Energy Minister says Egypt is interested in using 'Prometheus' floating unit

Egypt has expressed interest in using the floating unit 'Prometheus,' Minister of Energy, Trade and Industry, George Papanastasiou, has said.

He was speaking after a 24 January meeting which President Nikos Christodoulides had at the Presidential Palace, in Nicosia, with the Minister of Petroleum and Mineral Resources of Egypt, Karim Badawi, in Papanastasiou's presence.

At the same time, the two Ministers said that President Christodoulides and his Egyptian counterpart, Abdel Fattah al-Sisi, will on 17 February sign. in Cairo, an agreement for the 'Kronos' field and a Memorandum of Understanding for the 'Aphrodite' field, both in Cyprus' EEZ. At the same time, Papanastasiou noted that in two and a half months it will be made clear whether the indications for the 'Electra' block will be verified.

Papanastasiou said that President Christodoulides accepted an invitation by the Egyptian President to sign an agreement, which was achieved after very hard work by all parties, to exploit the 'Kronos' deposit.

As he explained, this agreement, called Host Government Agreement, is signed by the company that manages the deposit and the country that will receive Cyprus’ natural gas, and includes the terms of commercialization of the deposit. “We will sign as the country that sends the gas to Egypt,” he added.

At the same time, Papanastasiou stated that during a meeting he had earlier with his Egyptian counterpart, they discussed about the 'Aphrodite' field as well as about the possible use of the floating gasification unit 'Prometheus' in Egypt. At the moment, he said, “we are in a process of preparing the floating unit and today interest by this country (Egypt) was expressed to undertake the certification of the ship, as well as the use of the ship for a period of time until we need it in Cyprus”.

The Minister of Energy also stated that a Memorandum of Understanding will be signed on 17 February between three parties, which are the Republic of Cyprus, Egypt and the management company for the 'Aphrodite' field.

Replying to a question about the provisions of the agreements to be signed in Egypt, George Papanastasiou explained that the agreement for the 'Kronos' field provides for the liquefaction of natural gas and, if the consortium or the country sending the natural gas wants, it can also send it to the local market. “All the natural gas from 'Kronos' will be used for liquefaction and export, something that the Republic of Cyprus was asking for,” he added.

Regarding the 'Aphrodite' field, the Minister of Energy noted that there is currently a discussion underway, however,  “it is too early” to say whether the gas will be channeled to the local market or whether it will be exported. “The consortium has indicated to us that it will make the final investment decision for 'Kronos' before the summer of 2025,” he said.

Referring to the commencement of drilling in the 'Electra' deposit, George Papanastasiou said that it is being done with a latest-generation drill rig, which has the potential to reach a depth of 12 kilometres from the water surface. A reservoir is visible, which is approximately 6 kilometres from the sea surface, he added.

He also expressed his optimism that the geological structures related to 'Electra' will be verified, noting that a deep-water drilling has a chance of success of between 35% and 40% and as it approaches the reservoir, these chances increase depending on the pressures the drill rig receives. He added that "we will see in about two and a half months what is in the subsoil,” he stressed.

"Today's development was good news. We have arrived to this after many efforts and consultations, so today is a milestone,” he stressed. “We hope that this milestone will turn into another milestone, which will show that the expected natural gas really exists. In two and a half months we believe that it will be ready, but it could be even sooner,” he concluded.

On his part, the Egyptian Minister spoke of a “fantastic collaboration and strategic partnership between Cyprus and Egypt” and “a strong follow-up to the Presidential Summit”, which took place on January 8 in Cairo. 

Referring to the agreement to be signed on 17 February, he spoke of an “a very important agreement which will help set the scene for strategic collaboration between Cyprus and Egypt to unlock the subsurface potential existing in Cyprus, leverage the infrastructure of Egypt to be able to export gas.” 

Referring to the agreement for the 'Kronos' field, he said that it will "enable our partners to proceed with their final investment decisions to unlock the potential of 'Kronos' field in the very near future.’’

‘’We're also working on signing in Egypt an MoU for 'Aphrodite' field as well, to help unlock that potential for the benefit of the people of Cyprus, and also to leverage our strong partnership,’’ he added.

Badawi thanked Papanastasiou for ‘’the partnership, the collaboration to work for the best of both our countries in terms of how we can unlock the subsurface potential in a collaborative spirit, leverage the infrastructure which exists in Egypt and leverage the great potential that Cyprus holds in terms of natural reserves."

“We are also committed to working to ensure that we materialise these agreements to unlock that potential,” said Karim Badawi. “Today is a very important day for me and 17 February will mark a historic milestone in our intergovernmental relations and our strategic partnership,” he stressed.

He expressed his gratitude to his Cypriot counterpart for the partnership that exists at all levels, noting that “we still have a lot of work to do ahead.”

‘’The partnership between our teams to make it happen and their commitment remains very strong and we look forward to continuing this fruitful collaboration, friendship and partnership for the benefit of the people of Cyprus and for the benefit of the energy needs that would also enable to provide gas as well for Europe, right through the potential from Cyprus and the infrastructure which exists in Egypt,’’ he concluded.

(Source: CNA)