Page 11 - EurOil Week 13 2022

EurOil PROJECTS & COMPANIES EurOil

ExxonMobil, QatarEnergy find “high-

quality” gas reservoir off Cyprus

CYPRUS EXXONMOBIL and QatarEnergy have identi- pandemic. The Stena Forth rig was used to drill
fied a “high-quality” gas reservoir off the coast the borehole.
ExxonMobil and of Cyprus during appraisal drilling, the Cypriot ExxonMobil and QatarEnergy were also
QatarEnergy also work government reported on March 21. awarded rights to the Block 5 concession neigh-
at the adjacent block. The pair are appraising the 2019 Glaucus dis- bouring Block 10 in December.
covery at Block 10 in the Mediterranean Sea. The There has been a flurry of interest offshore
drilling of the test well began in December last Cyprus since the 2011 discovery of the Aphro-
year and has not been concluded. dite field, where a production-sharing agreement
According to Cyprus’ energy ministry, pro- (PSA) was reached between the government and
duction tests have been carried out and a detailed Chevron, Shell and Delek in 2019. That field is
analysis is expected to take place to improve under- estimated to be 7 tcf (198 bcm)) of gas in size.
standing of the reservoir’s characteristics and However, the prospects for development off the
assess the potential for commercial development. country’s coast depend greatly on whether the
However, neither ExxonMobil nor QatarEnergy EastMed pipeline project that would connect
have commented on the result so far. Israeli and Cypriot offshore fields with the Euro-
At the time of its discovery, Glaucus was esti- pean market is realised.
mated to hold between 5 and 8 trillion cubic feet EastMed suffered a major setback in January,
(142-227bn cubic metres) of gas. ExxonMobil when the US government said it was dropping its
serves as operator of Block 10 with a 60% inter- support in favour of electricity interconnectors
est, while QatarEnergy has 40%. The discovery that would deliver renewable energy to Europe,
well was drilled to a depth of 4,200 metres below namely the EuroAfrica and EuroAsia lines. But
sea level, in waters 2,062m deep. with European gas prices now soaring, and the
The pair had intended to start work on the bloc more committed than ever before to phas-
appraisal well much sooner, but delayed the cam- ing out Russian imports, EastMed may be getting
paign in light of the coronavirus (COVID-19) a second lease of life. ™

National Grid sells stake in UK gas

transmission to Macquarie, BCIM

UK UK energy infrastructure operator National NGG’s regulated asset value is estimated at
Grid has agreed to sell a 60% stake in its UK around £6.6bn, while its net debt is assessed
National Grid said the gas transmission and metering business NGG at £3.8bn.
sale was part of its pivot to Australia’s Macquarie and British Columbia Once the deal is closed, National Grid will
towards electricity and Investment Management (BCIM) for £2.2bn retain 40% of NGG through a holding company
away from gas. ($2.9bn). called GasT TopCo. An option agreement is in
National Grid said the transaction would place for the sale of this stake as well to Mac-
serve as part of its pivot towards electricity, fol- quarie and BCIM between January 1 and June
lowing on from its acquisition of Western Power 30 2023. If that option is exercised, National Grid
Distribution, the UK’s biggest power distribu- will receive cash on similar terms to the previous
tion business, and the announced sale of the transaction.
Narragansett Electric Co in the US. The UK energy market is undergoing signifi-
“This transaction further enhances our role cant turbulence, with a number of British energy
in delivering the UK’s energy transition, pivots suppliers having already gone out of business
our portfolio towards electricity, whilst ensuring since last September, amid soaring prices and
the security of the energy supply for the coun- regulator Ofgem’s introduction of a price cap to
try,” National Grid CEO John Pettiigrew said in prevent suppliers from passing on the extra cost
a statement. to customers.
The transaction values NGG at £9.6bn National Grid’s gas transmission business
($12.6bn). In addition to £2.2bn in cash, comprises a 7,000-km pipeline network that is
National Grid will also receive £2bn in addi- one of the largest systems of its kind in the coun-
tional debt financing. As of March 2022, try. ™

Week 13 31•March•2022 www. NEWSBASE .com P11