Cyprus offshore block 12 may carry potentially more than 7 trillion cubic feet (tcf) of natural gas, Noble Cyprus manager John Tomich has said.

“We made that nice discovery of 7 tcf but we think there is a lot more potentially there and we will be chasing additional gas fields,” Tomich said during a press conference for the Eastern Mediterranean Gas Conference to be held in Nicosia on October 26-28 next year.

Exploratory drilling conducted by Huston-based Noble Energy in Block 12 of Cyprus’ Exclusive Economic Zone, revealed an estimated gross natural gas reserve of 5 to 8 tcf , with a gross mean of 7 Tcf.

Tomich said the company is right now focusing on the appraisal well to be conducted in the first quarter of second quarter of 2013 depending on rig availability.

“We are planning to drill the appraisal well in 2013, depending when a suitable rig is available,” he said.

He also noted that Noble will be also searching for oil beneath the natural gas reservoir, noting however that the probability for oil is “small but not zero.”

“Geologically there is no reason why the oil couldn’t be there, it is just a matter of where how much of it and how deep,” he added.

Referring to Noble`s strategic plan, Tomich said in parallel with the appraisal well another key-step is to negotiate with the government an LNG terminal.

Recalling that Cypriot Minister of Commerce, Industry and Tourism Neoclis Sylikiotis has announced that the government has decided to proceed with a shore-based Liquefied Natural Gas plant at Vasilikos, Tomich said that that will be done ” in conjunction with Noble as the lead operator for the project.”

He added the base scenario provides for a one-train facility with a capacity of about five million tons per year LNG production coming from block 12.

“Something that is very important for the government and for Noble is the fact that this LNG plan will be expandable to handle additional volumes of gas that could be found in other blocks. So it will be an open access plan and gas could be coming either from block 12 if we are able to find additional gas, or from other operators in Cyprus or indeed maybe there is gas that would be coming from Israel over time as well,” he concluded.

The government approved on November 23, last year, the launch of a second licensing round for the remaining 12 offshore blocks, a decision published in the EU Official Journal on February 11, 2012 and expired on May 11, after a three-month bidding period. Fifteen companies and joint ventures, including energy heavyweights such as French Total and Korean KOGAS, have bided for 9 out of Cyprus’ 12 offshore exploration blocks. Bids are being currently evaluated by the government.

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