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Eni May Have Found Giant Gas Field Off Cyprus

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The drillship Saipem 12000 operating off Cyprus during Eni's drilling campaign, December 2017 (social media / Georgios Lakkotrypis)

By MarEx 2018-02-05 20:35:00

On Friday, Cyprus' energy minister hinted at the discovery of a significant gas field in the nation's exclusive economic zone. Eni is drilling a field called Calypso in Cyprus' lease block six, and if the report is correct, the Italian oil major may have hit another find comparable to its giant Zohr field offshore Egypt. 

Cypriot minister of energy and commerce Yiorgos Lakkotrypis told reporters that while the geology of the formation is complex and requires further analysis, it appears to bear similarity to Zohr. At 30 trillion cubic feet, Zohr is the biggest gas discovery in the Mediterranean, and it is expected to reach an output of nearly three billion cubic feet per day by the end of the decade. A second find the size of Zohr would be a significant win for Eni. 

"The findings are encouraging. A reserve has been located but the morphology of the particular target is complicated so we need more time," Lakkotryptis said. "I won't talk about quantities or anything else."

After completing the exploration well at Calypso, Eni's drillship will move on to another, shallower prospect named Squid. Later this year, Exxon and Qatar Petroleum will begin exploration in Block 10, just south of the block where Eni made its Calypso find. 

American petroleum firm Noble Energy and Israeli partners Avner Oil, BG and Delek Drilling also have interests in Cyprus' offshore development. Together, the group has development rights for the 4.5 trillion cubic foot Aphrodite field, which is adjacent to Israeli waters.