Shell representatives at the presidential palace and the briefing on the energy affairs

Shell representatives at the presidential palace and the briefing on the energy affairs

Lakkrotrypis: We discussed of attempting to exploit the Aphrodite gas field

By Michalis Michael

The President of Cyprus, Mr. Nicos Anastasiades welcomed today at the Presidential Palace in separate meetings a delegation of the Shell Company and one of the DEFA Board of Directors, in the presence of the country’s Minister of Energy, Commerce and Industry, Mr. George Lakkotrypis.

Following the two gatherings, Mr. Lakkotrypis stated that during the President’s meeting with the delegation of DEFA’s BoD, “the President was pleased by the fact that, after several efforts for gas to arrive, we have now taken a decisive step towards that direction; this is important for the country for ecological and economic reasons, but also for energy supply security reasons. The President thanked DEFA and its staff”.

Speaking about the President’s meeting with Shell, Mr. Lakkotrypis commented that “actually, the company’s Executive Vice President has put his hands on the portfolio of the region rather recently, and today constituted a first opportunity for him to meet the President and discuss the developments in the region and those regarding Cyprus.

Attempts to exploit the Aphrodite gas field were discussed, as the company is part of the consortium and also the manager of the liquefaction plant. There was an exchange of views on how to proceed promptly, in order to exploit the gas field”.

When asked, he answered that “we are currently in the process of consulting the consortium on the development and production plan. Over the next few days we expect to receive the new version of the development and production plan, which, once agreed on, will be forwarded to the Cabinet along with the revised contract; provided that the Cabinet decides in our favor, a license will be issued for the project to move forward”.

He added that “a great deal of effort is being put both by the companies as well as by the Government, so that we can come up with a mutually acceptable text, in order for the gas field to be further exploited”. In a question on the subject, he commented that “in the new version we have received from the consortium there are basically quite a few timetables. Regarding the first gas acquisition, the timetable we have been given is the 2020-2025 period”.

Second confirmatory for Aphrodite

According to sources, Cyprus’ movements, as well as the planning around the energy affairs, do not take any breaks, while the plan for a second confirmatory for the Aphrodite gas field is expected to be shortly realized, in order for the exploitable quantities of natural gas to be pointed out more accurately.

Regarding the remaining sections, there will be further briefing in the near future, according to the same sources.

When asked whether the issue of pipelines regarding Egypt has been resolved, Mr. Lakkotrypis had earlier underlined that “the issue of a transnational agreement has been dealt with. Naturally, a project scheme would have to be designed, and there is plenty of technical and financial work to be done, so that the Aphrodite gas field will be connected to the Egyptian coast”.

In a question regarding the subject, he added that “at the moment what we are striving for with infrastructure is the maximum flexibility, so that in the future we will be able to have all options available”.

Finally, when asked about the rates of revenue sharing between the companies and the state, the Minister stressed that “it depends mainly on the price of oil in the international markets, the size of the deposit and on many other factors. Therefore, it is risky to talk numbers”. /ibna