NICOSIA – Cyprus is entering into negotiations with the international oil and gas consortium ENI-KOGAS on the licensing of blocks 5 and 6 within its Exclusive Economic Zone (EEZ), the Cyprus News Agency said on Thursday.
Quoting reliable sources, the agency said talks with ENI-KOGAS for the exploration of hydrocarbons in the two blocks was approved by cabinet on Thursday.
The timetable for concluding the talks is set for December 2.
Minister of Energy Yiorgos Lakkotrypis was authorised to extend the process if it is not concluded by the deadline, but there are positive signs agreement will be reached.
Lakkotrypis is expected to send a letter to the consortium within the day inviting them to enter into talks.
If the talks are not fruitful, the second licensing round will be considered as completed. The government will decide as to when it will proceed with a third licensing round for blocks which have not been licensed yet at a later date.
Preliminary results of a Noble Energy appraisal well for natural gas in Block 12 of Cyprus’ EEZ estimate hydrocarbon reserves between 3.6tcf and 6tcf with a gross mean resource of 5tcf. Noble has 70% working interest in Block 12, while Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership each have 15%.
In June the Cyprus government, Delek and Avner signed a Memorandum of Understanding (MoU) to construct a Liquefied Natural Gas (LNG) terminal in the Cyprus.
The ENI – KOGAS consortium which has signed a contract for hydrocarbons exploration in blocks 2, 3 and 9 within Cyprus’ EEZ is planning to drill in the third quarter of 2014, while Total, which has signed a contract for blocks 10 and 11, is also proceeding with drilling at the first quarter of 2015.

Published by: www.incyprus.philenews.com