New Energy Sources of Supply for Europe: The Prospects for Southeast Europe and Eastern Mediterranean Solon Kassinis Director - Energy Service 16 th Roundtable with the Government of Greece Transforming uncertainty into stability, wisdom and growth Athenaeum InterContinental Athens, Greece 02 July 2012 Ministry of Commerce, Industry & Tourism Republic of Cyprus
Cyprus: Geostrategic Facts Third largest island in the Mediterranean Sea Located at the crossroads of big international energy routes Full member state of the European Union Open services-oriented market economy A strategic hub for business activities in the region Greater Mediterranean region is a market with large potential for oil and gas trading
Regional Hydrocarbon System: Potential Undiscovered Oil & Gas Resources in the Eastern Mediterranean Assessment by USGS Levantine Basin Oil: 1.68 bbl Gas: 122 tcf Nile Delta Basin Oil: 1.76 bbl Gas: 223 tcf
East Med Hydrocarbon System: Israel Leviathan Natural Gas: 20 tcf Oil:? Tanin Natural Gas: 1.1 tcf Tamar Natural Gas: 9 tcf Production: 2013 Dalit Natural Gas: 0.5 tcf Production: 2013
East Med Hydrocarbon System: Egypt Gas Reserves (EGAS) Mean Annual Increase = 5.2%
Offshore Cyprus: Natural Gas Discovery Natural Gas Discovery 28 Dec. 2011 7tcf gross mean estimated resources 310 feet net natural gas pay (Miocene sand intervals) 40 sq. miles field area 5,860m total depth 1,688m water depth
Hydrocarbon System: Southeast Mediterranean
Offshore Cyprus: An Emerging Area A promising regional geological background A great number and variety of play concepts for Exploration associated to the different tectonic and stratigraphic domains Many attractive major plays have been identified An efficient regional seal: the Messinian evaporites Very thick sedimentary basins (12-15 km) Multiple possible clastics and carbonate reservoirs 14 plays and many leads of considerable size Big hydrocarbon discoveries in the region Geological Cross Section
Offshore Cyprus: 14 Recognized Hydrocarbon Plays
2 nd Licensing Round Available Blocks: 1-11 & 13 2 nd Licensing Round: 11 Feb. 11 May 2012 Number of Applicants: 15 Companies/Consortia Number of Applications Submitted: 33 Countries of Origin: United Kingdom, France, USA, Israel, Netherlands, South Korea, Russia, Malaysia, Italy, Australia, Norway, Canada, Indonesia, Cyprus Evaluation of the applications is carried out by a Committee The terms and conditions of the Contract shall be negotiated with the selected applicant The competent authority for the granting of licenses is the Council of Ministers
Development in Block 12 (Subject to Approval)
Natural Gas Demand in Europe Natural Gas Demand in EU27 Share of Natural Gas in EU27 Primary Energy Consumption Natural Gas Production within EU declines The share of Natural Gas in EU s primary energy consumption will remain high Additional Supplies need to be defined Source: Eurogas
Natural Gas Supply in Europe - Alternatives Source: Enel
Natural Gas Projects (Subject to Political Decisions) Domestic Market Gas Supply via Pipeline EU and International Market Liquefaction Plant Gas export pipeline
Liquefaction Plant Commercial Perspectives (Subject to Political Decisions) 0 100 Year online 200 300 Capacity (mtpa) Train 1 Train 2 Train 3 2018-2019 Future Far Future 5 5 5 Future Upstream Producers Future Upstream Producers Asia 65% Asia 60% Asia 50% Europe 35% Europe 40% Europe 50% Independent LNG Plant Company A (shareholders may be same as owners) Independent LNG Plant Company B (shareholders may be same as owners) Independent LNG Plant Company C (shareholders may be same as owners) 400 Noble Energy 500 Gas Suppliers 600 700 800 LNG buyers (contracted destination) 900 1000 metres 10 Operator es etr n 0m atio ca v Ex Buildings Refrig. Storage Utilities Inlet Gas Governed by a Joint Use and Operating Agreement Total Cost (USD) LNG Train (APCI) LNG Train (APCI) LNG Train (APCI) Price Marker Commercial Structure LNG Storage 2nd Licensing Round (potential) Licensees 10 billion 8 billion 6 billion Japan Crude Cocktail (JCC) Japan Crude Cocktail (JCC) Japan Crude Cocktail (JCC) Fuel Oil Fuel Oil Fuel Oil Tolling Tolling Tolling HP Flare LP Flare
Gas Export Pipeline (Subject to Political Decisions) Gas Export Pipeline Gas Transmission
Integrated Gas Project in Cyprus A Future Perception Gas Export Pipeline Gas from other upstream fields
Thank you for your attention!