Article

Bidders invited for negotiations over
Cyprus offshore blocks

On 21 December 2016, the Ministry of Energy announced that the Republic of Cyprus will commence negotiations with the selected bidders for the terms and conditions of the Production Sharing Contract (‘PSC’) in the context of awarding licenses for three offshore blocks of the Cypriot Exclusive Economic Zone (‘EEZ’).

Blocks 6, 8 and 10 were put up for tender as part of the 3rd licensing round for hydrocarbon exploration in the Cypriot EEZ with the following applicants submitting bids by 22 July 2016:
 

Block

Bidders

Operator

 6

ENI Cyprus Ltd / TOTAL E&P Cyprus B.V.

ENI Cyprus Ltd

 8

Capricorn Oil (Cairn Energy) / Delek Drilling /
Avner Oil Exploration

Capricorn Oil (Cairn Energy) 

 8

ENI Cyprus Limited

ENI Cyprus Limited

 10

ENI Cyprus Limited / TOTAL E&P Cyprus B.V

ENI Cyprus Limited

10

ExxonMobil Exploration and Production Cyprus (Offshore) Limited /
Qatar Petroleum Internationa Upstream O.P.C.

ExxonMobil Exploration and Production Cyprus (Offshore) Limited

10

Statoil Upsilon Netherlands B.V.

Statoil Upsilon Netherlands B.V.


The Council of Ministers, having considered the recommendation of the Minister of Energy and the preparatory report of the technical Advisory Committee on Hydrocarbons Exploration, has selected the following bidders for negotiations over the PSC terms and conditions:

Block 6: ENI Cyprus Limited / Total E&P Cyprus B.V.

Block 8: ENI Cyprus Limited

Block 10: ExxonMobil Exploration and Production Cyprus (Offshore) Limited / Qatar Petroleum International Upstream O.P.C.

In case of a successful outcome of the negotiations, the licenses over the three blocks are expected to be awarded to the above bidders. If the negotiations fail with respect to a specific block, the respective runners-up will be invited for negotiations. According to the Minister of Energy, the negotiations with the selected bidders are expected to be completed during January 2017 with the respective PSCs signed shortly after.

Deloitte is a leader in the provision of professional services to the Oil & Gas industry, including Tax and VAT advisory, Consulting and Human Capital Services, having accumulated significant experience and expertise through its involvement with all major players from the very beginning of the industry in Cyprus.
 

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