hydrocarbon resources and the island's entry into the export market.
Discovered in 2011 by Texan Noble Energy, Aphrodite is Cyprus' first natural gas discovery. A development plan for the field is expected to be issued in the weeks to come. The Italian-South Korean consortium ENI-KOGAS has also been searching for gas in Block 9 of the island's EEZ but has failed to encounter any recoverable amount of the hydrocarbon. Licensed to drill in Blocks 10 and 11 of the island's EEZ, France's TOTAL has been hesitant to commence its exploration activities in Cypriot waters for not having identified "drillable prospects" according to a statement issued by the company in January of this year.
The announcement of the commerciality of the Aphrodite field is very significant for the Eastern Mediterranean's country transition into a net natural gas producer. The development of the field will ensure a domestic supply of natural gas and exports to Cyprus' neighbours. The government of Cyprus has been engaged in talks to export natural gas to Jordan and Egypt via undersea pipelines, both in desperate need for natural gas. Exporting the gas to Egypt would also provide Cyprus with the opportunity to use Egypt's unused export terminals to reach far-reaching markets.
Cyprus' original plan to build an onshore LNG terminal on its Vassilikos coast failed to materialise due to Cyprus' lack of luck in discovering sufficient quantities of natural gas that would justify the commercial viability of the multi-billion dollar endeavour. The declaration of commerciality of Aphrodite is an important step in Cyprus' path towards natural gas production. Additional gas discoveries would widen Cyprus' options in terms of export solutions.
Karen Ayat is an analyst and Associate Partner at Natural Gas Europe focused on energy geopolitics. Karen is also a co-founder of the Lebanese Oil and Gas Initiative (LOGI). She holds an LLM in Commercial Law from City University London and a Bachelor of Laws from Université Saint Joseph in Beirut. Email Karen karen@minoils.com Follow her on Twitter: @karenayat