Total Receives Two Exploration Licenses in Cyprus

France-based oil firm Total was awarded two licenses for hydrocarbon exploration in blocks 10 and 11 in the Exclusive Economic Zone of Cyprus after the recent signing of contracts on production sharing with the state’s Commerce Ministry.

Following the signing ceremony, Neoclis Sylikiotis, the Commerce Minister of Cyprus, said that the deal finalizes one of the most important goals of the energy agenda of the government: the successful ending of the second round of licensing.

Arnaud Breuillac, Total’s oil exploration and production president in the Middle East, said that the firm will continue with the 2D seismographic examination of block 10 and 3D studies of block 11.

Answering to queries, Breuillac also said that the firm would go on with its planned natural gas and oil drilling activities. However, it is too early to state which of the two will be given more priority.

Sources say that the estimated bonus for the signature is around 24 million euros.

On the 24th of January, contracts were signed by the Republic of Cyprus with the consortium of ENI/KOGAS for hydrocarbon exploration in blocks 2, 3 and 9 in Cyprus’ EEZ.

Cyprus’ first oil exploration contract was signed with Noble Energy of the United States in 2008 for offshore block 12. Noble’s exploratory drilling performed in the latter parts of 2011 showed that the reservoir of natural gas in the area amounted to a estimated gross average of 7 trillion cubic feet.