News Energy Eastern Mediterranean Basin: Still a lot to explore VIDEO

Eastern Mediterranean Basin: Still a lot to explore VIDEO

The Eastern Mediterranean is relatively young and there is a lot of exploration still to be done in terms of hydrocarbons, according to the conclusions of the Eastern Mediterranean Gas Conference.

Managing Editor of Gulf Publishing Company, Adrienne Blume, in an interview on SigmaLive in English, stated that one of the biggest things to come out from this years’ conference, was the importance of the deal between Cyprus and Egypt, for transferring gas from Aphrodite’s field in Cyprus EEZ, to Egypt’s LNG plants.

What are the main conclusions of this years’ conference?

This years’ EMGC conference explored many issues, we talked about alternative methods for gas monetization not only for Cyprus but other countries of the region. We talked about what’s been explored so far in the basins the companies have licenses in, and then what might possibly found in the future. We also talked about the ways that gas can be marketed, how countries can collaborate to market and export the gas. Some of the main conclusions and things that we heard from especially the top people like Noble Energy, Cyprus Hydrocarbons Company, BG were that as you know Cyprus and Egypt signed a deal last weekend to export the gas from the Aphrodite field to Egypt and Cyprus. The current plan or the design that was signed under the MOU between the two companies is that the gas from the Aphrodite field would be pumped through pipelines to Cyprus and Egypt and that would be facilitated through a what’s called a FPSO. It’s a Floating Production, storage and offloading vessel. And so that’s one of the major things to come out of the conference and a lot of people were talking about. It’s a big deal and it will hopefully get things moving   from what we can do at least for the gas offshore Cyprus. Another big thing to come out of the conference was that really when you look at the life of this basin is relatively young and there is a lot of exploration still to be done and I know that Noble’s energy position and other’s during the conference proceedings today and yesterday is that there is a lot of work to be done. Not only as far as the exploration and production but also as far as how the gas is going to be monetized, what time of infrastructure is going to be built to distribute and export the gas and a lot of different things looked at from an onshore LNG plant which might not be the most economic option to a floating LNG vessel to different pipeline connections, there’s been a proposal for an Eastern Med pipeline which would go from pipeline from Cyprus through Greek waters and then over Greece and then join the pipeline in Italy. That would serve the EU market. So there’s been a lot of different methods proposed for using this gas  and so many of the speakers were discussing those what might be the most economically feasible as well as what will benefit the region as a whole versus individual countries.

We like Cyprus as a location because it’s very central to the region because you’ve got the Middle East, Europe and Africa that could be benefited from these gas resources. It’s kind of a middle ground for everybody that wants to come and talk about these resources. We also find Cyprus to be very hospitable country, it’s an easy country to work in, we’ve been very welcomed here and we are happy to be holding it in Cyprus and more specifically in Nicosia.

What are the differences from last years’ conference?

The main difference is just in the conference discussions themselves because the East Med hydrocarbons development were at a different stage last year than it was the year before. It's more what’s happening in the markets now with exploration what are the companies doing how they will use the gas and what are their current plans and that has changed. Actually my CEO

We wil be bringing the conference next year back to Nicosia it would be in mid March

Of course the oil price drop was one of the main subject as it involves the activities of the involved parties within the industry. What did you make out of this?

The oil price drop and the general industry downturn is something that has been discussed at every conference that I have attended recently. It is a subject that everybody wants to talk about but doesn't want to talk about. It’s bad for some aspects of the business but then it’s good for others such as refiners benefit when oil prices are low because then they get their stock cheaper. On the other hand LNG projects and upstream oil production is more expensive so those guys don’t do as well but then also with LNG projects you are looking at oil index and pricing then the price downturn we are experiencing now also makes LNG projects less economical and that's why we are seeing some scale back in LNG planning. Just looking at the industry downturn as far as pricing in general it has everybody worried in all corners of the world. With this resource area  (East Med) it’s still under development we still don't know what is to be found and of course the gas that we know its there and that Noble energy has found the majority of it, it remains to be seen exactly how all of that gas is going to be used. So that’s the reason we are holding this conference, to talked about what are the companies thinking and what are their current plans for monetize this gas. I think that everybody is just thinking a wait-and-see approach as far as projects. That is more of infrastructure than it is upstream for this region. Companies will continue to explore and will continue to explore. I think if it would be a prolonged oil price decline, you would see some slowness probably in pipeline projects or other gas monetization projects ..

This is the second time that the conference is hold in Nicosia. What is the meaning of doing this in Cyprus?

We like Cyprus as a location because it’s very central to the region because you’ve got the Middle East, Europe and Africa that could be benefited from these gas resources. It’s kind of a middle ground for everybody that wants to come and talk about these resources. We also find Cyprus to be very hospitable country, it’s an easy country to work in, we’ve been very welcomed here and we are happy to be holding it in Cyprus and more specifically in Nicosia.

What are the differences from last years’ conference?

The main difference is just in the conference discussions themselves because the East Med hydrocarbons development were at a different stage last year than it was the year before. It's more what’s happening in the markets now with exploration what are the companies doing how they will use the gas and what are their current plans and that has changed. 

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