The Research and Proportional Production Sharing Agreement and the Hydrocarbon Exploration License were signed today, Friday 10 December 2021, concerning the licensing of Section 5 of the Exclusive Economic Zone (EEZ) of the Republic of Cyprus to the consortium of QxM Energy companies
At a ceremony held at the Presidential Palace in the presence of representatives of the licensed consortium, US and Qatari ambassadors, as well as government officials, the Minister of Energy, Trade and Industry (YEEB) Natasa Peleidou signed, on behalf of the Republic of Cyprus Research and Proportional Production Sharing and the Hydrocarbon Exploration License for Item 5 of the Cyprus EEZ, with ExxonMobil Exploration and Production Cyprus (Offshore) Limited (manager, 60%) and Qatar Petroleum International Upstream LLC (40%).
On behalf of the consortium, the Contract was signed by Mr. Varnavas Theodosiou, CEO of ExxonMobil Cyprus and the Director of Qatar Energy for International Production and Research Activities (International Upstream and Exploration) Mr. Ali Al-Mana.
“Today’s signing ceremony completes, in just five months, the licensing process that began last June, as a result of the hard work, dedication and constructive cooperation between the Ministry and the consortium, as well as all those involved in the negotiations,” he stressed. after the signing of Mrs. Pileidou.
The Minister praised both the Hydrocarbons Service of YEEB and the teams of ExxonMobil and Qatar Energy as well as the experts of the Legal Service, the Ministries of Finance, Foreign Affairs and Agriculture, the Hydrocarbons Company of Cyprus and the technical advisors of Kra. as he said, they strengthened the efforts of the Minister and the team of the Ministry of Energy. “Everyone,” he added, “has made a decisive contribution to achieving this very positive result and, on behalf of the Government, I want to thank and congratulate you.”
Ms. Pileidou explained that the signing of this mutually beneficial agreement was made possible due to the geological prospects and possible exploitation synergies in Section 5. At the same time, she stressed the importance of strengthening cooperation between Cyprus and companies, at a difficult time for global oil and gas industry, stressing that “with this agreement the Republic of Cyprus, exercising its sovereign rights under international law, further promotes the exploration of our EEZ and the consortium consolidates its presence in the promising Eastern Mediterranean”.
The joint venture of ExxonMobil and Qatar Energy, the minister reminded, is the first of the licensees in the Cypriot EEZ to proceed, after the postponement of works due to the pandemic, to resume its research activities, with confirmatory drilling, before the end of the year. , in the “Glafkos” field, in Block 10. In the field, as Mrs. Pileidou pointed out, 5 to 8 trillion cubic feet of natural gas have been discovered and, according to the assurances of Messrs. Al-Mana and Theodosiou during the meeting they had with the President of the Republic before the signing, “this new drilling is part of their ambitious exploration program. They also informed President Anastasiadis about the intention of the consortium to start, in 2022, works for the collection of seismic data in Block 5 “.
The Minister finally thanked the companies for the confidence they continue to show in the Republic of Cyprus and in the prospects of its EEZ. “Over the last four years, you have proved to be valuable partners of Cyprus in our efforts for optimal and sustainable development of our hydrocarbon resources. “I wish the new Contract that we signed today to lead to the success of our common goals and expectations”, he concluded.
In his own greeting, Mr. Theodosiou said that ExxonMobil and Qatar Energy, which have a long and successful history of responsible resource development, appreciate the strong professional relationship that has developed with the Ministry of Energy, Trade and Industry. “We look forward to continuing our co-operation with the Cypriot Government, with a view to assessing and exploiting the country’s hydrocarbon potential,” he said.
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