CNA News

Energy Minister in Egypt after successful conclusion of “Cronos 2” appraisal

Cypriot Energy Minister George Papanastasiou will travel to Egypt on Sunday for a series of contacts concerning natural gas in the Eastern Mediterranean.

His visit will take place following the announcement by Italian energy major, ENI, on Cronos -2 appraisal well in block 6 that proved “the excellent gas deliverability capacity of the discovery”, while the well confirmed its communication with Cronos-1 reservoir, estimated to hold 2.5 trillion cubic feet of gas, while the appraisal well

Speaking to CNA, Papanastasiou said he travels to Egypt “to listen what the neighbouring country is thinking, as a country that has infrastructure ready to be used.”

Replying to a question, he said that he is referring to the two liquefaction terminals in Egypt, namely Damietta and Idku with a combined capacity of 610 billion cubic feet annually.

On the next steps following the Cronos 2 appraisal well, Papanastasiou said that the consortium will proceed with development and production noting that ENI, the block’s operator is looking for a fast – track development.

«We expect an initial recommendation on development in the coming weeks,” the Minister said, adding that after that a detailed document will be submitted, on the lines of the one signed with Aphrodite in 2019, on the development and production, to be agreed by both parties.

He also said after the contract is agreed upon, another country would be involved if it is associated with commercial exploitation, explaining that this involves the routing of gas, the share of liquefaction and the share of export to another country.

Asked whether synergies could be achieved with companies that hold exploration rights in neighbouring blocks, Papanastasiou said he could not bind the companies over their decisions, but noted that at this juncture the companies “are in rush” to extract the natural gas.

“Hence the first phase of Cronos exploitation and other reservoirs held by the consortium may be carried out with no synergies,” he went on to say.

That is, Papanastasiou added, “to initially as a first phase, proceed with the exploitation of the specific reservoir (Cronos) and as a second phase to explore synergies with other reservoirs and other companies”

For a quick exploitation, (the consortium) should proceed with the specific reservoir which we believe carries a sufficient quantity of natural gas, the Minister added.