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Noble Energy Sees Significant Energy Potential in the Eastern Mediterranean

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The Eastern Mediterranean is on the road to becoming a major hub for hydrocarbon production, according to John Tomich, Cyprus Country Manager of energy giant Noble. Addressing the Eastern Mediterranean Gas Conference in Nicosia this month, Tomich referred to the significant potential of the region, expressing that further exploration of its hydrocarbon reserves must be coordinated so as to more effectively evaluate the commercial opportunities that may be present. "There is still much exploration to be done before the full potential of the Eastern Mediterranean is known, but we are off to a very good start with the major gas discoveries that have been made offshore Israel and Cyprus," Tomich noted.

Though the Eastern Mediterranean has a bright future in the field of energy, the deep water Levant basin is still very young as a hydrocarbon province, he continued to explain, with significant exploration activity having begun a mere six years ago. "Most basins take decades to be explored and there is no expectation that the Levant will be any different," he said. However, Noble is committed to continuing the exploration of the region’s “substantial acreage” in search of further reservoirs, as strong evidence exists of an oil-prone hydrocarbon system. "We believe there is great untapped potential," he affirmed. Following four years of exploration in block 12 of Cyprus’ Exclusive Economic Zone, Texas-based Noble Energy is expected to submit its development strategy for the gas field, which holds a gross reserve of some 4.50 trillion cubic feet.

French energy giant Total has agreed to continue its exploration in Cyprus’ Exclusive Economic Zone (EEZ), following extended deliberations with the Government. In January, Total had announced its intention to terminate its operations on the island, due to its inability to locate drilling areas with the potential for gas reserves. The company had paid for the licence for blocks 10 and 11 of the EEZ after signing two production-sharing contracts with the Ministry in 2013, beginning thereafter seismic exploration for oil and gas in block 10, and in parts of blocks 6, 7 and 11. The Government continued to hold talks with Total officials with the aim of extending the cooperation agreement and these efforts have now come to fruition: the Minister of Energy, Commerce, Industry & Tourism, Yiorgos Lakkotrypis, signed such an agreement with the General Manager of Total E&P Cyprus B.V., Jean-Luc Porcheron earlier this month. The contract will see Total continue to explore the island’s hydrocarbon reserves in order to further assess the prospect of commercial exploitation of block 11.

For more information please visit the Cyprus Investment Promotion Agency.