1. Hydrocarbon Exploration Activities Offshore Cyprus
Solon Kassinis
Director - Energy Service
Ministry of Commerce, Industry & Tourism
Republic of Cyprus
Delegation of French Oil & Gas Companies
Nicosia, 05 December 2012

2. Gas Discovery - Block 12
Oct. 2008: Exploration Licence and PSC with Noble Energy International Ltd
Sept. 2009: 469 sq km 3D seismic survey (Prospect: Aphrodite)
Jun. 2011: 4,000 km 2D seismic survey + Grav & Mag Surveys
Sept. 2011: First Exploratory Well
Oct. 2011: First Renewal of the Exploration Licence – 25% Relinquishment 2

3. Gas Discovery - Block 12 Natural Gas Discovery 28 Dec. 2011
7tcf gross mean estimated resources
40 sq. miles field area
5,860m total depth
1,688m water depth 3 3

4. Gas Discovery - Next Steps: Appraisal Drilling
An appraisal well is planned to be drilled in Aphrodite field within the first quarter 2013
5,950m total depth
1,730m water depth
Preparation of tenders for the appraisal drilling under progress
The whole appraisal process is anticipated to be completed by early 2015
ENSCO 5006 4 4

5. Gas Discovery - Next Steps: Upstream Development
Verification (exploratory) well drilling
Reservoir appraisal and assessment
Studies on the installation of offshore and onshore equipment
Production drilling and well completion
Subsea system installation
Deep water host commissioning
Export pipeline installation 5 5

6. Gas Discovery - Next Steps: Pipelines
Studies are underway regarding the pipeline routing from the gas field to Cyprus’ shore
Gas Supply from Block 12 via pipeline:
Interim Solution: Proposals for the transport of natural gas to Cyprus for meeting its domestic demand under evaluation
Submerged Canyon Complex
Subduction Zone 6 6

7. Gas Discovery - Next Steps: Downstream Development
The political decision for the establishment of an onshore LNG plant has been taken
Available land for the construction up to 3 trains (5MT/year each)
Additional gas flows from other upstream fields (EEZ of the Republic of Cyprus and the neighboring countries) will be handled by the plant
It will be the largest investment in the island's history
Indicative timetable for project competition: 2019 7 7

8. Gas Discovery - Next Steps: Downstream Development
LNG Export to Regasification Terminals 8 8

9. Gas Discovery - Next Steps: Downstream Development
Natural Gas Pipeline: Israel-Cyprus-Greece
LEGEND
Existing pipeline
Planned pipeline
Tans-Med Gas Pipeline
Compressor Station

10. Gas Discovery - Next Steps: Downstream Development
Undersea Electric Power Line: Israel-Cyprus-Greece 10

11. Natural Gas Supply to Europe (2011)
LNG
Qatar: 43 bcm
Algeria: 13 bcm
Nigeria: 14.5 bcm
Egypt: 4 bcm
Trinidad Tobago: 4 bcm
Norway: 2.5 bcm
Pipeline Gas
Russia: 115 bcm
Norway: 93 bcm
Algeria: 33 bcm
LNG Flows
Pipeline Gas Flows
Source: BP Statistical Review of World Energy 11 11

12. Natural Gas Demand in Europe - 2030
Primary Energy Consumption (Μtoe)
Natural Gas Share in EU’s Primary Energy Consumption (%)
Source: Eurostat & Eurogas 12 12

13. Natural Gas Demand in Europe - 2030
Necessary Additional Natural Gas Supplies up to 2030
Natural Gas Production within EU declines
The share of Natural Gas in EU’s primary energy consumption will remain high i.e. mainly for power generation purposes
The exploitation of shale gas faces environmental challenges
The North East Mediterranean Region could be a new source for Natural Gas Supply to Europe
Source: Eurogas 13 13

14. More Gas (Oil?) Discoveries are coming…
2nd Licensing Round: 11 Feb. – 11 May 2012
Available Blocks: 1-11 & 13
Number of Applicants: 15 Companies/Consortia
Number of Applications Submitted: 33
Negotiation Phase
Blocks 2 & 3: ENI-KOGAS
Block 9: Total-Novatek-GPB
Block 11: Total 14

15. 2nd Licensing Round Block 2
Water Depth: ,051 m (average 1,575 m)
Average Distance from Vasilikos: ~75 km
Block 3
Water Depth: ,020 m (average 1,481 m)
Average Distance from Vasilikos: ~125 km
Block 9
Water Depth: 1, ,351 m (average 2,108 m)
Average Distance from Vasilikos: ~105 km
Block 11
Water Depth: 1, ,186 m (average 1,621 m)
Average Distance from Vasilikos: ~190 km
Extensive Existing Seismic Data:
2D seismic grid 5x5km
659 sq. km 3D (2007) seismic data in Block 3
Proposed Working Program for Blocks 2, 3, 9 & 11:
Extensive 2D & 3D seismic surveys
1 / 2 exploratory wells for the first exploration phase (3yrs) 15

16. Cyprus' Energy Profile Will Change Radically…
New Exploration Licenses (more hydrocarbon discoveries)
Proposals for gas supply as interim solution (2015)
Gas Supply to Cyprus via Pipeline
Establishment of LNG plant for gas transport to EU and the International Markets
Other options for gas monetization:
Gas export pipeline
GTL
Petrochemicals
Cyprus can develop the necessary infrastructure for providing services to drilling activities 16

17. Thank you for your attention!17