After yesterday’s announcements for the discovery of a new field in the Kronos target, in block 6 of the Cypriot EEZ, with an estimated capacity of 2.5 trillion cubic feet (tcf), the total potential capacity of Cyprus in natural gas amounts to 11.7 tcf up to 14 .7 tcf (4.2 Venus, 5-8 Glaucus, 2.5 Saturn). Any quantity confirmed in the Calypso field, at 6, is not counted, as ENI announced in 2018 that it had identified a deposit but has not yet made an official estimate of the quantity, which from Cypriot sources is unofficially estimated between 1 and 3 tcf, without being certain that it is recoverable, due to peculiarities in the seabed.
Of the total 11.7 – 14.7 tcf estimated reserves from previous drilling, only 4.2 tcf of Aphrodite is partially confirmed pending a second confirmation drill, which may be conducted by Chevron within 2023.
We remind you that for ExxonMobil’s confirmatory drilling in the Glafkos field (completed last March) no announcement was made regarding the potential of the field, which was initially estimated between 5 and 8 tcf.
Theoretically, the amount of natural gas estimated to be in the depths of Saturn is sufficient to cover Cyprus’s current needs for power generation fuel for 60-70 years, while for almost twice as long, Aphrodite could cover the power generation needs. However, the Government, ministry technocrats and the companies themselves consider that it is economically unprofitable to transport the “Cypriot” natural gas exclusively on land for the production of electricity, without first extracting the reserves as part of a wider exploitation plan, with the sale of most quantities to other buyers. Therefore, as pointed out yesterday by the Minister of Energy, Natasa Pileidou, the transport of the gas to Egypt for liquefaction and sale to (probably European) buyers remains the prevailing scenario.
As is obvious, the new deposit is a little more than half of the Aphrodite deposit, however, according to Ms. Pileidou, it is exploitable, as ENI judges its quality to be from good to excellent. However, EMI itself states in its announcement that, firstly, the estimated quantity is 2.5 tcf “gas in place”, which obviously means that the effort to recover it for commercial exploitation will reduce the final quantities that will be pumped. and, secondly, that there is significant additional upside, which will be explored by new drilling in the area. It is not clear from the announcement if EMI means the confirmatory drilling that will be done on Saturn at some point or if it means the new drilling that – as the energy minister mentioned – the company started yesterday at the Zeus 1 target, near Saturn 1.
The fact that the ENI – Total joint venture has already started “drilling” in the same block (6) and very close to Kronos 1 (and therefore to Calypso) is a clear indication that the company believes that the possibility of finding new deposits is also visible, which may also be small or micro-medium, but will allow it, due to their proximity, to exploit them with synergies, reducing production costs and increasing the chances of selling to important buyers. It should not escape attention that Glaukos, which under certain conditions could develop into the largest deposit in Cyprus, is relatively close to the deposits and the new target of ENI – Total in block 6.
Pileidou: Saturn will help Aphrodite and Glaucus
“I am pleased to announce the completion of the drilling at the Cronos-1 point of block 6 and to inform you about the new discovery of natural gas in the Cypriot EEZ”, the Minister of Energy said yesterday from Troodos, after the Cabinet meeting.
It said drilling was completed last week and proved the existence of a natural gas reservoir, estimated at 2.5 trillion cubic feet (tcf), according to preliminary estimates. “It has the characteristics of 260 meters of good to excellent quality clean natural gas and we are already in communication with the companies ENI and Total, which manage this particular block, to find ways to optimally utilize this discovery,” he noted. In addition, the Minister of Energy announced that as of yesterday Monday, a second drilling was started within block 6, at a new target, which is called Zeus-1, where additional quantities may be found there and value added to the specific discovery, which in any case is considered tradable, according to the minister. She said that there was a commitment to carry out a second drilling by this consortium within 2022, but what was not yet clear was the exact target, based on the data that would be obtained from the drilling that has just been completed.
Answering a question about the prospects created by the new discovery, the minister stated that “suitable conditions are being created to take advantage of our natural gas in general”, while adding that this discovery is certainly helpful for the exploitation of other deposits, such as Aphrodite . He noted, however, that the natural gas transfer scenario to Egypt is still the most prevalent. The drilling was carried out by the drill ship “Tungsten Explorer” on behalf of the ENI – Total consortium in a water depth of 2,287 meters.
Finally, Natasa Pilidou added that given the EU’s needs to wean itself off of Russian natural gas, “the perspective is now open to move much faster and join the EU’s planning with timetables.”
Yes, but for the EU
Although the many problems (technical, economic, political) that have prevented the exploitation of Aphrodite for 11 years cannot be ignored, it is worth noting that the new discovery in the Cypriot EEZ comes at a time when the EU leadership is eagerly looking for new quantities of gas to cover the needs in the coming years, given the decision to phase out dependence on Russian gas. After the new discovery, combined with the quantities of natural gas in the EEZs of Israel and Egypt, the eastern Mediterranean, including Cyprus, becomes more important for the EU, assuming, however, that in the case of Cyprus, the problems postponing the signature will be quickly overcome agreements with natural gas buyers.
Source: philenews.com
Source: Capital
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