Papanastasiou: Chevron positive to synergies in the region
08:05 - 30 November 2023
Energy Minister George Papanastasiou said that US oil major Chevron appears positive to the prospect of creating synergies with the other companies active in Cyprus’ Exclusive Economic Zone (EEZ).
He added that the company is expected to respond in writing to a relevant letter by the government by 1 December, and that from then on a relationship of trust should be built.
The Minister, who was present during the handover of the 19th Annual Report and Accounts of the Cyprus Energy Regulatory Authority to the President of the Republic, referred to the Eastern Mediterranean Conference and Exhibition that is currently taking place in Cyprus, where many opinions and have been presented regarding the use of natural gas in the Eastern Mediterranean. Many of the participants are companies that own infrastructure in the Eastern Mediterranean, he added.
"The position of our Ministry was very clear, that Cyprus is the priority and it is very important that the natural gas and natural wealth in the Cypriot EEZ be exploited as soon as possible and we expressed the position that synergies should be made towards this direction," Papanastasiou said.
He said existing infrastructures should be put into use, while the companies should not try to exploit each field separately, he added
This means, he continued, that there can be common infrastructures and joint exploitation of deposits. He added that there should be a consultation, which the Ministry of Energy will assist, so the companies can enter into some kind of dialogue in order to conclude on some infrastructures and make it possible to exploit the fields.
The Minister referred to the war between Israel and Hamas, saying that Cyprus is very exposed to any crisis in the region, as energy is very dependent on external factors.
Papanastasiou said that the plan presented yesterday at the conference by the Ministry is on how to make use of Cyprus’ natural wealth and convert it into electricity which is also the driving force of the market, but at the same time, how to use other means of energy production such as solar and wind energy.
Asked about a statement by Chevron yesterday at the conference, on synergies between the companies, Papanastasiou welcomed the company's position saying that this is what the Ministry had in its plans. He referred to the medium and small size of the fields and their dispersion, saying that these deposits should either be connected to each other using some new or existing infrastructure and perhaps connected to other deposits located in the wider Eastern Mediterranean region.
So, he added, we agree with the position of the head of Chevron.
The government, he added, will wait for the company's position in writing on 1 December and from there on, both parties will have to build on that position so that there is trust in the sense that the direction should be common and accepted by both parties.
Asked if the government's plans continue as normal despite the developments in the region, the Minister noted that drilling is underway at Cronos 2 in the southwestern cluster of fields in the Cypriot EEZ, adding that any possible consequences of the war in the Middle East are also being considered.