This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 7/29/2019

Overview

There is one confirmed gas field in the ROC’s EEZ, Noble Energy’s ‘Aphrodite’ in Block 12 totaling 4.5 trillion cubic feet (tcf).  The ROC initiated in March 2016 a third licensing round for the offshore exploration and exploitation and signed Partnership Sharing Contracts (PSCs) with ExxonMobil/Qatar Petroleum for Block 10, ENI for Block 8, and ENI/TOTAL for Block 6 in April 2017.  Of the 13 offshore blocks available for exploration and exploitation in the ROC’s EEZ, eight have been awarded to date, in three licensing rounds.  Block 12 was awarded to Houston-based Noble Energy in 2008; Blocks 2, 3, and 9 were awarded to ENI/KOGAS; and Blocks 10 (later relinquished) and 11 were awarded to TOTAL in 2012.  The ROC decided not to issue a fourth licensing round and instead it is currently in direct negotiations with ENI/TOTAL for the award of Block 7.  In 2017, ENI partnered with TOTAL for Block 11 in a 50-50 split, in which TOTAL remains the operator.  TOTAL has also officially requested from the ROC to partner with ENI on the rest of the latter’s awarded blocks in the ROC’s EEZ.  Confirmed deposits of natural gas in the ROC’s EEZ are 4.5 tcf but recent discoveries in the Eastern Mediterranean show greater potential.  Recent exploration efforts by ENI/TOTAL in Block 6 show possible deposits in the range of 6-8 tcf and exploration efforts by ExxonMobil/Qatar Petroleum in Block 10 show estimated deposits of 5-8 tcf.  The consortiums will have to proceed with appraisal wells to determine a more accurate amount.  Experts expect the ROC will become a natural gas exporter in the near future and that ongoing exploration in the ROC’s EEZ will result in additional discoveries of hydrocarbon reserves.  The ROC officially announced on May 21, 2019 that there will be eight offshore hydrocarbon drills within the next 24 months in the ROC’s EEZ; six exploration and two appraisal.  The drilling program will start towards the end of 2019 or early 2020.
 

Leading Sub-Sectors and Opportunities

Ancillary Services / Drilling Equipment:
With eight anticipated exploratory and appraisal  drilling efforts in the pipeline for 2019, and 2020, U.S. companies offering related ancillary services and drilling equipment in exploration and exploitation of natural gas could find potential opportunities in Cyprus.

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