Cyprus Deems Second Bid Round A Success

Despite saber-rattling from Turkey, a host of bidders responded to the recent offshore licensing round held in Cyprus. Nicosia said offers exceeded expectations, with the blocks attracting some big name players including Total, Eni, Petronas and Woodside Petroleum. Even Gazprom, a major gas supplier to Turkey, made an appearance through Gazprom Bank in a link-up with fellow Russian firm Novatek and Total. Noble Energy’s Aphrodite find in block 12 has already yielded between 5 and 8 Tcf of estimated recoverable reserves, and this discovery was the principal reason for the heightened interest. Nearly 30 firms, some on their own but most banded together in consortia, put their names in the hat for the country’s 12 remaining marine blocks. Blocks 9 and 2 were the most popular – bidders hope the same gas structure in block 12 will extend into these two permits. Only blocks 1, 4 and 13 failed to attract bids. Allowing for time to examine the bids, the winners are likely to be announced late this year or early next.The bidders have their eyes firmly set on LNG exports, since Aphrodite will likely cover domestic needs for years to come while also supporting a single train LNG project. Download here