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Wednesday, 7 February 2018

Are Eni and Total at the precipice of a giant gas discovery in Cyprus?

Are Eni and Total at the precipice of a giant gas discovery in Cyprus? Reports have begun to emerge in the Israeli and Cypriot press this week that Eni and Total are on the brink of a major gas discovery at the Calypso reservoir in Block 6 off the coast in Cyprus. The find is reported to be 6-8.1 tcf, according to Israeli daily Globes. However, Cypriot Energy Minister Yiorgos Lakkotrypis said, “The findings are encouraging, but we need more time for analysis in order to provide final confirmation that there is a gas discovery. Meanwhile, I am unwilling to talk about quantities or any other matter.” The final results of the drilling are expected to be published within a few days. Lakkotrypis added that the geologic structure of the sea bottom at Calypso was similar to that of Egypt’s Zohr discovery. Globes notes that this doesn’t bode well for Israel’s Leviathan field, which remains without any contract to develop it.

Energy analysts urge not getting hopes up: A number of dissenting voices are urging caution when it comes to expectations of the field, Cyprus Mail reports. While some sources have noted that the timing of the rumors coincides with the Cypriot elections, others, including energy analyst Charles Ellinas, say these reports are “somewhat strange”, given Eni’s strategy of not disclosing any information until there is final corroboration from an analysis of the drill cuttings.

Turkey seems perfectly happy standing on the sidelines of the East Med gas boom, being a hater: Meanwhile, Turkey’s Foreign Minister Mevlut Cavusoglu is once again spewing the usual nonsense that the exclusive economic zone between Egypt, Cyprus and Greece is illegal under international law, adding that Turkey has raised the issue with the UN. “After thorough examination, we have clearly stated that the agreement violates Turkey’s continental shelf in areas falling beyond longitude 32_ 16’ 18” west. This agreement is therefore null and void, according to international law,” he tells Greek outlet Kathimerini in an interview. Cavusoglu also again raised his opposition to development of Block 6.

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