Cyprus Hydrocarbon Company (CHC) is working “intensively” towards making gas exports to Egypt possible, General Manager Panos Kelamis told Cyprus Mail. “We want to clinch an agreement, because this would be an agreement for 15-20 years that will offer Cyprus the maximum … We definitely want to go to Egypt, but we have certainly looked at the scenarios of a great discovery and the synergies that will exist,” he says. Kelamis noted that negotiations are tough because “prices are currently low.”
The General Manager of the Cyprus Hydrocarbon Company (CHC), Panos Kelamis, appears optimistic about Cyprus’ energy prospects, pointing out at the same time that the situation in the oil and gas industry is dynamic which calls for patience and perseverance.
In an interview with CNA, Kelamis referred to block “10” of Cyprus’ Exclusive Economic Zone (EEA) which has attracted great interest among major oil and gas companies that participated in Cyprus’ third licensing round and in which ExxonMobil plans drilling in 2018.
According to Kelamis, the companies “battled” for block “10” which is important according to their seismic and geological surveys and especially on the basis of the model of the Egyptian Zohr field.
Regarding the exploitation of Aphrodite field and the prospects of exports to Egypt, Kelamis said that CHC is working intensively towards this direction, together with the companies of block “12”, Shell, Delek and Noble in order to achieve the best results.
He noted that negotiations are not easy because prices are currently low, despite the upward trend, noting that one should be careful.
“We want to clinch an agreement, because this would be an agreement for 15-20 years that will offer Cyprus the maximum. And we want the agreement to be clear, in order for every Cypriot to really understand why we sign it,” he said.
He noted that since February 2016, there were 18-20 meetings with the interested companies in Egypt, and expressed the view that an outcome will be achieved and announced soon.
“We need persistence and perseverance. We definitely want to go to Egypt, but we have certainly looked at the scenarios of a great discovery and the synergies that will exist,” he added, noting that more deposits give Cyprus more choices for development and commercial exploitation.
“The whole situation in the oil and gas industry is a dynamic situation. We know where we want to go there, but there are many ways to go there “he said.
Asked if there will be a clearer picture for the exploitation of deposits by the end of 2018, he said that for “Aphrodite” it will be even faster.
At the same time, he said that the future of Eastern Mediterranean is auspicious regarding oil and gas.
He also talked about a breakthrough such as the findings in the Egyptian Zohr field and how this has changed the game in the Eastern Mediterranean since 2015. Kelamis praised Nicosia’s quick response to this development.
He expressed the view that the Eastern Mediterranean, due to Zohr’s discovery or new discoveries and thoughts about new oil systems in the future, is of great importance to the industry. Moreover, he stressed the importance of the fact that an energy giant such as ExxonMobil has come to Cyprus and the Eastern Mediterranean.