neo April 30, 2015 No Comments

April 2015 _ Cyprus developing its role as the regional hub in the Eastern Mediterranean

NBAC, in partnership with the Norwegian Embassy, CIBA and ERPIC, arranged a successful meeting on the 20th April with 125 individuals attending, where Mr Claes Reksten from Petrad presented “What can be learned from the Norwegian Model”. Following the presentation was a panel debate about Cyprus as the regional oil and gas service hub for the Eastern Mediterranean sector.

The Norwegian Model highlights were:

–       It took Norway 40 years to develop and invest in its oil production and service industry before anything could be accumulated into the sovereign wealth fund.

–       The creation of a successful model for any country demands long term planning and a strong interaction between local industry, the government, regulatory bodies and the international oil industry.

–       The state of Norway puts its own money on the table and participated directly in the risks of the exploration and development of the oil and gas fields.

The following panel discussion main points:

–       Cyprus is an ideal hub for the Eastern Mediterranean oil/gas service industry because of its geographical location, EU and EURO membership and its present infrastructure.

–       Cyprus government is passing on a great opportunity to create employment and future tax income, when they are not actively supporting the international oil and gas service companies to establish themselves in Cyprus.

–       Cyprus government should promote building a service base in Cyprus for the regional Exploration and Offshore production of oil and gas.

–       Local companies are facing a steep learning curve in order to adapt to the high quality standards and regulatory requirements demanded by the international oil and gas industry for certified workers (for instance: welding, pipe works, electrical/electronic works)

–       Local companies must abandon the wait and see mentality and actively seek cooperation with overseas oil and gas firms in order to obtain competence and support for developing a local service industry.

The event will have a follow up meeting in the autumn, which will focus on bringing international companies to the Eastern Mediterranean region.

We will email Mr. Reksten´s presentation to any interested party. Please contact us for further information.

neo April 2, 2015 No Comments

Noble Energy and Delek expected to present exploitation plans for offshore Block 12

Energy Minister Giorgos Lakkotrypis said on Tuesday that Noble Energy and Delek, which hold the concession for offshore Block 12 of the Cyprus Exclusive Economic Zone, is expected to submit in the coming weeks their development plan for the natural gas reserves they detected.

The Minister also said that the plan will describe in detail the ways in which the subsea infrastructures will be employed for the exploitation of the reserves, as well as the potential markets which this exploitation will target. The markets already approached by Noble Energy and Delek are Cyprus, Egypt and possibly Jordan.

Lakkotrypis clarified that though the government is still waiting for the development plan, preliminary plans are looking at a floating production, storage and offloading (FPSO) vessel combined with subsea pipelines to the possible destinations.

The FPSO is essentially a platform producing and treating the gas on-site. The gas would then be piped to existing LNG facilities in Egypt.

Asked about the cost of developing the concession, Lakkotrypis said they had some estimates available, but declined to disclose them until the government had in its possession the development plan.