TEXAS-based
Noble Energy is due to announce the results of its appraisaldrillingat
the Aphrodite gas field early next month, the energy minister said Tuesday.
The findings will pertain to such things asthe volumeand pressure
of the gas at the A-2 appraisal well.
The results will give an updated estimate of the quantities lying in the gas
field. Exploratorydrillingin late 2011 had found the Aphrodite
prospect has a gross mean average of 7 trillion cubic feet (tcf) of natural gas
with an estimated gross resource range of 5 to 8 trillion.
Noble at the time determined there was a 25 per cent probability of the gas
being lower than 5 tfc, the lower end of the estimate, and a 25 per cent chance
exceeding the higher bound of 8 tcf.
Follow-updrillingthis summer – which included flaring the gas on
board thedrillingplatform – was done to narrow down the estimate
gap.
The Houston-based corporation is also analysing samples from the A-2 well to
determine the quality of the fuel.
Noble, listed on the New YorkStock Exchange, is obliged to announcedrillingresults
within a certain timeframe.
The company is meanwhile conducting preliminary surveys of additional
prospective gas fields in its Block 12 concession.
Charles Ellinas, head of the Cyprus National Hydrocarbons Company (CNHC), said
the Americans are mulling additional exploratorydrillingat other
locations within Block 12 towards the end of next year.
Early indications suggest that a couple of smaller fields in Block 12 may hold
up to 2 tcf of gas each.
If true, that would boost the total size ofthe reservesin Block 12,
making commerciality even likelier. The more gas there is, the better the
chances of securing long-term buyers for it.
Cyprus
plans to build a gas liquefaction plant for
the processing, storage and export of LNG.
On Tuesday a Cypriot negotiating team gave a ministerial committee a progress
report on their talks with Noble.
The team is tasked with negotiating “the advent of natural gas from Block 12…
as soon as possible” and “the construction of a Liquefied Natural Gas plant at
Vasilikos and the drafting of any additional agreements that may be required
for the construction and operation of the plant.”
The team’s next meeting with Noble reps – one ofa series– is
scheduled for next week. The talks are confidential.
In July this year the government signed an MoU with Noble and its Israeli
partners Delek and Avner, a preliminary accord that is hoped will lead to a
final deal setting up a joint venture between the parties – a special-purpose
vehicle seeking investors for the estimated €7 to €8bn LNG plant.
The purpose of the current talks with Noble is to hammer out the details of
such a deal, with a target date of
December 31, 2013
specified for the completion and
signing of a follow-up agreement.
However, the deal will be cinched only once Noble makes a final investment
decision (FID) – which would come later.
Meanwhile companies with prospection licences in other licensed blocks are
expected to conduct initial, or exploratory,drillingin 2014.
Energy and trade minister Giorgos Lakkotrypis said one of the licensees would
begin exploratorydrillingin third of fourth quarter of 2014, and
another licensee in the first quarter of 2015.
The Italian-South Korean consortium of ENI and KOGAS has concessions on blocks
2, 3 and 9;
France
’s Total is licensed to explore
blocks 10 and 11.
On the other hydrocarbons front, officials from Vitol will reportedly be on the
island today for possible talks for interim gas supplies.
Vitol were ranked second-best in a tender issued by the Natural Gas Public
Company (DEFA), but their bid came back into play after negotiations between
DEFA and preferred bidder Itera fell through.
The tender concernsimportinglimited quantities of natural gas for
domestic electricity needs until such time as the island’s own reserves come
on-stream.
The government is also exploring the possibility of temporarilyimportinggas
from
Israel
’s Tamar field. The energy minister will be
visiting
Israel
next month for talks with officials.