Exploration of blocks 2, 3, and 9 in Cyprus EEZ has ended, Energy Minister confirms

The exploitation licenses for Blocks 2, 3, and 9 of the Cyprus Exclusive Economic Zone (EEZ) have expired without renewal after exploration failed to reveal commercially viable natural gas reserves, Energy, Commerce and Industry Minister George Papanastasiou has confirmed.

He was speaking to the Cyprus News Agency (CNA).

This development also marks the exit of the Korean energy company Kogas from the Cyprus EEZ, where it held a 20% stake in the blocks. Following the expiration of the licenses, Italian energy company Eni now retains rights in four Cyprus’ blocks (6, 7, 8, and 11) in partnership with French Total, a reduction from the seven blocks previously held.

When asked about a report by the website MEES (Middle East Economic Survey) regarding the return of rights for Blocks 2, 3, and 9 at the end of January, Papanastasiou confirmed that the licenses had expired without renewal, as the exploration did not yield encouraging results regarding the presence of natural gas.

“The exploitation licenses for these blocks have expired. In Blocks 2 and 9, where exploration and studies were completed, no promising natural gas prospects emerged, so we did not renew them,” he said. He added that the same applies to Block 3, where the exploration activities were more limited.

The Minister stressed that the non-renewal of the licenses is a “natural development,” noting that not every block in the Cyprus EEZ was expected to contain gas reserves.

The exploration licenses for Blocks 2, 3, and 9 were originally issued in January 2013 to a consortium comprising Eni Cyprus Limited and Kogas Cyprus Limited, later joined by TOTAL E&P Cyprus BV. Seismic surveys, both 2D and 3D, were conducted in the licensed areas, and two exploratory drillings were carried out in Block 9.

The Amathusa-1 drilling reached a depth of 5,800 meters and the Onasagoras-1 drilling reached 5,485 meters, yet these efforts did not yield commercially exploitable quantities of natural gas. Meanwhile, work in Block 3, which began in 2018, was disrupted by operations from the Turkish naval forces.

(Source: CNA)