Page 9 - EurOil Week 50 2021

EurOil POLICY EurOil

ExxonMobil, Qatar Energy sign

gas deal with Greek Cyprus

CYPRUS EXXONMOBIL and Qatar Energy on the licensing of Block 5, Cypriot Energy Min-
December 11 signed a contract for oil and ister Natasa Pilides said: “We proceed based on
Fieldworks will begin gas exploration and production sharing off international law and the Law of the Sea; this has
in the second half of the divided island of Cyprus, despite Tur- always been our principle.”
2022. key’s objections. Fieldwork on Block 5 will begin in the second
Cypriot Energy Minister Natasa Pilides, Var- half of 2022, she said.
navas Theodosiou, CEO of ExxonMobil Cyprus, In early December, Turkey’s Foreign Minis-
and Ali al-Mana, director of Qatar Energy’s try issued a statement in response to reports that
International Upstream and Exploration, signed the Greek Cypriot government had granted a
the contract in Nicosia, AFP reported. hydrocarbon exploration permit to the Exxon-
It is the second gas exploration contract that Mobil-Qatar Petroleum consortium, saying that
the consortium has signed for Block 5 in the the deal ignored “the rights of our country and
island’s exclusive economic zone (EEZ). the Turkish Cypriots.”
In February 2019, the consortium discovered The licence area in question violates Turkey’s
a huge natural gas reserve off Cyprus in Block continental shelf in the Eastern Mediterranean,
10. It amounts to the island’s largest find to date, according to the statement.
holding an estimated five to eight trillion cubic “Turkey will never allow any foreign country,
feet. company or vessel to engage in unauthorised
The consortium plans to drill an appraisal hydrocarbon exploration activities in its mari-
well in Block 10 in late December, with results time jurisdiction areas, and will continue to res-
expected by the end of February. olutely defend its rights and those of the Turkish
Asked about Turkey’s negative reaction to Cypriots,” the ministry said. ™

ENERGY TRANSITION

Denmark awards funds for CCS

DENMARK DENMARK has awarded financing to carbon Meanwhile, the consortium developing
capture and storage (CCS) projects in the North Denmark’s Greensand CCS project reported
Two projects are getting Sea that aim to decarbonise the country’s heavy on December 8 securing a grant of DKK197mn
grant support. industry. ($30mn) from the government. Germany’s
North Sea producer Noreco announced on Wintershall Dea, UK petrochemicals producer
December 8 that the Project Bifrost CCS project Ineos and almost 30 other organisations are
it is involved in had received all the grant fund- working on the project, which is expected to
ing it had requested, some DKK75mn ($11mn). store up to 8mn metric tons/year of CO2. This
Noreco and its partners TotalEnergies and Den- CO2 is to be stored in the Siri area of the Dan-
mark’s state-owned Nordsofonden are research- ish North Sea, where Wintershall Dea already
ing potential carbon storage at the Herald field in produces gas.
the North Sea. An initial storage capacity of 3mn The plan is to launch Greensand’s pilot phase
metric tons/year is envisioned. in late 2022 and then commence full-scale stor-
The group wants to utilise existing pipeline age operations in 2025. The project would pro-
infrastructure in the area to handle the CO2, vide all the CCS capacity envisaged in Denmark’s
transforming it into a national CO2 transporta- climate strategy.
tion system. The subsea reservoirs that will store the CO2
“Our assets in the Danish North Sea, espe- were confirmed as feasible by DNV in November
cially the unique pipeline infrastructure, have last year, resulting in the project getting full tech-
the potential to be an important enabler for nical approval in August this year. Denmark’s
establishing Denmark as a CCS hub,” Noreco Maersk Drilling was selected as a contractor of
COO John Hulme commented in a statement. choice for the project in October ™

Week 50 16•December•2021 www. NEWSBASE .com P9