Announcement on 'Pegasus 1' gas discovery, “an optimistic message”, Energy Minister says

Energy Minister George Papanastasiou has said that the announcement on the discovery of a gas-bearing reservoir in the 'Pegasus 1' well within offshore Block 10 of the country’s exclusive economic zone, sends “an optimistic message,” noting that with this discovery a certain quantity of marketable and economically viable gas has begun to be accumulated.

In his statements after a meeting of the Council of Ministers at the Presidential Palace on 8 July, and asked to comment on the 7 July announcement, following a teleconference of the President of the Republic with the Vice President of ExxonMobil, Papanastasiou said that it was “a successful announcement, even though it did not provide enough information.” He noted that it was common for energy companies not to immediately announce quantities as regards discoveries.

He also noted that the announcement concerned the discovery of a 390-metre natural gas column in the 'Pegasus 1' target, located 190 kilometers southwest of Paphos. He explained that the larger a natural gas column, “the more likely it is that the deposit is marketable.” He added that, comparing the size of the latest discovery with the one found in the 'Glaucus' well, located also in Block 10, “or in other deposits that we have, this sends an optimistic message”.  

According to Papanastasiou, the company involved as the operator of this Block will, in the coming weeks, evaluate the other data it has collected from the drilling to be able to estimate the quantity of natural gas in this particular reservoir.

He noted that the reservoir is located next to the 'Glaucus-1', 'Glaucus-2' wells, “which have other quantities of natural gas”. Also in the area, he added, are Cronos, Zeus and Calypso wells, “so you understand that with this discovery, a certain amount of exploitable, marketable and economically viable gas has begun to be accumulated”, so that Cyprus can push through with its the natural gas exploitation programme.  

“We have already signed the host country agreements with Egypt,” he said, noting that Egypt has offered to provide liquefaction services after Cyprus’ natural gas is transported there.

Finally, the Minister said that decisions “always” belong to the investors in consultation with the Republic of Cyprus, “and we expect that there is such an agreement, such an understanding also with the specific company” operating in Block 10.

(Source: CNA)