NICOSIA – The revision of timeframes concerning natural gas planning, included in the Memorandum of Understanding between Cyprus and its international lenders, was discussed Tuesday between the Troika mission in Cyprus and representatives of the Energy Ministry.
The meeting was held at the Planning Bureau, in Nicosia, in the presence of the Ministry’s Permanent Secretary Stelios Chimonas, and other officials.
The discussion focused on all issues the MoU provides for on this matter, “paragraph by paragraph”, as Chimonas put it. He said the discussion was very good and the Ministry was now waiting for the revised timeframes “which were too tight to be realistic”.
Chimonas noted that the members of the Troika received a strategy paper, which served as the basis of today’s discussion, covering four aspects; natural gas exports, domestic electricity market, domestic natural gas market and RES policy.
“We agreed with the Troika to have more regular contact” in order to be more productive, Chimonas stated.
He also said that the Cypriot side explained to the Troika members its expectations from natural gas exploitation. “Everybody understands the prospects from natural gas and we are all moving towards its proper exploitation, which will maximize gains for Cyprus and its economy”, he noted.
Asked if there was a policy shift on natural gas, Chimonas said that decisions on the matter are taken by the government, while Cyprus’ international lenders are interested to be briefed on its planning.
Cyprus and its international lenders (the European Commission, the European Central Bank and the IMF) agreed late March on a €10 billion bailout programme, which provided for a haircut on uninsured deposits in the island`s two largest banks. Cyprus Popular Bank, the island’s largest lender, would be wound down with its assets and insured deposits absorbed by Bank of Cyprus, which is currently under a consolidation procedure. The bailout was coupled with strict capital controls which economists say hamper economic activity.
Houston based Noble Energy began drilling in early July at the A-2 appraisal well location in block 12, which will take 60 to 90 days. In 2011 Noble announced that exploratory drilling in block 12`s A-1 well revealed an estimated resource of 5 trillion cubic feet (tcf) to 8 tcf, with a mean of 7 tcf. Noble Energy operates Block 12 with a 70 percent working interest. Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership each own 15 percent.
Apart from Noble Energy, Cyprus has also signed contracts with the ENI/KOGAS consortium for hydrocarbons exploration in blocks 2, 3 and 9, as well as with French TOTAL for blocks 10 and 11 in its Exclusive Economic Zone.

Published by: www.incyprus.com.cy