In June 2016, the Government of the Republic of Cyprus announced its 3rd Hydrocarbons Licencing Round, opening Blocks 6, 8, and 10 for bidding. The licensing round attracted a high level of interest from major international oil and gas companies, with bids being submitted by ExxonMobil, Qatar Petroleum, Cairn Energy, ENI, Total, Statoil and Delek Drilling.
CHC is participated in the negotiation committee with successful bidders on behalf of the Government of Cyprus. Following a period of negotiation, the Council of Ministers approved the signature of Exploration License and Production Sharing Contracts (EPSCs), for an initial term of three years, for each block as follows:
- Block 6: Eni/Total
- Block 8: Eni
- Block 10: ExxonMobil / Qatar Petroleum
The award of the licences triggers the start of the exploration period for each of the Blocks, with wells expected to be drilled in the period 2017-2019. CHC will participate in the Production Sharing Contract management committees on behalf of the Government of Cyprus.
In February 2018 ENI made a lean gas discovery in Block 6 of the Cyprus Exclusive Economic Zone. This discovery is named Calypso. The Calypso-1 well, which was drilled in 2074 meters of water depth reaching a final total depth of 3827 meters, encountered an extended gas column in rocks of Miocene and Cretaceous age. The Cretaceous sequence has excellent reservoir characteristics.
An intensive and detailed data collection (fluids and rock samples) has been executed on the well. Calypso 1 is a promising gas discovery and confirms the extension of the “Zohr-like” play in the Cyprus Exclusive Economic Zone (EEZ).
Additional studies will be carried out to assess the range of the gas volumes in place and define further exploration and appraisal operations.
Eni is the Operator of Block 6 with 50% of participation interest while Total is partner with the remaining 50%.
Block 10 Drilling Campaign
In November 2018, the consortium of ExxonMobil and Qatar Petroleum began a two-well exploration campaign in Block 10, targeting the Delphyne and Glafkos prospects. The results of the drilling campaign will be announced upon the completion of drilling activities on the second well in early 2019