Wednesday. The applicants with whom it will negotiate the team that has been set by the Government, is for the research unit 6 the consortium Eni Cyprus Ltd/TOTAL E&P Cyprus B. V., for unit 8 the company Eni Cyprus Limited and for each 10 the consortium of Exxon Mobil Exploration and Production Cyprus (Offshore) Limited and Qatar Petroleum International Upstream O. P.C.
The Cabinet took the decision taking into account the recommendation of the Ministry of Energy, which was based on the recommendation of the technocratic advisory committee.
Speaking after the session of the Cabinet of ministers, mr. ΛακκοτÏÏπης reported that the Cabinet has appointed a negotiating team which will lead the same, together with the Ministers of Finance and Labour, and in which will participate a number of technocrats and external consultants, to proceed in the negotiation. He added that in case the negotiation is successful, and provided that they received approval from the Cabinet, I will proceed with the signatures of the contracts of proportional sharing. In the opposite case, he said, will go to the first runner-up in the cuts where there is a runner up.
In response to a question about the interest that there was for the research item 10, mr. ΛακκοτÏÏπης stated that “the fact that we had very interesting proposals, both from a technical and economic point of view for the particular piece leaves us optimistic about the prospects.”
“Of course, on the basis of the technical proposals that we have received will have to be drilling to prove and the energy potential of each piece, but the fact that we have received such proposals for investments in a difficult economic environment for the hydrocarbons sector, leaves us cautiously optimistic,” he said.
Asked about the time horizon for the completion of negotiations, reported that this will depend on many factors, from the distance you would travel the two sides in the negotiation. He expressed the desire to complete the negotiation by the end of January, beginning of February.
The deal, reported will include all the terms published in the tender document, which was on the basis of the evaluation criteria and with whom you received the decision today.
“The effort will be to improve these conditions both the technical, financial and legal on the contract,” he said.
To a question, when will be the first exploratory drilling, the Minister said that every contract research proportionality is a duration of seven years, which is divided into three periods. The first is three years, the second for two years, and the third is two years. He added that this will be one of the issues of the negotiation.
“One of the key criteria of the technical evaluation were the number and the speed of the drilling of any company or a joint venture. And this was taken very seriously into account in the evaluation of proposals,” he said.
Asked if any developments on the Cyprus issue affecting energy issues, mr. ΛακκοτÏÏπης said, “you see that we base our programming because our main priority at the moment is a further research program and, if possible, further discoveries, which will help us to evaluate better the potential energy. From then on, our strategy for the exploitation of natural resources in the cyprus EEZ, the procedures for the Cyprus problem”.
Asked if the companies and consortia will be awaiting the results of the drilling of the TOTAL in 2017, stated that the any drilling that is done in the region, whether successful or unsuccessful, gives very important information in trying to interpret the geology of the cyprus EEZ. In this direction, added is and the discussions of the Republic of Cyprus with the egyptian side to take all the geological data of the drilling of the Zohr, which will help to form a better picture as to the geology of the area.
“So, those elements and the drilling is planned within the second quarter of 2017 from the TOTAL in item 11 will be very important,” he said.
With respect to the workpiece 12 said that now the rights have been transferred back to the Republic. “We are at the stage of discussion of the companies between them for the conclusion of contracts of sale. It is the most essential next step to do to move to a binding plan for development and production,” he said.
To a question on possible investments by the companies of the third licensing round, said that there is anything binding in terms of the process of exploitation at this stage. As mentioned, the procedure provided for by the law is that once there is discovery, then the company or consortium will propose a plan for development and production appropriate to a given case, depending on the size of the discovery.
Source
Exxon Mobil – Qatar the plot of 10 – In SINGLE TOTAL the 6 and SINGLE 8
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